What is Myntra PPMP?
Myntra Pure Play Marketplace is a fulfillment model on Myntra. It is better known as Myntra PPMP. Myntra, one of India’s top fashion ecommerce platforms has various fulfillment models. The most prominent ones are Myntra JIT and M-Direct. Compared to these two models, Myntra PPMP offers a lot more. So let’s begin with the basics.
What are the Myntra JIT & Myntra FBM model?
Myntra JIT, also referred to by sellers as the PO model, involves Myntra issuing a bulk purchase order to sellers for multiple items. For example, say 50 customers place an order for 50 items (belonging to a seller) on Myntra. Now Myntra will issue a bulk purchase order for these items to the seller. Once items have been received at the Myntra hub, they will be sorted and repacked as per the client’s address, and sent out. Myntra FBM is similar however, instead of a PO, Myntra raises a Stock Transfer Order to the seller.
- The benefit of this model is that the customer/order level fulfillment is done by Myntra.
- However, it is not very flexible and the seller has less control over growing his business.
- POs are issued with a fixed cut-off time
- It provides lesser visibility to sellers’ brands and pricing control is limited.
What is Myntra M-Direct Model?
M-Direct was launched to give sellers more control over their ecommerce business on Myntra. The order fulfilment is done item-wise. For example, if a customer places an order for a dress, the seller would be intimated directly via Myntra’s order management system.
The seller then picks & packs the item like a regular marketplace order, including printing shipping labels & invoices. The order would be picked up by Myntra owned logistics or third party logistics (3PL) employed by Myntra, and taken to Myntra’s hub. From here it would be sorted region-wise and delivered to customers. Returns would flow through Myntra’s hub and then back to the seller. When a seller shifts to this model, here are some key changes he will face:
- Using a new Myntra order management system to upload catalogues & approve listings
- Buying packing material and packing products at order level for each customer
- Invest in infrastructure such as sorting tables, laser printers, thermal printers, scanners, laptops and proper warehouse racks and bins. But considering that most online sellers sell on multiple marketplaces, it can be safely assumed they have this infrastructure in place.
- Myntra has significant control over the way your warehouse functions and how you manage your inventory. You have to use their order management system only.
M-Direct on Myntra offers the following benefits to sellers, compared to Myntra JIT.
- It promises better pricing control.
- There are lesser gaps between payment days and quicker payment to gold-tiered customers.
- The name of the seller’s brand/organization is mentioned on the listing.
What is Myntra PPMP?
Many sellers on Myntra have been migrating to Myntra PPMP since its launch. While PPMP is almost similar to M-Direct; there are differences. Sellers have experienced better benefits from PPMP.
Myntra PPMP Fees: A seller pays Myntra, its fixed fees, commission, logistics fees (forward & reverse) and buys Myntra branded and mandated packing material. The pick & pack fee that applies to JIT does not apply here.
Difference between M-Direct & Myntra PPMP
- M-Direct has its own order management system (OMS) – a platform that sellers have to use to catalog, list & sell. However, 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.
- In M-Direct, a seller has to keep a part of the inventory dedicated to Myntra. In PPMP, it’s an open inventory system– meaning there is no need to block inventory. This gives sellers more flexibility with the inventory.
- A seller has to fulfill orders from this blocked inventory for M-Direct whereas that is not the case in PPMP.
The key takeaway from the above is the order management system flexibility that Pretr provides, over & above the benefits of M-Direct.
What are the 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.
Does A Seller Need to Access Seller Portal When Using Myntra PPMP?
Yes. There are certain functionalities that can be managed only via the Myntra Seller Portal. The following are the key ones:
- Uploading of new style catalogs
- Updation of discounts
- Raise tickets for issues
- Performance reports that cover order cancellation data, fulfillment performance, return rates, etc.
- Operational reports include listing, inventory details, and more.
- Financial reports include settlement, commission, and unsettled payment details.
An order management software like Browntape, can give you business analytics insights similar to some of the reports mentioned above.
What Preparations are Required to Migrate to PPMP from Myntra JIT/ FBM?
- Sellers will have to sign up on Pretr and familiarise themselves with the platform.
- In case sellers have their own order management system such as Browntape, they can simply add Pretr as a channel as it is pre-integrated. If Pretr is not yet integrated on a particular system they use, they will need to have their software team integrate it using APIs.
- If the seller doesn’t use an OMS due to a small business scale or Myntra is his only channel of sales; he can directly use Pretr.
- A seller will need to invest in a laser printer, thermal printer, scanner, order sorting & packing tables and proper warehouse racks. An estimated 300 orders can be processed using this set-up.
All in all, Myntra Pure Play Marketplace or Myntra PPMP is a flexible business model by the fashion ecommerce platform. It is the most evolved form of doing business on Myntra currently. Therefore, it is no wonder that sellers are choosing to migrate to Myntra PPMP. Hope the above was helpful in giving you an overview of what Myntra PPMP is and that it helps you make the right decision while opting for a Myntra business model.