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The current state of e-commerce is booming. Websites like Flipkart have entirely changed the way that people shop throughout the nation. New business models like same-day card delivery or cash-on-delivery have also increased the volume of online purchases.
Generic or store brands are frequently perceived as having lower quality, nutritional value, or overall construction than their more expensive counterparts. But in reality, most "generic" goods share the same components and manufacturing processes as their more expensive counterparts. Most of the time, marketing tactics rather than the products themselves make the difference.
On average, Flipkart receives more than 80 lakh page views daily and sends out more than 5 million packages monthly. Consequently, selling as a generic brand seller on Flipkart is a fantastic business opportunity. This blog lets you learn all there is to know about how to sell generic products on Flipkart.
Understanding a Generic Product
A type of consumer product is referred to as "generic" if it is available on the market but does not have a well-known brand name or logo because it is typically not advertised. Due to the absence of promotion, which can raise the price of a good or service, generic brands generally are less expensive than their brand-name counterparts.
Particularly prevalent in the food and pharmaceutical industries, these brands are created to serve as alternatives to more expensive brand-name products. They tend to gain more traction during economic downturns.
These brands are distinguished by their minimalistic packaging and straightforward labels. Generic goods are identified solely by their traits instead of brand names. All of this contributes to the product's price remaining remarkably consistent.
Generic vs Branded
The "Label" plays a significant role in consumers' purchasing habits. Whether a customer buys "branded" or "generic" goods significantly affects their preferences and levels of satisfaction. So which one offers sellers a better profit margin?
Bifurcating the terms is essential before concluding.
A specific manufacturer produces branded goods under a well-known or well-recognized name. When you buy Samsung smartphones or Adidas shoes, you are buying "branded" products.
Generic:
This is used for items without labels, meaning that neither the manufacturer's name nor the name under which they are selling their goods is known. Although they are also referred to as "generic," "private label," or "generic," goods produced by local small businesses that are not yet well-known on the market are also known by these terms.
In other words, the term "generic" does not always refer to a product whose label is obscure; instead, it relates to a developing brand. "Branded" products have some advantages over "generic" products. For instance, you are choosing what you believe to be best for you when you purchase a tube of toothpaste bearing the brand name "Colgate."
The brand name alludes to a lengthy history of outstanding quality, dependability, and client satisfaction connected to the title since its inception many years ago. A "Brand's" value is increased by the history and story that go along with it. In the retail world, "brand value" is essential.
What should the "private label" producers and retailers do if the brand value is so significant? Why not do away with their labels and only market the well-known brands? No!! It doesn't work like that. Creating "Brand Value" for yourself is what they can and ought to do.
The best course of action is to brand one's products in original and creative ways. And branding your label has never been so simple thanks to the booming e-commerce sector, including Flipkart. Smart sellers make a name for themselves by promoting themselves with targeted marketing and an unmatched reach. Regarding e-commerce, most small-scale vendors rely on well-known and well-liked e-commerce platforms to connect with their potential clientele and generate sales.
However, these platforms come with some difficulties. As an illustration, current e-commerce platforms help their small-scale vendors by assisting with marketing and enticing consumers to try out these new labels.
But they do not advertise the brands; they promote the products. Customers hardly ever learn about the seller or the manufacturer with their system. In other words, they handle the marketing but not the branding. Platforms like Flipkart, on the other hand, give you the option to brand your products and improve your marketing to guarantee high sales.
Why are marketplace sellers better off selling generic goods?
There is no chance for you to develop a brand persona before the sale on a significant marketplace, aside from the product itself. The “buy now” box is what drives everything on Flipkart. All a customer has to go on when they see your logo on Flipkart is your rating, your price, and it's a very brief first impression.
Therefore, you will automatically have an advantage in getting positive ratings and reviews if you concentrate on producing or obtaining the best product. The more reviews you receive, the higher you will appear in the Buy Box on Flipkart, increasing your chance of making sales. The only real challenge you face as a marketplace seller is finding the best product, which is why it might be better.
You can develop a significant review base, excellent ratings, and ultimately a valuable brand if you are sourcing products. Your ratings are the only thing that distinguishes you from other marketplace sellers. On Flipkart, this is exceptionally accurate. Your pricing and comments are essential.
Having your brand templates for your listings and descriptions gives you more freedom to build your brand on Flipkart. Still, even if you have the most beautiful listings on the market, they are useless without positive feedback.
People have used Flipkart almost since it was a ’dot com’ startup, and over time, it appears that customers are less likely to leave feedback now than they were a few years ago. You must step up your game with excellent service and an excellent product if you want to receive positive feedback.
How to sell generic products on Flipkart?
