Blinkit will now hold inventory, sell goods directly to customers
What's the story
Zomato-owned quick commerce company Blinkit is changing its business model. The change will see the company directly selling products to customers and holding inventory on its books. The transition, which was reviewed by Moneycontrol, will come into effect from September 1. Blinkit has already started informing its partners about the upcoming change in operations.
Operational changes
How the new model will work
Under the new model, Blinkit will take over inventory and regulatory compliance. The company will buy products from sellers and sell them directly to the customers as the merchant of record. This change will simplify things for sellers, who will not have to maintain multiple Additional Places of Business (APOBs) under their GST registrations for every state where Blinkit operates.
Business operations
What sellers can expect
Blinkit will transfer the inventory from the seller's books to its own legal entity, Blink Commerce Private Limited (BCPL), and handle all the downstream logistics and taxation. The company said this change is aimed at letting the sellers focus on merchandising while it takes care of operational and compliance complexity. However, despite these changes, Blinkit isn't altering commercial terms for sellers.
Tech upgrades
Blinkit upgrading its seller hub
Along with the operational changes, Blinkit also plans to introduce advanced analytics tools. These will include dark-store level performance dashboards and auto-recall measures for underperforming products. The company is also upgrading its Seller Hub to make it easier for merchants to onboard and scale their businesses. Sellers who agree to the new structure can launch their listings in high-performing stores of their choice.
Transition
Transition to new model will happen in 4 phases
The transition to the new model will happen in four phases, with sellers having until July 30 to opt in. After this date, those who don't agree won't be able to list or replenish inventory. On August 31, Blinkit will transfer the inventory from seller books to its own at the GRN (Goods Receipt Note) or landing price. The final settlement and reconciliation will be done by September 3.