Flipkart’s Shopsy Starts Offering Groceries in 700 Cities, Aims to Become Largest Retailer in India


Flipkart’s social commerce app Shopee on Tuesday added grocery as a category on its platform. By leveraging the supply chain infrastructure and technology capabilities of the e-commerce company, Grocery on Shopee claims that it caters to consumers across 700 cities spread over 5,800 pincodes. The new range includes over 6,000 products across 230 categories – from staples and fast-moving consumer goods (FMCG) to various other dry groceries. Flipkart is set to attract users to the platform by offering them a flat five percent commission margin.

Shopsy It is claimed to ensure stringent quality control along with enabling social commerce for grocery shopping using Flipkart’s fulfillment centers and supply chain. The Walmart-owned company has fulfillment centers in various parts of India including Ahmedabad, Bengaluru, Chennai, Coimbatore, Delhi, Hyderabad, Kolkata, Lucknow, Mumbai, Patna and Pune.

With the new move, Shopsy users will now be able to buy value groceries by adding products to their carts and checking out. Users can also add orders to multiple individuals in their network and share grocery items on social media through the app. This enables them to earn a flat five percent commission margin that Flipkart promises to be delivered directly to their linked bank account. In addition, customers are claimed to get savings of up to 50 percent.

Prakash Sikaria, Senior Vice President – ​​Growth, Flipkart, said in a statement, “Grocery is a key consumer requirement and we are committed to making e-grocery affordable for consumers and sellers alike.” “We have been working on reducing the cost of delivering groceries over the past few months. We are happy to announce that we have achieved best in class cost structure which assures us to increase grocery on Shopee.”

Flipkart claims that by introducing the new category, it aims to make Shopee the largest grocery retailer in the country. Looks like the company is planning to take on the likes of Google-backed misho, Reliance Industries’ geomart, and Tata-invested bigbasket,

shop was launched by Flipkart as its social commerce platform in July this year. At the time of its launch, the company did not consider grocery as a category, though it has now been chosen as one considering the growing market for online grocery delivery in the country.

In late November, Flipkart announced that Shopee posted a four-fold revenue growth during the festive period and grew its user base by 3.7x compared to before. app, which is currently . limited to Android device, also managed to cross 10 million downloads Google Play, Flipkart had said that all this growth has mainly come from categories including fashion, beauty, general goods and home (BGMH).

Flipkart claims to offer a zero-commission marketplace model through Shopsy where local and small business as well as individual entrepreneurs can sell products in their locality and among contacts. This model is similar to how Meesho allows small sellers to sell a variety of small-ticket items using the social media platform. This is also in contrast to Flipkart’s native e-commerce platform where customers buy products from various large scale retailers.

according to a report good Social commerce in India has the potential to reach $7 billion (about Rs 53,100 crore) in Gross Merchant Value (GMV) by 2022, by consulting firm RedSeer. The growth of social commerce is also projected New opportunities for resellers and suppliers country in the next five years.