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Flipkart, a Bangalore-based electronic commerce portal, is all set to begin the sales of reconditioned smartphones in Diwali this year, as part of a move intended for managing high return rates of handsets. According to reports, Flipkart’s decision of engaging in smartphone re-commerce comes after the company lost its price advantage following the implementation of GST.

The Indian e-commerce is said to have a huge inventory of returned smartphones, many of which have little to no damage at all. In order to make these handsets worth purchasing, Flipkart will have them checked and make them part of Flipkart-certified refurbished devices to be sold on the online marketplace and offline outlets. These smartphones will have a limited warranty, will be categorized into three groups, and will be offered at 60% to 70% of their original pricing.

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Amazon India

Last year, Amazon, Flipkart’s biggest competitor, has officially begun selling used and refurbished smartphones in India. It is trying to capitalize on the country’s growing re-commerce market. Among the brands that Amazon has partnered with are Lenovo, Samsung, OnePlus, Xiaomi, Motorola, and Apple.

The revamped category of Amazon India, include smartphones that are professionally restored. These smartphones look as good as brand new handsets, and the delivery timelines are similar to the brand new products. The revamped smartphones can be bought by the use of usual payment options such as credit or debit cards, cash on delivery and internet banking.

Flipkart’s Other Plans

Aside from selling revamped smartphones through its portal, Flipkart is reportedly looking to team up with suppliers for offline sale of the devices. Its in-house logistics arm, Ekart, will be handling deliveries.

It is said to be in dialogues with suppliers, and plans to sell smartphones from brands like Micromax, Motorola, Lenovo, Panasonic, Sony and Samsung’s Galaxy On series through the offline stores.

Notably, even Amazon India is looking out for opportunities to sell its smartphone through the offline stores. The idea is said to “fill a gap” in its offerings, and the e-commerce company will help new brands with marketing and help increase brand awareness.

Conclusion

Currently, India’s smartphone re-commerce area becomes home to a number of different startups, including Greendust, JustLikeNew, Blubirch, Reboot, Budli, Cashify, and Gadgetwood.

Through the selling of revamped handsets, Flipkart is not only setting to raise its profit margin, but it is also looking to challenge its rival Amazon’s budding hold over the market. This comes a week after the eBay India’s sale to Flipkart was finalized. Flipkart’s hopes to obtain access to eBay’s global re-commerce inventory with the acquisition.

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