Flipkart will use 3rd-party sellers for private labels
Flipkart has also hinted at discussing pricing under the programme, which sellers are protesting as it will make private brands gain additional advantage on the e-commerce platform.
In the first such move, Flipkart plans to start a franchisee network for its private labels under the Smart-Buy brand, which can be sold by sellers on its platform, said people aware of the matter. The online retailer has sent a note to its third-party sellers asking them to put their products under its private label promising them higher sales and other incentives.
Incidentally, Flipkart has also hinted at discussing pricing under the programme, which sellers are protesting as it will make private brands gain additional advantage on the e-commerce platform.
An online seller association had complained about leading e-tailers giving undue advantage to their own labels and written to the Competition Commission of India and the commerce ministry earlier. Over the past eight-10 months, leading e-tailers like Flipkart and Amazon have introduced their own private brands, which typically offer greater control over selection, sourcing and pricing to them. A Flipkart spokesperson confirmed the franchising plan and that the company had the target of earning 10% of overall sales on Flipkart from its private labels.
A spokesperson of the online seller group All India Online Vendors Association (AIOVA) said this move by Flipkart will put third-party sellers’ inventory on the back foot as they won’t get any prominence on the e-tailer’s site.
Flipkart has also hinted at discussing pricing under the programme, which sellers are protesting as it will make private brands gain additional advantage on the e-commerce platform.
In the first such move, Flipkart plans to start a franchisee network for its private labels under the Smart-Buy brand, which can be sold by sellers on its platform, said people aware of the matter. The online retailer has sent a note to its third-party sellers asking them to put their products under its private label promising them higher sales and other incentives.
Incidentally, Flipkart has also hinted at discussing pricing under the programme, which sellers are protesting as it will make private brands gain additional advantage on the e-commerce platform.
An online seller association had complained about leading e-tailers giving undue advantage to their own labels and written to the Competition Commission of India and the commerce ministry earlier. Over the past eight-10 months, leading e-tailers like Flipkart and Amazon have introduced their own private brands, which typically offer greater control over selection, sourcing and pricing to them. A Flipkart spokesperson confirmed the franchising plan and that the company had the target of earning 10% of overall sales on Flipkart from its private labels.
A spokesperson of the online seller group All India Online Vendors Association (AIOVA) said this move by Flipkart will put third-party sellers’ inventory on the back foot as they won’t get any prominence on the e-tailer’s site.
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