There are several options available to companies without a trademark at this time. They have three options: use the IP Accelerator program, submit a separate trademark application while waiting, or do not use the brand registry program. But do you have to endure this suffering? Why not develop a niche and make money selling generic goods? Simply follow the instructions listed below.
1. Build Your Seller Account on Flipkart
To sell generic goods on the Flipkart platform, a person or business must register as a Flipkart Seller. The Flipkart Seller homepage contains all the information you need to register as a Flipkart Seller.
It only takes a few minutes. One can sign up to be a Flipkart seller by providing information about the products they wish to sell on the website. A certain amount of information must be provided and verified when registering as a Flipkart seller.
Anyone who needs to sell on Flipkart under their legal name and status is considered a sole proprietor. However, a company that only uses one proprietary method has limited access to bank loans, lacks partners or investors, is challenging to transfer, has little room for expansion, and does not offer debt protection to its promoter.
To sign up as a Flipkart seller, a person or business must provide information about their company and the products they plan to sell there.
1. Name
2. Email address
3. Call-in number
4. Address for pickup/business
5. Product categories that the company is interested in selling on Flipkart.
On Flipkart, you can also register as a seller if you are a trustee or a foundation. To incorporate a trust or foundation as its legal identity, you only need to submit documents that are those mentioned above, along with the trust or foundation's address.
2. Listing the Generic Products
The most critical step in terms of the components of online product sales is listing. Outlining the various products you want to sell will help you build your portfolio. Then, you must showcase your offerings by uploading each product's specifics, including its information, description, price, and available variations.
Customers anticipate that your product will be packaged descriptively when they purchase it. Even though the product is generic, they would still want it to be of the highest quality.
When shopping online, customers prefer access to all available product information. Based on the information given, they then choose whether or not to purchase it. Additionally, it helps clients compare their options and pick the one that best suits their requirements.
You must provide as many specifics as possible when listing your products to gain a competitive advantage.
1. If the descriptions are thorough, customers are assured of having all the information while shopping. As a result, it might boost your sales.
2. The more information that is made available about your products, the more visible they become.
3. Transparency may make it easier to get favorable ratings and reviews from customers. Additionally, it helps promote the product through word-of-mouth marketing and customer loyalty.
Product listings on Flipkart are free. It costs nothing to access the online catalog listing. To streamline the listing process, Flipkart gives sellers three options for listing their products and building their portfolios.
1. "Listing," "My Listings," and "Add New Listings" can all be chosen from the menu.
2. Select one of the three strategies listed below:
3. Create one listing.
4. Update listings in bulk.
5. Adopt an existing listing as your own.
6. You must add the details or specifications for the listing you want to upload. The listing procedure has to be finished for the seller to begin selling on Flipkart. They can, however, use this as a springboard to start their path to success.
3. Don't Discount the Importance of Quality Content
Consider creating a content website for a broad range of your products. What might bind them together? Some goods may potentially support entire websites based on just one or two. This is something that many incredible shops do, where they only market one item.
You can be sure that those websites have tons of engaging content that will draw visitors and turn them into paying customers. The use of affiliate links for books by many authors already accomplishes this.
However, there are times when the website's content is so valuable and compelling that the author may be seriously undervaluing their work by only linking to one book when they may also be making money from related products.
Installing an e-commerce plugin allows you to start selling directly from your content sites as they get more popular and trafficked, giving you commission-free sales from your venue while also taking some of the sales from marketplaces. The 10-15% that marketplaces typically charge is yours to keep so that you can rejoice.
4. Shipment of the Product
You can systematically organize your warehouse with the aid of Flipkart Smart Fulfillment. They also assist with the maintenance of your logistics, efficiently store your products, and deliver them to your customer via a Flipkart logistics partner. Accepting intelligent construction standards is all that is necessary to take advantage of the benefits.
This boosts revenue while lowering operating expenses overall and return on investment for your company. Additionally, it allows you to drive lots of traffic to your website. Your listing will gain from this, and you'll be able to get an F-assured budget—a mark of dependability and excellence. Additionally, it will lead to higher tiers and sales for you.
If your inventory is meticulously organized, you will also experience fewer returns. The most important aspect is how quickly customers receive your products. Retailers can rely on Flipkart's Smart Fulfillment approach if they are concerned about rigid packaging. Your products will be in good hands, and you can be sure of that.
Sellers of particular product categories, like furniture, expensive items, and artwork with substantial frames, may be able to fill orders using Self-Shipment Shipping product classes. Flipkart does not directly assist sellers. Packing, shipping, delivery, and returns are all included in these costs.
Sellers may delegate the management of a similar transaction to a third party. Make sure your items are thick bubble wrap to prevent bending or damage during shipping. The remaining responsibility is yours if it does.
