Myntra JIT is a business model where Myntra issues back-orders to sellers, basis orders received from customers.
These orders are grouped. For example, if there are 20 orders for 20 items from a particular seller, these orders are grouped to create one purchase order and issued to the seller. Hence this is popularly also referred to as the PO model.
Pros & Cons
- The seller does not need to handle each customer order separately, it is bulk shipped to Myntra. Myntra sorts and packs orders for individual customers.
- The seller though has less control over his inventory. It needs to be blocked away for requirements from Myntra.
- The seller’s brand is not highlighted in the Myntra listing.
- Other business models have incentives that Myntra JIT does not.
The back-end platform used here is a third-party platform. Sellers need to process it via this platform or can integrate Myntra JIT to their Browntape accounts. This helps them operate their ecommerce business from a single dashboard. Browntape allows sellers to process these back-orders and daily POs via their Browntape account.
Myntra FBM, meaning ‘Fulfilled by Myntra’. While this is also a JIT (just in time) system, there are a few differences.
While it is called a B2C model, as the end-customer is billed, the seller does not pack the items as per the customer. Items are sent to the Myntra warehouse, where they are packed post quality check (QC).
In terms of transfer, instead of a back-order as seen in JIT, it is a stock transfer note (STN)- back-order that is issued by Myntra.
The seller tracks the goods via a gate pass, thus tracking returns becomes easier. It uses a third-party platform for processing; however, this can be integrated with Browntape.
Myntra M-Direct was Myntra’s first shift to “true B2C”. It comes close to other e-commerce platforms that most sellers are used to.
In Myntra M-Direct, a seller has receives orders as per each customer. The seller has to pick, do a quality check (QC) and pack the order as per the customer’s name & address.
The packages are then collected by Myntra’s logistics support and taken to a Myntra warehouse. Here they are sorted as per region & dispatched. It is akin to a hub & spoke system.
A seller has to invest in mandated infrastructure within his warehouse. This includes a packing table, printers, scanners, and Myntra specified packing material.
M-Direct is operational via Myntra’s own back-end platform. Thus the seller has to log into the portal to manage catalogs, listings, inventory, orders.
M-Direct gives a seller flexibility over his inventory, which is not possible on Myntra JIT or FBM.
However, a seller cannot use his own warehouse-management system in M-Direct. This becomes cumbersome for sellers who sell on multiple platforms. It leads to operational inefficiencies.
Myntra PPMP (Pure Play Marketplace) is an evolved fulfilment model by Myntra which allows sellers to operate the way they would in other marketplaces.
- It’s a purely B2C model, where sellers process each order placed by the end customer, themselves.
- Myntra PPMP is managed via Pretr. Pretr is a flexible platform and it allows sellers to link it to their own order management system. Users of e-commerce management software like Browntape can add Pretr as a channel. This allows them to manage Myntra PPMP orders, inventory & more from a single dashboard.
Benefits of Myntra PPMP
- Compared to JIT, a predictable benefit is that there is an assured growth in revenue for the seller due to quicker dispatch time. This is because the seller directly packs and dispatches his products, at an order level. Even cancellation rates reduce due to reduced wait time.
- Myntra offers sellers attractive discounts on logistics, under the PPMP model
- A tiering structure within PPMP gives a seller opportunity to get seller support on a priority basis. Access to faster payments is a possibility.
- Sellers can hold a shared inventory, with a buffer for Myntra- the control on inventory is with the seller.
- Sellers can choose their own order management system & sync them to Myntra using APIs. In Browntape, it’s as simple as adding Pretr as a channel.
You can read more in detail about Myntra PPMP on our blog here.