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Flipkart

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by

Kushal Agrawal

on 22 December 2013

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Transcript of Flipkart

Started by
Sachin Bansal
CEO, Co-Founder
Binny Bansal
COO, Co-Founder
in 2007
Investment & Valuation
Funding Rounds : 4 (till date)
Major Funders :
Accel Partners,
Tiger Global Management
Current Valuation : $ 850 Million
Subsidaries :
Flipkart.com, Letsbuy.com,
Weread.com, mime360.com,
chakpak.com
Human Capital
4500+ Employees
2500+ deployed on-field in operations & distribution
Rankings & Popularity
India Rank : 15
World Rank : 287
Source : Alexa.com
Popularity : 0.338% of the total internet users of the world have visited flipkart.com
Product Portfolio
Supplier's Side
Customer's Side
Supply Chain Management of Flipkart.com
Started with Books
Now with movies, music, games, mobiles, cameras, computers, healthcare and personal products, home appliances and electronics, stationery, perfumes, toys – and still counting!
Product Offerings
Over 15 Million Products - Still Counting!
Wide range of products
11.5 Million Book titles
Payment Options
with visit to transaction conversion rate of ~6%
Started by Flipkart
Started by Flipkart
User Interface (UI)
www.flipkart.com
Easy to Navigate | Easy to search |
Easy to Compare | Easy to Order |
Graphical | Non-Graphical
Receipt Generation
Order No. : OD20919120766
This contains all information i.e. Product Code, Date of Purchase, Reference No., Delivery Area Code etc.
Helpful in easy tracking of order !!
* This code is formed after applying filters and unique encryption techniques
Order Tracking
Order No. : OD20919120766
Customer Enters the Order No., and he gets real-time update of the shipment status.
Flipkart
Logistics Agency
Customer
After Sales Service
1. 30-DAY money back guarantee
Unsatisfied Customer
Calls/Connects with Flipkart customer service
Return Order by Logistics partners
Product Replaced or Money is returned in the account
2. e-Wallet feature
Loyal Customer
Deposits more money
Use it for future purchases
* flipkart adds new dimension to its operating cycle
3. Reporting & Analytics
On the basis of your past behavioral purchase
Schemes / Discounts / Offers / Recommendations are generated
4. Reviews
UX
Inventory Stocking
Inventory Management System
Warehouses stocking levels
Frequency of orders of the product
forcasting
Threshold
Product's Inventory
Delivery Centers
Distribution Frame
25 Warehouses
Delivery & Logistics
60
Delivery Centers
Customer Orders
Checked in delivery center inventory
Success! - Sent to Logistics Body
Yes
Checked in nearest Warehouse inventory
Yes
Ordered to the company or sometimes imported
Customer is notified
Underline aim is to reduce the time of delivery
No
No
Yes
Automatic inventory check via Inventory Management System
in overall India
Delivery Time = 1-2 days
Delivery Time = 2-5 days
Delivery Time = 6-15 days
7 Previously, Others converted from Delivery Center
35 Previously, Others newly formed
Purchases & Procurement
Customer Support
Supply Chain Management
Hybrid Structure
Location of the product is identified
Customer's Product Delivery Location
Logistics Body is assigned
Parameters = City, Locality, Type of product, Cost definition, inter-city agreement etc.
Pricing & Margins
Logistics
Priority
Automated Software sends information about the product delivery to these logistics body
No. of Orders served daily > 30,000
Open Loop for VAS
Flipkart Logistics is getting designed in such a way that, other e-commerce websites can outsource delivery to flipkart.
Adding an extra source of income
Inventory Levels
Rare Ordered Products
Direct procurement from companies
Stocked in warehouses & delivery centers
1. Weekly
2. Monthly
3. One-time
4. Urgent
Distributors of these companies delivers the products in respective flipkart's warehouse (as per requirements)
24x7 Customer Support
1800 425 3547
cs@flipkart.com
Toll free phone :
e-Mail :
Delivery Cost = Free, if order > Rs. 300 else Rs. 30 extra.
New Sale | Customer grievances | Other Info
Open Loop for VAS
Flipkart BPO is getting designed in such a way that, other e-commerce websites can outsource customer support to flipkart.
Adding an extra source of income
Credit Period = 14-30 Days
Credit Limit = Varies with products
8 - 35%
On Sale price of Products
Parameter = Brand, Category Margin, Premium margin, Volume, Cost of delivery, operating cost margin.
High Margin Category
Toys, Watches, Beauty & Healthcare, Luggage
Mid Margin Category
Books, TV, Home & Kitchen, Gaming, Belts, Bags
Low Margin Category
Mobiles & Cameras, Computer accessories
Open Loop for VAS
Flipkart pricing is getting designed in such a way that, other e-commerce websites can outsource delivery of several products through flipkart.
Adding an extra source of income
Open Loop for VAS
Flipkart Distribution is getting designed in such a way that, flipkart can become official distributor of several company's products in future.
Adding an extra source of income
Back-end
Front-end
Compiled by
Kushal Agrawal | Eshan Mehra | Abhirat Khanna | Devika Gupta | Sampoorna Sarkar

Mistakes Made
Flipkart did a right thing in acquiring www.letsbuy.com
But in spite of making them rivals of each other and increasing on sales, they integrated each other
Strengths of letsbuy.com was in electronic products and they performed to be a top performer. They were able to make a big loyal customer base in a short time.
Flipkart loose to loyal customer base of letsbuy and its competence appeal.
Full transcript