Flipkart accumulates its revenue through a few channels. Let’s see how does Flipkart make money?
Commission Structures
Flipkart makes a percentage cut whenever someone sells their product to a customer. Commissions are usually deducted from the original transaction value prior to paying out the seller who sold the item. The commission structures vary from item to item, they are categorized in the following;
Low Margin branded categories: 2-5% High Margin branded categories: 10-25%
Shopper saves more by availing free deliveries on orders that exceed the value of 500 Indian rupees. The saved amounts usually are accumulated and then spent again at Flipkart.
It is a department that makes all the deliveries of goods to the concerned consumer. It costs 50 Indian Rupees for items that are less than half a KG (weight)
Flipkart also makes money using Ekart to ship products of other retailers who have customers in India but lack logistical capabilities.
The e-commerce giant has been generating a lot of money from paid ads since. It launched a digital ads platform in 2015, which attracted businesses quickly and was generating nearly $1 million in monthly advertisement sales within a year. Flipkart is regarded as one of the largest digital ads platforms in India.