Flipkart, a very giant and well known electronic commerce company is gearing up and preparing to sell the modified range of smartphones by Diwali, a smart move at managing the high return rates of handsets. According to one of the report, Flipkart will be offering three categories of refurbished smartphones, priced at 60-70 per cent of their original value. In addition, GST on smartphones has been set a uniform 12%, replacing varying rates of value added tax levied by states.
The refurbished smartphones will be sold through both, online and offline marketplaces. Flipkart’s in-house logistics arm Ekart will be handling deliveries, ET reported.
According to the report, the company will smartphones from popular brands such as Lenovo, Motorola, Samsung’s ‘on series ‘, Panasonic, Micromax and Sony Xperia.
Commenting on the development, a senior executive in the know said, “Even though Flipkart has of late tightened return norms on mobile phones and only allows replacement in case of a defect, it is already saddled with a lot of return inventory. There are also handsets with minor problems which are replaced. The company plans to get them checked and certified to look and work like new and sell them as Flipkart-certified refurbished handsets. There will be limited warranty as well on such products. The refurbished market in India is mostly unorganised and Flipkart wants to build it.”
“Smartphones is one of the biggest categories for us and we will continue our focus on this. In July alone, we have launched three exclusive models on the platform including Motorola, Panasonic, and Samsung ” said Ayyappan R, senior director and head of mobile phones at Flipkart.
By selling refurbished smartphones, Flipkart is not only planning to gain profit but is also looking to challenge its rival or competitor, Amazon
. This move comes a week after eBay India’s Sale to Flipkart was finalised. With the acquisition, Flipkart hopes to gain access to eBay’s global inventory.