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Club Factory: A New Challenger in the Indian e-commerce Arena

In India, Flipkart, Amazon, ShopClues, Snapdeal, and Myntra are considered top 5 e-commerce companies. However, of late, a new entrant is making a lot of buzz – Club Factory. Although, Club Factory has been operating in India since 2016, it recently gained the spotlight when it announced that it will charge 0% commission from its sellers. Yes, Club Factory is the first marketplace in India that charges 0% commission from sellers – during the times when other ecommerce platforms charge hefty margins of up to 25%. Club Factory is also making significant investments in the infrastructure and technology for both buyers and Indian businesses. 

Fun Fact: Club Factory was the most downloaded Android App in September 2019.

In this article, let’s take a closer look at how Club Factory fares against Amazon – the incumbent in e-tail, from the seller’s perspective. In the table below we have tried to demonstrate the pros and cons of selling on Club Factory. However, you must note that as Club Factory is relatively new in India, many rules and policies may change in future. Let’s take a look now: 

Club Factory Amazon

Platform Commission

  • 0%

  • Flat 2% Payment Gateway Fee

  • Category Dependent

  • Up to 25%

Closing Fee

  • Zero

  • Category Dependent

  • Up to Rs 25

Return Shipping Fee

  • Rs 90 per return

  • None

RTO Charges

  • To be borne by seller

  • No RTO charges

Fee Structure

  • Flat & Simple

  • Easy to Calculate

  • Layered & Conditional

  • Difficult to Calculate

Payment Terms

  • Weekly frequency

  • Fixed Payment Dates (5th, 12th, 19th ,26th )

  • Certain Reserve deduction

  • Weekly or Bi-monthly

  •  No Fixed dates

  • Uncertain Reserve deduction

Fulfillment Options

  • No self-ship

  • Shipping completely outsourced

  •  Nothing like FBA at the moment

  • Self-Ship option available

  • Platform owns logistics (Easy Ship)

  • FBA option available


  • No PPC option yet

  • Established PPC system

Return Window

  • 9 days for returnable categories

  • 30 days for most categories

Refund Policy

  • Return & Refund request to be reviewed by seller

  • Refund refusal possible

  • Sellers can exercise more control

  • Auto Refund on most Easy Ship and FBA orders

  • Sellers’ control extremely limited

It will be interesting to look at how and whether Club Factory flourishes in India by gaining the trust of the sellers and buyers alike. What’s your take on this new emerging marketplace? Let us know in the comments.

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Fauzia Hassan

Fauzia is a Marketing Manager at Bridge2Business. With years of experience in e-commerce consulting she is a specialist in Amazon Sales growth.

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