How Online Shopping Portals like ShopClues are mak
Online shopping portal ShopClues.com is not doing well compare to its competitors. Even then they are making money. How? Lets understand...
The challenging part for online shopping portals nowadays are not to sell maximum products, but to sell products cheaper than its competitors. Even if they don't have the stock, they display and advertise in other popular sites to attract online buyers.
Before I tell you how ShopClues is making money, let's understand how these online shopping portals are working. They have just created a platform to sell and invite shopkeepers, dealers, resellers to sell their products on their platform. The dealers have to share their products and details along with the quantity they are having in stock. Once a customer buys and paid for any item, these online shopping portals transfer the money to dealer's account after deducting their commission ranging from 4% - 20% depending on the types of items. As per the policy, they should transfer the money within a week.
Further, in case, if any of the item showed in stock in the portal which dealer fails to deliver, they charge a penalty amount to the seller.
We are one of the victim of ShopClues. When they approached us to register on their portal, we did register and posted some of our products with limited stock for a try. We found their commission comparatively higher, so we quit all our stock and stop selling with them.
Recently (on 29th April, 2016), their representative Mr. Abhishek contacted us and asking if we have an item in stock which we had once sold through their portal (Epson MFP L210) . But we denied as we don't keep obsolete items. The explanation he gave me that they have advertised this model in much lower price than their lowest competitors. But now unable to arrange the product in that rate to fulfil the order. He requested me if I can find out from my source and inform him by the evening. After contacting my sources, I found the rate they have quoted is much below our buying cost. Even the wholesaler doesn't have in such rate. So, I SMS him accordingly and informed that no one has this obsolete product.
Couple of days later, we found that our ShopClues account has modified on 29th April, 2016 and the stock had been updated in the damn cheap rate without login from ourside. I was shocked!!! Since, last 6-8 months, I didn't login to their portal. And after their employee's call, on the same day, the portal got updated and all our sold items are now showing available for sale and all the stock got updated.
On the next day, i.e., 30th April, 2016, I got an email that as we are failed to dispatch the order, we will have to pay the penalty charges due to the lose of nonfulfillment of the order. And now everyday we are getting email that some new order/s is/are pending in cheapest rate and if we don't fulfil the order, we will have to pay penalty charges. This is a pure case of cheating vendors as well as customers and misusing their server authority along with users' portal authenticity.
This is a pure sign of bad practice of promoting online shopping site by offering much lower price than manufacturers' selling price just to attract customers. And when customer orders, they either unable to supply or modify their vendor's account and charge them on not fulfilling the order, similar in my case.
Therefore, it's my recommendation NOT TO DEAL WITH SHOPCLUES AND STAY AWAY FROM GET CHEATED. We are no more with ShopClues. I request you to forward it to your network and warn all your known vendors as well as customers. I'll also share it to my Social Network as well as other ShopClues' vendors and spread it to the maximum so that it can reach to the ShopClues' Decision Making Authorities. more
The challenging part for online shopping portals nowadays are not to sell maximum products, but to sell products cheaper than its competitors. Even if they don't have the stock, they display and advertise in other popular sites to attract online buyers.
Before I tell you how ShopClues is making money, let's understand how these online shopping portals are working. They have just created a platform to sell and invite shopkeepers, dealers, resellers to sell their products on their platform. The dealers have to share their products and details along with the quantity they are having in stock. Once a customer buys and paid for any item, these online shopping portals transfer the money to dealer's account after deducting their commission ranging from 4% - 20% depending on the types of items. As per the policy, they should transfer the money within a week.
Further, in case, if any of the item showed in stock in the portal which dealer fails to deliver, they charge a penalty amount to the seller.
We are one of the victim of ShopClues. When they approached us to register on their portal, we did register and posted some of our products with limited stock for a try. We found their commission comparatively higher, so we quit all our stock and stop selling with them.
Recently (on 29th April, 2016), their representative Mr. Abhishek contacted us and asking if we have an item in stock which we had once sold through their portal (Epson MFP L210) . But we denied as we don't keep obsolete items. The explanation he gave me that they have advertised this model in much lower price than their lowest competitors. But now unable to arrange the product in that rate to fulfil the order. He requested me if I can find out from my source and inform him by the evening. After contacting my sources, I found the rate they have quoted is much below our buying cost. Even the wholesaler doesn't have in such rate. So, I SMS him accordingly and informed that no one has this obsolete product.
Couple of days later, we found that our ShopClues account has modified on 29th April, 2016 and the stock had been updated in the damn cheap rate without login from ourside. I was shocked!!! Since, last 6-8 months, I didn't login to their portal. And after their employee's call, on the same day, the portal got updated and all our sold items are now showing available for sale and all the stock got updated.
On the next day, i.e., 30th April, 2016, I got an email that as we are failed to dispatch the order, we will have to pay the penalty charges due to the lose of nonfulfillment of the order. And now everyday we are getting email that some new order/s is/are pending in cheapest rate and if we don't fulfil the order, we will have to pay penalty charges. This is a pure case of cheating vendors as well as customers and misusing their server authority along with users' portal authenticity.
This is a pure sign of bad practice of promoting online shopping site by offering much lower price than manufacturers' selling price just to attract customers. And when customer orders, they either unable to supply or modify their vendor's account and charge them on not fulfilling the order, similar in my case.
Therefore, it's my recommendation NOT TO DEAL WITH SHOPCLUES AND STAY AWAY FROM GET CHEATED. We are no more with ShopClues. I request you to forward it to your network and warn all your known vendors as well as customers. I'll also share it to my Social Network as well as other ShopClues' vendors and spread it to the maximum so that it can reach to the ShopClues' Decision Making Authorities. more
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Let there be online shopping, but in case of cheating let there be stringent rules for punishment. more
Jul 14
Grahak suvidhakendra patna (A Pilot Project of Deptt. of Consumer Affairs,Govt. of India,New Delhi), kindly contact :- 0612-2525222(grahaksuvidhakendrapatna@gmail.com) We are providing Pre and post purchase advise to Consumers, We help in drafting of complains on behalf of the consumers for filing in Consumer Court. more
May 30
We are also vendor on shopclues we purchased hooded t-shirts in bulk after the company agreed to provide transfer pricing but after some times they block our products without information and without assigning any reason our accounts assistant stop taking our calls and mails were not responded. We suffer huge losses. Now we ignore this site also request others be careful while dealing with them. Our experience is online selling is very risky only eCommerce company are earning vendor are looser. Please be careful it is very loss making to deal with. more
May 21
This is clear cut cheating.There should be a law to punish such cheats.Without written permission from the supplier,the dealer should not advertise.If mutual trust is taken advantage of by either of the parties,ultimately,the trade will collapse!This is a very bad thing with our people-whenever some facility is made for common good,considerable people try to take advantage from the lacuna in the system.Same is the case with Indian democracy too! more
May 18
