Zomato<\/a>, which charge 25% to 35% commission, this is reasonable, Pai said.<\/p>\n\n\n\n\u201cThe commissions charged by the two (Swiggy and Zomato) are steep,\u201d he said.<\/p>\n\n\n\n
While Zomato did not respond to ET\u2019s queries, Swiggy denied charging 35% commission.<\/p>\n\n\n\n
In a statement over email, a Swiggy spokesperson told ET, \u201cWe would like to clarify that the 35% transaction cut is untrue. Swiggy\u2019s commission fees are structured in a way that gives restaurant partners options to find what works best for their business.\u201d<\/p>\n\n\n\n
Commissions for restaurant partners are arrived at an individual restaurant level and are in line with factors like average order value, delivery costs, delivery toolkits and other costs that are incurred, the spokesperson said.<\/p>\n\n\n\n
\u201cThe commission we charge is a function of the value we generate for the restaurant and is mutually agreed with the restaurant partner prior to being executed in the form of an agreement,\u201d he said. \u201cWe confirm that we do not and have never historically charged 35% commission for any restaurant.\u201d<\/p>\n\n\n\n
However, grocery margins are laser thin, Pai said.<\/p>\n\n\n\n
\u201cIt is a challenge if commissions ranging from 5% to 6% are charged. That is why seller apps may not be charging anything in this segment,\u201d he added.<\/p>\n\n\n\n
In the groceries segment, four seller apps barring GrowthFalcons \u2013 Digiit, GoFrugal, eSamudaay, and Seller App \u2013 are live.<\/p>\n\n\n\n
\u201c3% plus GST comes to around 3.54%. Anything you charge must be less than 7% in the grocery segment,\u201d Pai said.<\/p>\n\n\n\n
\u201cOur target is to help small businesses get incremental business at lower cost. For example, cloud kitchens don\u2019t have dine-in facilities and are majorly dependent on Swiggy or Zomato, which is why they\u2019re charged up to 35% commissions for online orders. So, they\u2019re looking for a network like ONDC and GrowthFalcons to come in and get incremental business with lower commissions. 10% is a no brainer for the merchants. My conversion rate to any cloud kitchen is 99% at 10% commission,\u201d he said.<\/p>\n\n\n\n
At least 60 merchants were onboarded online with no onboarding fee, but only a transaction commission, Pai explained.<\/p>\n\n\n\n
\u201cThere is no markup on food which the customer or merchants bear the brunt for. End consumers are charged less, and merchants are happy with lower commissions,\u201d he said.<\/p>\n\n\n\n
eSamudaay.com is a network on the seller\u2019s side. Any seller can onboard on the app.<\/p>\n\n\n\n
\u201ceSamudaay charges Rs 200 per month for sellers and Rs 100 a month for delivery partners,\u201d said founder-CEO Anup Pai.<\/p>\n\n\n\n
There also needs to be someone to manage the marketplace: the customer experience, the delivery orchestration, the transaction management, the dispute resolution, the marketing of the marketplace, and the education of the customer, irrespective of the number of buyer apps and seller apps. This has been localised at the scale of a district in the case of eSamudaay, he said.<\/p>\n\n\n\n
\u201cThere are private companies that are getting incorporated at the district level, creating a super app framework \u2014 a marketplace. Multiple sellers of multiple categories can onboard themselves, and there is a marketplace manager for all of it,\u201d he added.<\/p>\n\n\n\n
Source : https:\/\/retail.economictimes.indiatimes.com\/news\/e-commerce\/e-tailing\/the-a-to-z-of-ondcs-commission-structure\/93992447<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"There needs to be someone to manage the marketplace: the customer experience, the delivery orchestration, the transaction management, the dispute[…]<\/p>\n","protected":false},"author":1,"featured_media":5071,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-updates"],"aioseo_notices":[],"a3_pvc":{"activated":false,"total_views":0,"today_views":0},"_links":{"self":[{"href":"https:\/\/apkwebtech.com\/site\/wp-json\/wp\/v2\/posts\/5070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/apkwebtech.com\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apkwebtech.com\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apkwebtech.com\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/apkwebtech.com\/site\/wp-json\/wp\/v2\/comments?post=5070"}],"version-history":[{"count":2,"href":"https:\/\/apkwebtech.com\/site\/wp-json\/wp\/v2\/posts\/5070\/revisions"}],"predecessor-version":[{"id":5123,"href":"https:\/\/apkwebtech.com\/site\/wp-json\/wp\/v2\/posts\/5070\/revisions\/5123"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apkwebtech.com\/site\/wp-json\/wp\/v2\/media\/5071"}],"wp:attachment":[{"href":"https:\/\/apkwebtech.com\/site\/wp-json\/wp\/v2\/media?parent=5070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apkwebtech.com\/site\/wp-json\/wp\/v2\/categories?post=5070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apkwebtech.com\/site\/wp-json\/wp\/v2\/tags?post=5070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}