Priyanka SahayMoneycontrol News
In a late night email on the day of announcing the company's 77 percent acquisition by US-based retail giant Walmart, Flipkart's chief executive officer Kalyan Krishnamurthy informed sellers that there was not going to be any change in the operating process of the company, post this development.
"Flipkart will continue to be a marketplace where sellers from around the country can connect with customers. We will keep making deep investments in technology, innovation, supply chain and business processes to grow the e-commerce market even more in coming years, with the aim to increase the number of people shopping online, and the average spends. Further, Flipkart and Walmart will maintain distinct brands and operating structures post this investment," Krishnamurthy wrote to sellers in a mail.
Moneycontrol has seen the email.
A marketplace model allows companies like Flipkart to act as aggregators to third party merchants who can sell via the online firm's platform. Flipkart claims it has over 1.3 lakh sellers on its platform.
While the commission ranges from one category to another, on an average these sellers pay around 15-20 percent commissions to list their products on the site.Also Read: Walmart-Flipkart deal: Even as the giants shake hands, it's business as usual for Flipsters
"This is a landmark partnership made possible by years of hard work and collaboration among all stakeholders of the e-commerce ecosystem, including our sellers. So, I wanted to write to you personally to celebrate the news, fill you in on what this investment means, and whether there are going to be any changes in your relationship with Flipkart," he added.
This is likely to bring some clarity to anxious sellers, who wanted clarity on the way forward post the Walmart deal.
However there's no immediate clarity on whether or not the business of the sellers will be affected if Walmart plans to bring its own private label products in India via Flipkart.
Krishnamurthy added in his mail that, "Our focus on making our sellers succeed will continue with the same vigor as in recent years. As you know, Flipkart has constantly optimised operations and passed on the benefits resulting from such efficiencies to sellers, thus, empowering them to deliver an even more fulfilling experience to customers. With Walmart on board, we are committed to doing more of the same."
Walmart on Wednesday said it would buy 77 percent Flipkart for USD 16 billion.
The remainder continues to be held by will be held by some of Flipkart’s existing shareholders, including Flipkart co-founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management LLC and Microsoft Corp.
Walmart’s foray into India’s online retail space sets the stage for an American business war against Amazon.com Inc in the world’s fifth largest economy.
Original Source: https://www.moneycontrol.com/news/business/startup/exclusive-flipkart-will-continue-to-be-a-marketplace-for-sellers-to-connect-with-customers-kalyan-krishnamurthy-2566043.html