Flipkart’s social commerce app ShopSy added groceries as a category to its platform on Tuesday. Utilizing the e-commerce company’s supply chain infrastructure and technological capabilities, the grocery store in Shopsey claims to meet the needs of consumers in 700 cities across more than 5,800 pincodes. The new category includes more than 6,000 products across 230 categories – from staples and fast-moving consumer goods (FMCG) to other dry groceries. Flipkart Flat is ready to attract users to the platform by offering a five percent commission margin.
Shopsy claims to enable social trade for grocery shopping using Flipkart’s perfection center and supply chain, as well as ensure strict quality control. The Walmart-owned company has its headquarters in various parts of India, including Ahmedabad, Bangalore, Chennai, Coimbatore, Delhi, Hyderabad, Kolkata, Lucknow, Mumbai, Patna and Pune.
With the new move, shoppers will now be able to shop for valuable groceries by adding and testing products to their carts. Users can combine orders for more than one person on their network and share groceries on social media through the app. This enables them to earn a flat five percent commission margin which Flipkart promises to deliver directly to their linked bank account. In addition, customers are claimed to receive up to 50 percent savings.
“Grocery is a major consumer demand and we are committed to making e-grocery equally affordable for consumers and retailers,” said Prakash Sikaria, Senior Vice President – Growth, Flipkart, in a statement. “We have been working for the last few months to reduce the cost of groceries. We are pleased to announce that we have achieved the best in the class cost structure which makes us confident in scaling groceries in our shops. ”
Flipkart claims that the new division aims to make Shopsy the largest grocer in the country. The company appears to be planning to adopt the views of Google-backed Meesho, Reliance Industries’ JioMart, and Tata-invested BigBasket.
Shopsy launched Flipkart as its social trading platform in July this year. At launch, the company did not consider the grocery store as a division, although it has now been chosen as one – considering the growing market for online grocery supplies in the country.
Towards the end of November, Flipkart announced that it had quadrupled its revenue during the Shopsy Festival and increased its user base by 3.6 times. The app, which is currently limited to Android devices, has also managed to exceed 10 million downloads on Google Play. All of these growths come mainly from the categories including fashion, beauty, general merchandise and home (BGMH), Flipkart said.
Flipkart claims to offer a zero-commission marketplace model through Shopsy where local and small businesses as well as individual entrepreneurs can sell products within their area and contacts. The model is similar to the way Meesho allows small sellers to sell a variety of small-ticket items using social media platforms. It is also different from Flipkart’s original e-commerce platform where customers buy products from a variety of large retailers.
According to a report by consultancy firm Redsier, social trade in India is expected to reach 7 7 billion (approximately Rs. 53,100 crore) gross merchandise value (GMV) by 2022. Opportunities for resellers and suppliers in the country in the next five years.