Seller Online Ecosystems to keep them Hooked

Being in debt to your online digital marketplace is one way to prevent etailers leaving - see Selling your Soul Online

Times of India reports that easy working capital loans — that's the carrot Flipkart is holding out to its 80,000 merchants to stay loyal and stay active. With the peak festival season behind it, Flipkart is switching attention back on strengthening its seller network, crucial for ensuring robust sales. The company is expanding its loan scheme to all its merchants five months after it began a pilot with 250 sellers and disbursed loans worth Rs 50 crore in collaboration with top banks and financial institutions.

Merchant loyalty and engagement have become key factors in India's cut-throat e-commerce industry. Snapdeal and Amazon, too, have launched similar loan schemes for their merchants, seeking to lock in key sellers and encourage them to sell more. Flipkart, India's largest online marketplace by sales, said its loan scheme will give its vendors easier access to loans with basic documentation in 2-5 days.
"One of the biggest problems that our sellers face is that... most traditional banks do not understand the nature of e-commerce business and so they refuse to give out loans without collaterals and high interest rates," said Manish Maheswari, head of Flipkart's seller ecosystem division.

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