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:
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.