The Vendor's sole and exclusive responsibility is to ensure compliance with the Self-Ship Fulfillment policy's Code of Conduct by its supply partners. The seller is responsible for ensuring that the product is delivered to the customer within the predetermined time frames. Such orders might include a service or facility if the item is returned in an unusual circumstance.
The benefits of fulfillment requirements include a reasonable budget, efficient order processing, and stringent quality control. It offers premium packaging materials and ensures a secure, user-friendly payment system. A product must perform significantly better than the benchmark.
Local, Zonal, and National are the three divisions of the shipping process.
1. Local refers to an intra-city shipment of goods within the same city.
2. Zonal: The products are shipped within the east, west, north, and south borders of the zone, which is designated as the Interzone.
3. National: The shipping of goods across zones is referred to as "Interzone."
5. Promoting Your Generic Product
You can use a few strategies and tips to increase the success of your Flipkart sales. Some of them consist of:
1. Utilize Product Listing Advertisements (PLAS), which will enable you to have your products featured on particular pages.
2. Become a Flipkart Advantage seller by signing up. Simply stock your products with Flipkart using this method. They will store, package, deliver, and even deal with returns using their fulfillment centers.
3. Participate in sales explosions. The spikes in sales at Flipkart are well known for getting a lot of attention, but they also require you to lower your prices, which may impact your margins and result in many orders.
4. Utilize Facebook and Google Ads to attract qualified visitors to your listings. You can hire many people to do it for you for a meager cost if you cannot do it yourself. If you want to create a grand website like Flipkart, you can do it in less than 30 minutes. Start your online business by scheduling a demo with Fynd Platform.
5. Pay attention to the reviews. More positive reviews give your users better social proof. Carefully respond to critical feedback and persuade people to leave you positive reviews. Only by utterly exceeding your customers' expectations can you accomplish this.
6. GST and Tax Policies for Generics
Online marketplaces and sellers have experienced significant changes due to the GST amendment. When paying its suppliers, e-commerce platforms like Flipkart should deduct 1% of the tax collected at the source or deposit the same amount as the seller's GST liability with the government. By presenting the GST monthly returns, the Flipkart seller may claim a credit for the Tax Collected at Source (TCS) that Flipkart has collected.
7. Pay a Visit to Your Performance
In the form of the Seller's Hub mobile app, Flipkart has made selling easier. Real-time information is given on orders, payments, listings, order fulfillment, returns, and other topics. The Google Play Store and iOS App Store offer download links for the app. Additionally, Flipkart has a dashboard for seller analytics that enables them to break down various sell point metrics.
You can visualize the data over a specific period, download data graphs to view offline, return orders and trends, and understand more. You can use the dashboard to spot patterns in your sales trend and aids in pinpointing the cities, goods, etc., that are selling the best.
What Might you Group under "General Need"?
Spending at the supermarket can be reduced by 15 to 30 percent on average by choosing store brands. Why should you always purchase generic versions of what products? It might surprise you to learn more about the products and the factors contributing to price variations.
1. Grain- and cereal-based products
Children who see advertisements on television for high-sugar cereals are more likely to request and consume those brands. The study links young children's eating habits and their propensity to become overweight as they age, even though most parents are not surprised by this. During the most formative years of their lives, their brand loyalty develops.
Of course, marketing and entertaining packaging impact the final price: The average cost of generics in this category, frequently bagged instead of boxed, is about 40% less than brand-name drugs. By switching to generic, you can converse with your child about branding, marketing, and advertising. This conversation may also lead to one about becoming a more competent retailer.
2. Supply Chain and Produce
The FDA stipulates the same production, ingredient, and storage standards for generic versions of common ingredients like flour, sugar, salt, and spices. Apart from obscure production-related details, it's nearly impossible to distinguish these products from one another besides labeling.
For instance, salt is a straightforward chemical compound. There isn't much difference in the recipe between store brand, generic, and name brands aside from the customary addition of iodine.
However, the price variations can be startling: For instance, an ounce of name-brand oregano can cost nearly four times as much as generic oregano, with only the name on the label being different. Another two categories where corporate origin has little bearing on quality or freshness are produce and precut salad mixes. It's wise to disregard those tiny brand-name stickers entirely and rely solely on your senses of smell and sight. If not, you'll end up paying for the sticker with no quality improvement.
3. Cleaning Supplies
A lot of money is spent on advertising to lead us to believe that the newest floor cleaner, bleach detergent, or dust repellent will revolutionize home cleaning. The public will be in awe of how easy it is to maintain a clean home now that they have Product X! It is also feasible.
It does occasionally happen to develop truly innovative products. However, most cleaning products aren't that dissimilar, so generic products might work well for you. All cleaning products, including bleach, detergents, and oven cleaners, are available in generic forms, saving $1 or more per purchase.
