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Flipkart Vs Amazon : Which is Better For Sellers? 

Flipkart Vs Amazon : Which is Better For Sellers? 

By Anand Maurya

An Overview & Business Models of Amazon and Flipkart

Amazon and Flipkart are two dominant e-commerce marketplaces in India. Both these e-commerce giant offers a wide range of products and services to consumers, and both provide sellers with a platform to reach a large audience.

However, there are some key and important differences between the two platforms that make one platform more attractive to sellers than the other one. 

For your information, Amazon operates on a marketplace model, where this e-commerce giant acts as a facilitator between buyers and sellers. Interestingly, Amazon does not hold any inventory, and charges sellers a commission on each sale. They are also known for offering a variety of services, such as fullfilment, great customer service, and marketing. 

On the other hand, Flipkart also operates on a marketplace model, but it has a private label business. This means that Flipkart sells its own products alongside those of third-party sellers. 

Here are some key comparisons between Amazon and Flipkart that you should know about :-

Parameters  Amazon  Flipkart 
Commission fees Higher commission fees Lower commission fees
Customer services  More comprehensive customer support  Less comprehensive customer support 
Payment options  More payment options are available  Fewer payment options available 
Sales  Inorganic  Organic 
Categories (for example in clothing and shoes)  Average  Better 
Return policy  More lenient return policy  Less lenient return policy 
Competition  Very high Comparatively low 

Amazon offers a robust and comprehensive platform for sellers, with stronger brand protection policies, marketing services, and responsive seller support. Additionally, the trust from customers for expensive products is higher as compared to Flipkart.

So, if you are selling expensive products then Amazon is the right choice for you. But, if you are in average-priced products then Flipkart would not be a bad option. 

Registration Process is almost same for both Marketplace Platforms

The registration process for both the giant e-commerce platforms is very simple and easy. You require three documents for registration and they are PAN Card, GST Number, and proper current bank account details. 

How Shipping Modes Differ on Amazon & Flipkart?

Amazon- Amazon offers multiple shipping modes to sellers some of them includes Easy Ship, FBA, and Self-Ship. Here, Easy Ship is prepaid pickup service where Amazon picks up the products from seller’s location and simply delivers them to customers.

FBA (Fulfilled by Amazon) is a service where sellers can store their products in Amazon’s Delivery centres, and rest of the process is taken care by Amazon. Self-Ship is a service where sellers handle the shipping and delivery of their products. 

Flipkart – Flipkart also offers similar shipping modes to Sellers such as Easy Ship, Fulfilled By Flipkart (FBF), and Self-Ship. FBF is a service where Flipkart will take care of the storage, packaging, and delivery of the products through Flipkart Delivery Franchise. 

Faster Payment Cycle on Flipkart

Amazon – Sellers here are categorized into four and they are Basic, Standard, Advanced, and Premium. Here is the payment cycle for each:-

  • Basic- 10 days 
  • Standard- 7 days 
  • Advanced- 7 days 
  • Premium- 3 days 

Flipkart – Sellers are categorized into six categories and they are Wood, Bronze, Silver, Gold, Platinum, and Diamond. Here is the payment cycle for each:-

  • Wood- 15 days
  • Bronze- 10 days 
  • Silver- 10 days 
  • Gold- 7 days 
  • Platinum- 7 days 
  • Diamond- 2 days 

FBA & Flipkart Warehousing 

When it comes to selling on these e-commerce platforms, one of the most crucial factors for sellers becomes the logistics and warehousing services offered by Amazon and Flipkart. Here is a brief comparison of FBA and Flipkart Warehousing:-

  • Storage – With FBA, sellers can easily store their products in Amazon’s vast network of warehouses across India. On the other hand, Flipkart offers warehousing services through its partnerships with third-party logistics providers. 
  • Inventory management – FBA provides automatic inventory management services, it allows sellers to focus on their business operations without any worry about stock management. Flipkart offers basic inventory management services to sellers. 
  • Cost – FBA charges higher fees as they take good care of products. It offers added benefits in terms of logistics and inventory management. Flipkart charges less fees for warehousing. 
  • Customer Service – FBA has excellent customer service through its 24/7 customer support team. Flipkart offers customer service through its seller support system but has faced criticism for its slow response. 
  • Returns Management – FBA is the one who handles return management on behalf of sellers, making it easier for them to manage their inventory and reduce overheads. Flipkart requires sellers to manage returns themselves, which can be time-consuming and challenging in terms of logistics coordination. 

How COD Charges and Commission Varies on Amazon & Flipkart for Sellers?

