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Today, we can shop by clicking a button on our laptops or swiping our mobile phones. While e-commerce has changed the way we shop, how has it helped sellers? Is selling online as easy as buying? Fairly easy, say those who have done it. The websites are more than happy to offer support in terms of logistics, product display, dealing with customer complaints, etc. But, customer feedback and rating assumes more importance in online selling, in the absence of the touch and feel factor.
Flipkart launched a 'Seller Advantage Week' between July 13 and 18. All sellers who registered with Flipkart were exempt from paying commission for sales for a month, had free photo shoots for their product catalogues, help from Flipkart to start their value added tax (VAT) process, etc. Similarly, Snapdeal recently tied up Small Industries Development Bank of India to provide financial support to its micro, small and medium entrepreneur vendors.
Wider customer base
Mumbai-based Saumya Gupta, a trained commercial pilot, started an apparel business in 2008 when she could not find a job due to an economic slowdown. She started procuring garments and selling from her home. "I was always good at styling and got a good response for my clothes. But the clients were mainly friends and family. I was dependent on word of mouth to spread my business," she says. Though she had her own website and Facebook page, she was unable to reach more customers.
Then, in 2011, Gupta registered on Flipkart as a seller. "The biggest advantage has been the reach. It is not possible to open stores in each city but I now have customers from places like Bengaluru, Manipur and Odisha," she says.
International reach
It is possible to reach international customers, too. For instance, through eBay, sellers can reach 40 different countries, notes Navin Mistry, head of retail exports and lifestyle at eBay India.
This is what made exporters like Delhi-based Naveen Pamnani switch to the online route. "About 95 per cent of my revenue now comes through eBay. I have stopped offline exports completely," says Pamnani, who exports spare parts for vintage cars and motorcycles, herbal cosmetics, handicrafts and medical equipment.
Registering & listing
"One can register as a seller and start listing without any intervention. You have to complete an online verification process by giving proof of identification and residence, and can start listing immediately. If you are a franchise of a brand, you must have an authorised letter from that brand," says Mistry of eBay. The documents required include PAN, VAT id, TIN, TAN and the like.
Listing on the websites is usually free. eBay allows up to 100 free listings. After that, there are charges which work out to less than Re 1 a listing. Similarly, Flipkart allows only original products with original warranties that are legally permissible in India, says Ankit Nagori, its chief business office. "A seller blacklisted from other e-commerce portals does not qualify to be a seller on our platform."
Display
Since buyers cannot physically see the goods, this is important. When Gupta started, she got a friend to model in her clothes and the payment was two outfits. The photographer was a friend who did freelancing. Now, she uses international models.
Quality control
According to Mistry, the best way to ensure quality control is customer feedback. If the negative feedback or rating a seller gets crosses a certain threshold, then he/she is suspended from selling on the website. Only the buyer can change the rating or feedback.
"Sellers get real time ratings from buyers, which is visible on their (sellers) dashboard. If the rating is not good, we first restrict the seller from selling more than 100 items. If the rating does not improve, we suspend the seller," says Mistry.
If a buyer spots fake goods and reports it, the seller gets blacklisted. The websites also use algorithms to spot fakes. For instance, a price filter will alert the system if branded goods are being sold at very low prices and if found fake, that listing will be taken off and the seller blacklisted. "Customer rating, returns and seller cancellations are the key factors for a seller's rating. A seller with good customer ratings, less returns and cancellations immediately gets a better rating as compared to a seller with unhappy customer reviews and lot of returns and cancellations," says Nagori of Flipkart.
Flipkart also has on-ground teams doing quality checks at seller facilities from time to time, along with mystery shoppers who are constantly monitoring sellers for product quality, delivery timelines and customer-friendly return/replacement policies.
Feedback critical
Since there is no 'touch' and 'feel' in online buying, websites depend hugely on customer feedback. Sellers can be suspended if customer feedback is negative. Sometimes, it might not even be the seller's fault.
This is something Delhi-based Santosh Grover faced. Grover sells jewellery and gems to international clients. Earlier, she would participate in trade fairs but it was not organised. "I had the same circle of clients and it was a part-time business," she says.
She started selling on eBay about three years back. Now the business is more organised and the number of customers has increased.
Once, a customer who was not able to make the payment for some of Grover's goods left negative feedback on the website. Later, Grover found that customer had previously not paid a seller, due to which he was blacklisted by eBay and, hence, was unable to make the payment to Grover. When she got in touch with eBay, the negative feedback was removed from the website. About the support from eBay, she says: "I get tips on trends related to customer demand. For instance, while discounts during Christmas is common, I was told that Halloween is also a good time to offer discounts in USA."
Cost
Listing is free, entirely or up to a certain number. Other than this, sellers have to pay a percentage of the sale price when the goods get sold, as commission or transaction fees. This could vary, depending on the category. For the goods that get sold, sellers get paid their money on a weekly basis.
Support
Most websites provide shipping and other logistic services through dedicated vendors, at discounted rates. Even warehousing services, where required, are provided at discounted rates. It is up to the sellers if they want to use these services. While sellers do get feedback on how to price their products, the final decision is entirely up to them. Reports on demand trends such as seasonal ones (in apparel), demands from specific geographical markets, etc, are also provided.
