Friday, September 25, 2015

How to sell on Snapdeal

Snapdeal founded by Kunal Bahl and Rohit Bansal is India’s largest online marketplace offering more than four million products across a range of categories from over 50,000 sellers. Snapdeal witnessed record amounts of sales during the recently held sale day, crossing Rs. 1 crore of sales every minute. With more and more people shopping online, ecommerce continues to be one of the fastest growing industries with plenty of opportunities. Selling through online marketplaces like Snapdeal, Flipkart or Amazon can help established businesses quickly find customers without having to worry about technology or marketing. In this article we look at how to sell on Snapdeal and Snapdeal seller registration process.

Selling on Snapdeal – Documents & Registration Required

Before beginning to sell on Snapdeal, the business must first become a Snapdeal Seller by completing the registration process and submitting the required documents. If an established business proposes to sell on Snapdeal, the seller registration process can be completed quickly as the business may have the required tax registrations. On the other hand, if the Snapdeal seller is a new business or if the seller would like to use a new entity, certain tax registrations must be obtained prior to selling on Snapdeal.

Business Registration (May not be required for established businesses)

PAN Card, TIN Registration and Bank Account – in the name of the business is required to complete the Snapdeal seller registration process. Therefore, a Private Limited Company or Limited Liability Partnership (LLP) can be started, if an established business entity is not readily available during the seller registration process. Both Private Limited Company and Limited Liability Partnerships offer the promoters limited liability protection  and are a separate legal entity – that can be scaled or transferred. It is however recommended that ecommerce sellers start a private limited company, as it offers the ability to quickly scale up and also easily access bank or equity funding. LLPs on the other hand have restrictions while raising bank or equity funding, and therefore not recommended.

PAN Card

Permanent Account Number or PAN card copy must be submitted bearing the name of the businesses during the Snapdeal seller registration process. Both, Private Limited Company and Limited Liability Partnerships would have PAN Card in the name of the business. Proprietorship’s would have PAN card only in the name of the Proprietor.

TIN Registration

TIN Registration also known as VAT Registration or Sales Tax Registration is required to begin selling on Snapdeal. TIN registration is required for any person or entity selling goods or services in India – both offline or online. Therefore, TIN Registration must be obtained by applying to the relevant State Authorities prior to selling on Snapdeal. Entities without TIN Registration can only sell handicrafts, books, online education or unstitched fabrics.

Bank Account

A copy of cancelled cheque must be submitted to Snapdeal during the Snapdeal seller registration process. The bank account must be in the name of the business. Private limited companies and LLPs can both easily open bank accounts in the name of the business by submitting certificate of incorporation and PAN card. Opening a bank account in the name of the business is cumbersome for a proprietorship, as existence of the business must be proved through other tax or business registrations. More information about opening a bank account in India.

Snapdeal Seller Registration

How to sell on Snapdeal
How to sell on Snapdeal
To begin the Snapdeal Seller Registration process, visit Snapdeal Seller Homepage. During the seller registration process, information such as name, phone number, email and address will have to be provided and verified. In addition to the demographic information, a copy of the PAN card, copy of TIN registration certificate and a copy of cancelled cheque must also be submitted. Once submitted, the documents and information submitted will be verified and approved by a Snapdeal representative.