Selling products on Flipkart’s marketplace can be a profitable method to reach a wide audience of potential customers. However, before getting started, it is essential to comprehend the various charges associated with selling on Flipkart.
Flipkart charges several types of fees to sellers, including Shipping Fee, Fixed Fee, Collection Fee, Commission Fee. These fees are generally charged according to the rate cards provided by Flipkart. A different percentage or rate for every fee based on the sale price and SKU details is charged for each item sold on the Flipkart marketplace.
An example of the flipkart rate card:
Before starting to sell products on Flipkart, it is crucial to consider the associated fees and include them in the pricing strategy. Although the fees might seem high, the potential benefits of reaching Flipkart’s massive customer base can outweigh the costs.
Cointab Reconciliation provides a novel method for businesses to make data-driven decisions on the optimal way to sell on Flipkart.
The software works by inputting a report containing the SKU details of each item, its MRP, purchasing cost, and any additional costs. The software then calculates every Flipkart fee charged for each selling price between the cost and MRP, displaying the outcomes and profit/loss margins for each item at every price point.
An example of the SKU report:
The software displays the result as follows:
Pricing for SKU – A
Pricing for SKU – B
These results can also be downloaded in any format for further analysis:
This allows businesses to analyze which price point generates the most profit, and then research or test various prices to maximize their net profits. Cointab reconciliation eliminates the problem of businesses setting a lower price point to increase sales, leading to marginal loss, by calculating all fees and miscellaneous charges to find the net marginal profit and determine the optimal price.
In summary, selling products on Flipkart can expand a business and reach a large audience, but understanding the fees associated with it is essential. Cointab reconciliation offers a helpful tool for businesses to determine the best price point for the highest marginal profit. By analyzing Flipkart’s various fees and testing different prices, businesses can maximize their net profits and make informed decisions for their sales strategy on the platform.