The table below compares the shipping charges for 500 grams and 1 Kg weight on Amazon and Flipkart

Zone Amazon (Rs) Flipkart (Rs)
local 44 44
zonal 53 51
national 74 65

Amazon Shipping Charges are categorized into different zones and they are local, zonal, and national. Here are the charges taken by Amazon:-

  • For 500 grams – Rs 44 (local) + 13 (1 kg)
  • For 500 grams – Rs 53 (zonal) + 17 (1kg)
  • For 500 grams- Rs 74 (national) + 25 (1kg) 

Flipkart- Shipping charges are categorized into different zones and they are local, zonal, and national. Here are the charges taken by Amazon:-

  • For 500 grams- Rs 44 (local) + 4 (1kg)
  • For 500 grams- Rs 51 (local) + 19 (1kg)
  • For 500 grams- Rs 65 (national) + 26 (1kg)

The commission charged by Amazon for t-shirt (delivered products) :-

  • 14.5% for item price which is below Rs 500
  • 21.0% for items priced above 500

For un-delivered products :-

  • 100% reimbursed after 45 days 

For customer return charges :-

  • For 0-250 grams- Rs 45 (standard)
  • For 251-500 grams- Rs 70 (standard)
  • For 501-1000 grams- Rs 95 (standard)
  • More than 1000 grams- Rs 130 (standard)

The commission charged by Flipkart for t-shirt (delivered products):-

  • Rs 0-300 charge taken 10.25%
  • Rs 301-500 charge taken 16.75%
  • Rs 501-1000 charge taken 15.25%
  • Rs 1000+ charge taken 15.5%

For undelivered products:-

  • No charges 

For customer return charges:-

  • For 500 grams- Rs 35 (local)
  • For 500 grams- Rs 55 (zonal)
  • For 500 grams- Rs 75 (National)

Requirements to Start Business With Amazon & Flipkart as a Seller

Here are the requirements to start a business with Amazon:-

  • You must create a Seller Central Account. 
  • Make sure to choose a selling plan. 
  • Configure your seller central account 
  • Enroll your brand and sell with Amazon 

Here are the requirements to start a business with Flipkart:-

  • Registration process online 
  • Documents required are PAN Card, ID Proof, Address Proof, Cancelled Cheque, GST Registration, Bank Account Number, and Personal details. 

Non-Returnable Categories on Amazon & Flipkart for Sellers

Amazon- Amazon has a list of non-returnable categories:-

  • Personal care products 
  • Underwear and lingerie 
  • Jewellery
  • Food and beverages 
  • Books and magazines
  • Software and games 
  • Gift cards 

Flipkart – Flipkart does not have a comprehensive list of non-returnable categories. However, they generally allow returns for most products within a specific timeframe. 

Branding and Trademark Considerations on Amazon & Flipkart for Sellers

Amazon and Flipkart both have strong brand recognition in India. Amazon is a well-established global brand, while Flipkart is an Indian brand which has gained immense popularity over the years. Both companies have trademarked their logos and brand names. 

RTO & Returns Percentage Comparison

According to some report by RedSeer, the RTO rate for Flipkart is around 12-15% while for Amazon is around 8-10%. Flipkart has a higher RTO rate due to its focus on fashion and lifestyle categories. 

The return percentage for both platforms is around 10-15%. 

Benefits of Amazon Over Flipkart for Sellers 

Here are some benefits of Amazon over Flipkart for sellers:-

  • Global reach- Amazon has a wide global reach which provides an opportunity for sellers to expand their business. 
  • Advanced tools- Amazon is known for offering advanced tools for sellers, such as Amazon Seller Central, Amazon FBA, and Amazon Advertising. 
  • Higher sales- Amazon is known for higher traffic as compared to Flipkart, which results in higher sales. 

Benefits of Flipkart over Amazon for Sellers

Here are some benefits of Flipkart over Amazon for sellers:-

  • Lower Fees – Flipkart definitely charges lower fees on most categories, which results in high-profit margins for sellers. 
  • Indian Market Focus – It has a better understanding of the Indian market which provides an advantage for sellers who are targeting an Indian audience. 
  • Easier Policy Compliance – Flipkart has less stringent policy compliance as compared to Amazon, as a result, it makes it easier for sellers to comply with the rules. 

Conclusion – Amazon vs Flipkart Where shall I Start Selling?

Both these giant e-commerce services in India are great on their own. But, if you are specific about something then you would surely be focused on only one of them.

So, the better one among these two e-commerce highly depends on the product you have chosen, the area you are targeting, the commission you are willing to get and give, delivery services charges, and many more. If you are planning to open a seller business on these platforms then do your research and then open a business.