E-Commerce,Indian value added tax (VAT),Limited Liability Partnership,Partnership,Private limited company
How to sell on various E-Commerce sites like Flipkart, Amazon, Snapdeal
09 Nov 2016  |  Views: 125  | 
Soumya
Advocate

With the evolution of internet technology, the whole wide world has changed. All our old time practices of selling in shops and visiting bazaars for shopping seem old-school now. E-commerce sites have flourished to a great extent, e-commerce portals like Flipkart, Amazon, Snapdeal, Jabong have changed the face of online shopping in India.

It is very easy to shop from these websites but when it comes to selling products on these sites, it puts you in a fix. Selling on these e-commerce sites involves a procedure which must be followed. Almost all these sites have almost the same procedure with minor alterations here and there.

Flipkart is an e-commerce marketplace unicorn company founded in 2007 by Sachin Bansal and Binny Bansal. The company is registered in Singapore, but has its headquarters in Bangalore and Karnataka in India. Flipkart ships over 50 lakhs shipments each month and generates over 80 lakh daily page visits. Therefore the business opportunity on flipkart is very massive.

Selling on flipkart involves five major steps:

  1. Business entity: The first step is to review, decide and register a suitable business entity.
  2. Tax registration: Thereafter, you must obtain PAN, TIN & TAN in the name of the business entity.
  3. Bank account: A bank account must be opened in the name of the business.
  4. Register with flipkart: If you already have a set-up business, with all the above requisites. This would be your first step. In this step all the required documents must be submitted to flipkart and you are ready to become a flipkart seller.
  5. Sell on flipkart: On registration, you may commence to sell your products on flipkart.

    The process of signing in on flipkart is easy and can be started from the Flipkart Seller Homepage. The person or business may signup thereafter and some of the details asked on registration on this maybe the following:

     

  • Name
  • Email address
  • Pickup address / business address
  • Phone number
  • Categories of products to be sold
  • Business registration documents
  • Tax registration documents

The requisites for different type of business entities differ from one another to an extent to sell on flipkart:

  • Selling on flipkart as sole proprietorship or as One Person Company: A sole-proprietorship company does not offer limited liability protection to its promoters, it is not easily transferable, does not have investors or partners, not very scalable and has limited capacity to obtain loans. Hence it is advisable to not become a seller in flipkart being a sole proprietor entity.
  • Selling on flipkart as Private Limited Company: Being a private limited company is the most preferable method of selling on flipkart as it provides limited liability protection to promoters, separate legal entity, easy transferability and ability to take on investors or partners and scale up operations.
  • Selling on flipkart as an LLP or Partnership: A flipkart seller can also be a partnership firm but limited liability partnership is preferred as it provides limited liability protection and easy transferability, separate legal entity and other documents to become a flipkart seller.
  • Selling on flipkart as a trust of foundation: Trust and Foundations can also become a seller on flipkart. Documents similar to the above documents must be provided in the name of a trust or foundation to establish a legal identity and address of the trust/foundation.

On registering a suitable business entity, tax registrations must be complied with, the following tax registration and bank account details must be required:

  • Business name
  • PAN – PAN card of an individual or private limited company or a partnership.
  • TIN – TIN number is also known as VAT number/ Sales tax number/ CST number in the name of the business.
  • TAN – TAN is required for tax reduction at source (TDS)- in the name of the business.
  • Bank account name
  • Bank account number
  • Bank IFSC Code

 

Once the promoters of the business have provided the above information, documents and registrations, the business can commence selling its products on flipkart. The business can set up the store front and list product to sell on flipkart. 

If we talk about other e-commerce sites then to get associated with Snapdeal, you just need to visit the Snapdeal website "http://Snapdeal.com" and click on the "Sell on Snapdeal" tab available at the top right corner. Or either, you can give a missed call to their Toll Free number of Business Development team -1800-200-3988. They will approach you and help you with the On-Boarding process.

Sellers need to pay Marketing Fee (depending on category of the product). Snapdeal has partnered with 90% of leading Courier Companies. These courier partners pick the parcels from sellers and deliver them to customer.

The profit margins vary based on the product category and the marketplace. Here's a quick look at the charges:

These are the documents you would need for the major platforms:

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