Comparison Chart

comparison chart of different online portals for selling of merchandise
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COMAPRISON OF ONLINE PORTALS AMAZON Whenever one thinks of an online marketplace to sell on, one of the first names that pop up is Amazon. The world’s largest online retailer has become a hot favourite with sellers since entering the Indian market in June 2013. Here’s a breakdown of the services Amazon provides. a) Pricing: The following is a summary of the pricing charged by Amazon for listing and selling products. Monthly Subscription Fee: Rs 499. Closing Fee: Rs 10 charged on every sale that you make through them. Referral Fee/Commission: Ranges between 5% and 15% per sale, depending on the product category. You can check out the detailed pricing for Amazon here. b) Shipping: A seller has the option of either shipping the product to customers himself, or using the Fulfillment by Amazon (FBA) to ship products. In case the sellers signs up for FBA, he is required to stock the products at the various Amazon Fulfillment Centers. Whenever an order is placed by the customer, Amazon packages and ships the product to the customer. The seller is charged extra for the following: Storage Space: Rs 14.2 per cubic feet per month Shipping: Rs 40 to Rs 45 per 500 grams Packaging: Rs 10 to Rs 25 per unit Delivery Service Fee: 1% of item value You can read the detailed pricing card for the Fulfilment by Amazon program here. c) Packaging: Packaging material is not provided by Amazon for sellers, unless they sign up for FBA. In that case, packaging is undertaken by Amazon themselves. d) Payout Period: Amazon disburses payments to sellers’ bank accounts once every week. A seller is eligible to get paid for an order 7 days after it is confirmed as shipped. e) Marketplace Size: Amazon has close to 10,000 sellers on its marketplace in close to 10 months of operation in India. The website receives almost 10 million unique visitors every month. It offers more than 2 Crore products, in addition to 12 million books and 2 million e-books. E-BAY Another name synonymous with selling online is eBay. The online retail giants were founded in 1995 and took just 10 years to enter the Indian market, in 2005. One major difference between eBay and other marketplaces is that you have two options while pricing your products. You can either list a fixed price for a product or choose an auction type price. You can select a minimum bid amount and also an end date for the auction. The highest bidder at the end of the auction gets to purchase the product. a) Pricing: The pricing structure on eBay is a little more complicated and varies depending on a lot of factors. Here is a brief of the different charges that a seller incurs on eBay. Subscription Fee: On eBay, you can choose to be a Non Shop Subscriber or a Subscriber (3 different plans). You avail benefits depending upon which plan you are subscribed to. Here are the rates for the different plans available on eBay.     Basic Store: Rs 499 per month Featured Store: Rs 1999 per month Premium Store: Rs 3999 per month Insertion Fee: To list a product on your store, you are charged a listing fee. The first 100 products are free of the listing fees for every seller. After that, the rates charged are as follows. The rates are shown for the different listing types. The first category is for the 1, 3, 5 or 7 days of listing. The second is for the 10 or 30 day listing option. PaisaPay Fee: For every sale made through eBay, you will be charged 4.5% as the PaisaPay fees. In addition, on this PaisaPay fee (only interest amount, not the total sale value), 12.36% Service Tax is also applicable. Final Value Fee: For every product that you sell, you will also be charged the Final Value Fees. It is a percentage of the total sale value. This varies between 1% and 7%, depending on the type of product you are selling. You can check out the detailed pricing structure for selling on eBay here. b) Shipping: eBay sellers too have the option to either ship the products themselves, or use eBay’s shipping solution ‘PowerShip’. Unlike Amazon, eBay does not have any physical fulfillment center where a seller can stock the products. Once the seller packs the products himself, representatives from eBay’s logistics partners pick up the order from the seller. The package is then delivered to the customer. Here are the shipping charges for eBay’s PowerShip. c) Packaging: Just like Amazon, packaging material is not provided to the seller by eBay unless you sign up for PowerShip. Once you sign up for it, you are