As we are seeing online sellers are quitting online marketplaces, but what next?? How to increase sales and maintain same profit even when you not sell online.
When things are out of control, need to search the ways to get benefit from it.
Impact on online market place sellers?
Prices are shooting up with GST, profit margins are coming down, for SME’s marketplaces are supposed to cut TDS irrespective of knowing annual turnover 20lacs reached or not.
Can’t provide discounts like previous, so apparently sales will come down.
For example:
Assuming 18% GST, selling prices as 1500/- with different marketplaces (each column represent each market place)
Selling Price | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 |
Marketplace Commission | -225 (15%) | -225 (15%) | -120 (8%) | -210 (14%) | -225 (15%) | -105 (7%) |
Service Tax on Commission | -34 | -34 | -18 | -32 | -34 | -16 |
Marketplace Payment Fee | -10 | -48 (3.2%) | -10 | -45 (3.03%) | 0 | -68 (4.5%) |
Service Tax on Payment Fee | -2 | -7 | -2 | -7 | 0 | -10 |
VAT | -229 | -229 | -229 | -229 | -229 | -229 |
Shipping (inclusive taxes) | -55 | -50 | -40 | -45 | -50 | -38 |
Net in Hand* | ₹ 945 | ₹ 907 | ₹ 1081 | ₹ 932 | ₹ 962 | ₹ 1034 |
Deductions | -37% | -40% | -28% | -38% | -36% | -31% |
Net In Hand% | 63% | 60% | 72% | 62% | 64% | 69% |
*prices are estimated prices
MRP is 1500/-
Selling price is 1500/-
But seller gets in hand around 1000/-
But with MRP and selling price same he can’t sell more in the online unable to attract the buyers with discount.
If he decrease selling price, he can sell more but profits are coming down.
But how to increase sales with high profits?
Answer is gallideals.com (an offline website for offline buyers and offline sellers).
Gallideals.com won’t sell anything in online, but they help to send customers to door step.
How it works
Gallideals.com display product wise deals, customer will visit product deals and get the address and contact and he walk into store and he see and purchase with 100% satisfaction. (It’s completely free now)
Now take same example when work with gallideals.com
MRP is 1500/-
Selling price is 1500/-
But seller gets in hand 1500/-
From online selling seller gets 1000 without giving benefit to customers
With gallideals.com seller reduce to 1200 also he can sell more
and customer get 300 benefit, both will be happy, with this seller have more profits.