BENGALURU: Small merchants are recording handsome gains in the ongoing festival season, with several registered with India’s largest online retailer Flipkart and rival Amazon, breaching the Rs 1-crore mark in sales. While fifty merchants on the Flipkart platform topped the crore mark, an additional 350 small sellers posted sales of over Rs 10 lakh since the mega-sale began on Sunday.
Amazon India said a hundred merchants on its platform crossed the crore mark in revenue over its five-day festive sale. “We received 13,000 orders in just one day of the Big Billion Sale,” said Dhiraj Agarwal, cofounder of Campus Sutra, a seller on Flipkart, who expects to receive 80% of the Rs 100-crore revenue he is forecasting for this festive season through online sales.
Agarwal, who sells apparel, estimates that the two major costs he incurs from selling online are the commission fee, which is about 15% of the order value and the delivery costs, which is about 6-7%. “The average order value this season came to about Rs 550-575 after discounts,” he said.
“We had sellers from 824 new pincodes receive an order in this sale, as merchants from corners of India were getting orders on our platform,” said Amit Agarwal, country head, Amazon India. Flipkart, which sold goods worth $200 million on Monday, the third day of its sale, said nearly 5,000 merchants debuted on its marketplace this festival season.
“They are already seeing 10 times the sales as compared to their regular sales in the past three months,” said Anil Goteti, head of marketplace, Flipkart.
“Looking at the run-rate, before the end of BBD 2016, we will have over 100 crorepatis and 1,000 millionaires,” he said. Sudhir Agarwal, who sells under the brand TVESA said he has seen a five-fold spike in business during the Big Billion Day sale period.
In the big festive sales on Flipkart, a new set of large sellers have emerged on the platform selling high-value items ranging from smartphones to large appliances like television sets. These sellers — called “Alpha Sellers” — have emerged on the platform over the past four-five months as it looks to reduce the dependence on WS Retail, till now the largest seller on Flipkart.
SuperComNet, owned by Shreyash Retail has been selling smartphones including exclusives from Motorola, Apple, Xiaomi, while OmniTech Retail owned by Consulting Rooms has sold large appliances like televisions and washing machines on the portal.