provided eBay branded packaging material to pack your orders. d) Payout Period: Once the customer pays for the product, eBay holds the payment till the buyer confirms receipt of the order in good condition. Once the confirmation is done, eBay transfers the amount to the seller’s account. So, there is no definite payout period, but instead depends on the shipping time and customer confirmation. The entire process usually takes 7-10 days from the date of order. e) Marketplace Size: There are more than 40,000 sellers active on the marketplace in India and has over 1.1 million live listings on its website at any given point of time. There are more than 2 million active users on eBay in India from more than 4,000 cities across the country. FLIPKART Flipkart is the success story of the Indian eCommerce industry. The 7 year old company is the largest eCommerce startup in India and has become a household name in the country. It caters to a large number of sellers and buyers and offers wonderful services, which has seen its reputation skyrocket in the last few years. Here is how the marketplace ranks up in the different parameters. a) Pricing: Flipkart is another marketplace that follows the performance based pricing structure. Here is a breakdown of the charges that you have to bear on Flipkart as a seller.  Subscription Fee: Nil. There is no subscription fee involved in selling your   products on Flipkart. Listing Fee: Nil. There is no fee required to list your products on Flipkart. Commission: Flipkart also maintains confidentiality with regards to the exact commission rates that they charge on every product. The charges vary between 4% and 20% for every successful sale through them and many sellers get personalized rates depending on the quantity of sales they guarantee. b) Shipping: For shipping, Flipkart uses its own logistics service eKart. It is mandatory for the sellers to use their services when shipping orders to customers. It is the seller’s responsibility to pack the order and keep it ready for the courier representatives, who collect it from the seller.  Shipping Charges: Once again, the exact rates aren’t disclosed by Flipkart, but the shipping rates are around Rs 35 per 0.5 Kg delivered through eKart. c) Packaging: Flipkart usually does not provide packaging material to its sellers. But in certain rare cases, if a large quantity of orders is guaranteed by a seller, Flipkart does provide the material. d) Payout Period: The payment cycle on Flipkart for sellers is different for the two different tiers of sellers. All new sellers start off as Tier-2 sellers. Once the seller completes one month on Flipkart with minimum 30 transactions, he is considered a Tier-1 seller. However, for this to happen, a settlement defect rate of less than 5% has to be maintained. If it shoots higher than 5%, the Tier-1 seller status is downgraded again to Tier-2. The payout times for the different tiers are:  Tier-1 Seller: The payment cycle for all tier-1 sellers is Dispatch Date + 5  business days. Tier-2 Seller: The payment cycle for all tier-2 sellers is Dispatch Date + 10 business days. e) Marketplace Size: Flipkart has a relatively low number of sellers when compared to its competitors, with around 3,000 sellers active on the marketplace. This is due to the company’s policy of onboarding sellers after a stringent quality check. Still, it was the first Indian eCommerce company to touch $1 billion in sales, earlier this year. Marketplace Pricing Amazon Subscription Fee INR 499/ Month Listing Fee INR 10/ Sale Payment Gateway Fee Commission Self Shipping Shipping Provided Shipping None Packaging Cost of Packaging Panel and Customer Service None ✔ ✔ ✘ ✔ ✔ ✔ Powership Use eKart Use Fulfillment 500 gms + 1% of Rs. 40 – 49/ 500 gms ✘ ✘ Only for FBA; Only for Handled by PowerShip Amazon customers NA NA Confirmation from customer + 7 Days 10,000 Sellers Size of the Marketplace Free 4%-20% Shipment Payout Period products 4.5% Paisa Pay Free 5%-15% Item Value Packaging Provided? (For Basic Store) Free for first 100 Flipkart Fee + 12.36% ST 1%-7% by Amazon (FBA) Rs 40 to Rs 45/ Cost of Shipping eBay INR 499/ Month INR 35/ 500 g (approx.) ✔ NA On Shipment Tier-1 Selle Confirmation Dispatch Dat from customer 7 business da 40,000 Sellers 10 Million Unique 2.5 Million Active 3,000 Sellers Visitors / Month Users $1 Billion Sale 2 Crore Products 1.1 Million 2012-13 Listed Dangerous Product Listings Good panel but Panel. very poor Block seller's customer service. account, even if Poor seller buyer is fraud. protection. Automated. Be solutions and customer servi