Flipkart Business Model | Bstrategyhub.com
                     Flipkart Business Model | Bstrategyhub.com
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Flipkart’s Revenue Streams
Flipkart accumulates its revenue through a few channels. Let’s see how does 
Flipkart make money? 
How does Flipkart make money?
About Commission StructuresFlipkart makes a percentage cut whenever someone sells their product to a 
customer. Commissions are usually deducted from the original transaction 
value prior to paying out the seller who sold the item.
The commission structures vary from item to item, they are categorized in the 
following;
Low Margin branded categories: 2-5%
High Margin branded categories: 10-25%
Shopping fees (Flipkart Assured Program)
Shopper saves more by availing free deliveries on orders that exceed the value of 500 Indian 
rupees. The saved amounts usually are accumulated and then spent again at Flipkart.
Own Shipping Services – Ekart
It is a department that makes all the deliveries of goods to the concerned consumer.
It costs 50 Indian Rupees for items that are less than half a KG (weight)
Flipkart also makes money using Ekart to ship products of other retailers who have 
customers in India but lack logistical capabilities.
Paid Ads
The e-commerce giant has been generating a lot of money from paid ads since. It launched a 
digital ads platform in 2015, which attracted businesses quickly and was generating nearly $1 
million in monthly advertisement sales within a year. Flipkart is regarded as one of the 
largest digital ads platforms in India.
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