You could avoid the household-cleaner section if you're feeling particularly frugal. Instead, look into other options for creating your essential cleaning solutions: With a bit of time and effort, you can complete vinegar, baking soda, and most household tasks.
4. Media and Technology
Make sure you purchase the highest caliber hardware when you spend money on a computer or home theatre system. That requires purchasing pricey parts and audiovisual cables, correct? Possibly not. A set of cables that costs less than $100 won't be able to do anything that those $100 media cables with the gold-plated connectors can.
The ability and effectiveness of cheaper lines to conduct electrons are equal to those of more expensive wires. Doing a little research is worthwhile if you're in the market for batteries. Batteries with a higher price tag tend to last longer than cheaper batteries. The sweet spot is in the middle when it comes to getting the most for your money.
5. Cosmetics and personal care
There is no shortage of beauty brand marketing for everything from eye drops and contact lens solutions to cosmetics and skin care items. The simple fact is that name-brand and store-brand products in this category frequently have minimal chemical differences. Many store brands can offer products that are almost exact replicas of brand-name products for a significant discount.
6. Home appliances and tools
Whether you want to paint your bathroom or build a deck on the weekends, DIY and home improvement stores have built their reputations by offering the tools for various projects. In either scenario, the foundation of their brands is promoting the notion that you can DIY your home to your heart's content.
Home improvement tools sold under the house brand are significantly less expensive than those sold under premium brands. Watch for combo kits that occasionally save 30% compared to purchasing each piece separately to save money when buying these tools in "bundles."
After making your first significant tool purchase, stick with the brand. This allows you to buy subsequent tools without a battery and charger, saving you up to $50 on each purchase, and use a single battery and charger with multiple agencies.
7. Medication
Legal drugs, including prescription and over-the-counter medicines, have some of the strictest laws governing the production and distribution of generic versions. The FDA mandates that all store-brand medications contain the same amount of active ingredients and adhere to the same safety standards as the name-brand drugs they intend to replace.
You've probably noticed a price difference between store-brand painkillers, allergy, and antacid medications. For instance, consumers can save up to 73 percent by purchasing generic versions of over-the-counter medications.
The primary way that store brand medications and brand names differ from one another is in the price. Consequently, why are brand-name drugs so much more expensive? When it comes to research and development, clinical trials, and marketing, they carry the bulk of the work.
Transforming a Generic Product into a Brand!
Each item you sell has the potential to be its own "brand." This is particularly valid if you market your products. You have the chance to build a strong brand within the limitations of markets when no one else sells what you sell. Your brand is strengthened with every positive customer review of your merchandise.
Remember that you will associate the brand with the product rather than the seller. As you know, how many people search for sellers by name on marketplaces? People conduct product searches. Additionally, the more positive the perception of your product, the more positive the perception of your brand.
Since there are so many other sellers of the product, and you're assisting in the branding efforts of the manufacturer and other sellers, it can be challenging to turn drop-shipped products into their brands.
A review may result from a sale you make, but you will diminish its worth. There is a solution to this problem; if you can locate a small manufacturer whose goods aren't listed on marketplaces and persuade them to drop-ship for you, you can pull it off. However, you need to make an effort to maintain your exclusivity because someone will always find out what you are doing and want to copy you.
Additional Guidelines for Generic Shopping
These "store brands," also called "private label" goods, frequently come from the same manufacturer as their brand-name relatives. The packaging of two products may occasionally be the only distinction between them.
However, don't mistake store brand and private label products for generic ones. Generic packaging draws attention to what is inside, frequently with a black moniker on a yellow or white background, such as "chips" or "cola," rather than carrying a brand or store name on its label.
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Frequently asked questions
Yes, you are permitted to sell unbranded goods on Flipkart if you are the product's manufacturer or in possession of a legitimate invoice. The lack of a trademark certificate, bar code, etc., means you lack these things. Be cautious; this does not imply that you can sell imitation products.
Anyone with brand-new, authentic goods is welcome. The GSTIN is a requirement before you can begin selling. PAN Card (Personal PAN for "Proprietorship" business types and Personal + Business PAN for "Companies")
As of right now, Flipkart only allows the sale of goods, not services.
No, having a trademark registered is not required to sell on Flipkart, but doing so is advised to prevent brand hijacking.
Only exempt products can be sold online without paying GST. If you sell items for which GST is applicable, you must obtain a GST number to conduct online business. Even if your annual revenue is less than Rs. 20 lakh, you must obtain a GSTIN.
You must obtain the manufacturers' permission before using their logos to promote the goods you are reselling. Without it, you run the risk of becoming involved in a lawsuit for trademark infringement, especially if your company succeeds and no longer remains unnoticed. Third, there are issues with sales taxes.