LIGHTHOUSE. Flipkart tidbites for you. What s new on Flipkart? What has improved on Flipkart? Goods and Service Tax Glimpses of the Future

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1 LIGHTHOUSE Flipkart tidbites for you Flipnews - March 2017 What s new on Flipkart? What has improved on Flipkart? Goods and Service Tax Glimpses of the Future What s New on Flipkart? 02 What has Improved on Flipkart? 05 Goods and Services Tax 06 Glimpses of the Future 08

2 MARCH 2017 We hope the month of March has brought in more colours to your business. As summer approaches, we hope your profit rises with the temperature. Thank you for the amazing response towards our February Newsletter! We are back with the March edition of Lighthouse to give you a dose of what s happening inside Flipkart. WHAT S NEW ON FLIPKART? New Rate Card We introduced the new Rate Card with reduced fixed fee, closing fee and shipping fee last month. This has enabled sellers to lower their cost of doing online business. As a result, a lot of sellers have reduced their product prices and passed on the benefits to customers. These sellers have seen a huge boost in visibility and growth in sales. If you haven t taken advantage of the new Rate Card by reducing prices, then you might miss out on Sales and the opportunity to move up the tiers. Lowering your prices will help you lower your returns as well. So what are you waiting for? Click here to reduce prices. Summary Fixed Fee Reduced to Rs 10 (Rs 15) for selling price <= Rs 500 Rs 20 (Rs 30) for selling price > Rs 500 and <= Rs 1000 Rs 40 for selling price > Rs 1000 Collection Fee Reduced to For COD Rs 15 (Rs 25) for order value <= Rs 750 2% for order value > Rs 750 For Prepaid Reduced to 2% for order value <= Rs 750 2% for order value > Rs 750 Forward Shipping Fee Reduced for most of the weight slabs

3 MARCH 2017 This (Rate Revision) is a welcome move from Flipkart. This only shows that customer benefit is number one priority in the quest to profitability. Also, a testament of how scale and synergies can make you push competitiveness and profitability, while bringing costs down for the whole online ecosystem. Brands like Campus Sutra will benefit and will pass on the benefit to our consumers. - Aditya Agarwal, CampusSutra Flipkart Gold Seller Lifestyle Events Events are a great way to connect with sellers and give them an overview on Flipkart s marketplace progression. Leaders travelled to different cities and met sellers to discuss upcoming plans and ideas for business growth. Flipkart events are an open stage for sellers where they can associate with pioneers, recount their stories, get their issues addressed, and understand the intricacies of running a successful business in Lifestyle category. Here s a snapshot of the events: 120+ Women category sellers attended Surat event 150+ sellers attended Delhi event Topics covered - Payments, Returns, customer frauds, Dashboard experience covering sales, bulk catalogue upload and many more 200+ sellers showed interest towards Flipkart Fulfilment and Smart Fulfilment program.

4 MARCH 2017 Electronics Sale The recently concluded The Flipkart Electronic Sale was, needless to say, grandly rewarding for the sellers. With attractive discounts of up to 60%-70% and exceptionaly smooth order processing, sellers were able to make the most out of it. More than 15 Lakh products were sold More than 600 Crore GMV achieved After the introduction of the new Rate Card, I m very happy to see many sellers reduce their prices and pass on the benefits to customers. These sellers are witnessing an increase in their sale numbers and growth in business. - Nishant GuptaDirector

5 MARCH 2017 WHAT HAS IMPROVED ON FLIPKART? Focus Group Discussion Flipkart has worked out many different ways to connect with sellers. One such way is through Focus Group Discussion (FGD), where few selected sellers are invited to be a part of a discussion with leaders. Sellers talk about their issues and the leadership teams try to address their concerns immediately. Sellers are also given a sneak peek into the new product launches. We conducted two sessions of FGDs in March and had very insightful and fruitful discussions with our sellers. One of the sessions was on Listings and below are a few points raised by our sellers: Mismatch between Flipkart and sellers size chart More ways to explain product features Weight slabs fluctuate on regular basis We are working to resolve the key pain areas that we gathered from these sessions. Seller Home Page To make things easily accessible and user friendly, we keep on enhancing the seller dashboard. The new homepage will give sellers an outline of their business performance, including an overview of all important metrics such as payments, inventory, sales, and much more. Here you will be able to get an overall business insight with just a single look.

6 MARCH 2017 Goods And Services Tax What is GST? GST is a comprehensive indirect tax levy on manufacture, sales, consumptions of goods and services. The objective of implementing GST is to merge all indirect taxes into one single tax structure at both: national and state level. It will be effective from July 1, Latest update Four GST bills were passed on March 29, 2017 to fasten the full-fledged implementation of GST July 1, 2017 onwards. The following bills were passed: The Central GST Bill, 2017 The Integrated GST Bill, 2017 The GST (Compensation to States) Bill, 2017 The Union Territory GST Bill, 2017 "Today you have tax on tax, you have cascading effect. When all of that is removed, goods will become slightly cheaper". -Arun Jaitley- Finance Minister Benefits of GST Integrated tax will allow logistic to surpass state borders, which will save enough time and cost of inventory Implementing GST will bring 12-14% drop in cost of capital goods due to input tax credits Goods manufactured in India will become cheaper Overall GDP will get a boost Because of its transparent nature, GST would be easier to administer.

7 MARCH 2017 Steps to get GSTIN number 1 2 Visit and create username and password using your provisional ID (provided by State Government of India) Login to GST portal using your username and password, Fill the enrollment application with required details, Verify the auto populated detail, Provide your digital signature 3 4 Submit the enrollment application and other required documents. Once accepted, an ARN number will be generated and your application status will show as Migrated On appointed date, you will receive your GSTIN number Updating GSTIN on seller dashboard 1 2 Go To Manage Profile -> Business Details-> Click on Edit Enter GSTIN number and document -> Click on Save Tagging your listings with HSN Code 1 2 Login to seller profile-> Go to Listings Select Edit Selling attributes-> Enter HSN number. We have launched our GST Genie program which will help sellers seamlessly transition to the new tax structure.

8 MARCH 2017 GLIMPSES OF FUTURE Seller Events We will be conducting seller events in 6 cities in April for our top sellers. Flipkart leadership teams will be interacting with sellers and discuss about the new Rate Card and Tiering structure. Sellers will also be given updates on GST and how to be compliant. We will also be talking about the new product launches and giving tips to sellers to grow their business. The dates for the events are given below: Delhi Bangalore Hyderabad 7th 11th 12th Jaipur 19th Mumbai 20th Kolkata 25th Call back button Through the new Call back button feature, sellers will now get a call back within 30 minutes from the Flipkart support team, offering the best solution to their queries. This will significantly reduce their time and energy required to resolve queries. We are fully prepared to make the transition of sellers to GST a smooth one. I would recommend sellers to watch out for communication from us on the various training activities we will be rolling out. KEEP IN TOUCH WITH US Show us some love on Tarana Tyagi Patil - Senior Manager