Nykaa stands out as a premier destination in the e-commerce industry. It is a whole world of unique experiences in beauty and fashion where every click can take you to top-notch products. What truly sets it apart is the authenticity of the products. Unlike many other marketplaces, Nykaa has earned its stellar reputation by carefully curating only the best. This specialty has earned them 35 million monthly active users.
But, how do they maintain this trust and credibility? It has a strict brand evaluation process that ensures only the top-tier brands make it onto the site. The average selling price of products may range from Rs 2,024 on Nykaa fashion to Rs 4,681 on Nykaa. This might seem to be a hefty price tag, but every product justifies its worth with its superior quality.
If you want to improve your growth trajectory, Nykaa is the perfect choice. And the best part? You can showcase products across a diverse range of categories. However, it is important to understand that 6,250+ brands are already selling on this platform, and many of them are international and established Indian brands. Competing against them may take longer than you may expect! But, worry not, we have covered all the necessary details in this blog that can provide a comprehensive understanding to you on how to sell on Nykaa.
By the end of this blog, you’ll learn everything from the registration process, document requirements, commission charge, hidden insights on product listing, and key strategies that actually work to grow on Nykaa. Let’s get started.
Why Sell on Nykaa?
1. Premium Position in the Market
Nykaa holds a premium position in the market, standing out compared to platforms like Purple, MyGlamm, and Myntra. D2C brands might face limitations on platforms like Purple and MyGlamm, as they mostly focus on their own products. However, on Nykaa, you have a real chance to build and grow your brand recognition.
2. Sell High ASP Products
The primary audience of this platform is mainly the upper-middle-class Indian women falling in the age bracket of 18-50 years, who like to invest in skincare, wellness, and trending products. Thus, it is the perfect platform for brands with authentic and high-quality products in the skincare, cosmetics, and fashion categories.
3. Brand Recognition
Selling on Nykaa helps build trust and credibility for your brand, as customers trust the platform and are more likely to try your products.
Nykaa Seller Registration Process
One thing you need to keep in mind while registering for Nykaa is filling out individual forms for every brand that you want to sell on Nykaa. The process may sound hectic, but Nykaa is very specific about the authenticity of every brand. Here is the step-by-step process to register on Nykaa.
1. Fill Out Application Form
Click on the link to fill out this form: https://www.nykaa.com/sellonnykaa/lp. You are required to fill out four forms in total during the entire process to make your account live. Here in this form, you need to provide basic details as listed below –
- Registered Company Name
- GST Number
- Brand Name
- Instagram Account, if any
- Marketing budget for launch
- Website URL, if any
2. Select Product Category
Once you have provided the critical information, the next step is to choose the right product category. You can choose from a wide variety like body & bath, skincare, haircare, etc. You can sell multiple products across these categories; however, it takes solid document work in the backend. If you are selling your own brand, you’ll need to submit a trademark certificate, and if you are selling products from other brands, a brand authorization letter is required.
3. Keep an Eye On Approval
It may take 5-7 business days to get your application approved if all the details and certificate provided are correct. You’ll receive the confirmation email, so keep an eye on that.
4. Cataloging Process
This is the starting phase of the selling process on Nykaa. Here, you need to provide a detailed description of the product, product title, and a high-quality Product image.
Documents Required to Sell on Nykaa
- GST Number
- PAN Card
- Address Proof
- Letter of Authorization
- Trademark Certificate
- Digital Signature with Company stamp
- Cancelled Cheque
- A Current account in a bank
Tips To Improve the Chance of Your Product Listing Approval
Many international brands, such as Charlotte and Huda, and established Indian brands, like Lakme, have a strong presence on this platform, which is why you need to be very careful while listing your products so that they show up to your target audience. These points might help you further-
1. Upload Certificates
If you are a skincare, haircare, or cosmetic brand, you have to submit certificates and licenses associated with the product. For instance, a skincare brand needs to submit the COS-8 form, manufacturing license, and COS-2 form in case you are importing products. In case you claim medical benefits of any product, some additional documents will be required to prove the authenticity of the product.
2. Compliance With Guidelines
Many brands fail to comply with the Nykaa product listing guidelines, resulting in delayed catalog uploading. There are strict guidelines for product listing, thus even a single issue in a product attribute can delay your catalog approval process. So make sure to provide accurate & detailed information of product specification like ingredient lists, medical claims, directions to use, in the product description, title, and images. Make sure that the product description reflects the same information as showcased in the product image, as any discrepancy could lead to rejection of your catalog.
3. Correct Categorization
When consumers search for a particular product, Nykaa shows them the best filtered search results. That’s why correct categorization plays a vital role so that the Nykaa algorithm can identify your products and showcase them in the search results to the end consumer.
4. Bulk uploading
If you have a wide range of products, it could be time-consuming to make your product live, and you’ll have to wait longer to receive payments. Bulk uploading option comes in handy in such a scenario and ensures accuracy.
Although you can apply the above-mentioned tips to it, unlike other marketplaces like Amazon and Flipkart, it has a very selective onboarding criteria where it chooses only a few brands to get onboarded. There could be multiple reasons behind this, like doubt on brand authenticity, product quality, etc. However, with third-party agencies, you can onboard within a few days. Let’s understand how they can help you.
5. Quick Onboarding Via Third-Party Agencies
Third-party agencies like Tenovia, Infobeam solution, and Voovly can simplify your onboarding process. These agencies have onboarding experts who can set up your account, complete the cataloging and listing process, and make your account live within a few days.
- Ensuring policy compliance & documentation
- Directly Connects with Nykaa for Product Category Selection
- Pushing for approval to the Nykaa category team
- Navigating the complex product listing procedure
- Making the account live
Once you are successfully onboarded, let’s develop an understanding of the selling model so you can align your e-commerce activities accordingly.
Nykaa Selling Models
1. Marketplace Model
Under the Nykaa marketplace model, brands are entirely responsible for order fulfillment from picking, packing, and dispatching orders from their warehouse directly to the end consumers via Nykaa’s logistic partners. Nykaa sends a PO to brands, which contains the details of orders- quantity, price, and contact information. Upon receiving the PO, brands can start the procurement process from their vendors. Once the desired products are received, the seller sends the GRN to their vendors.
The following steps are followed in the model-
- PO generation to vendors – PO records the important details like price and quantity so that there will be no confusion in the order procurement.
- Quality check of received goods – Quality check ensures that only good quality stocks are entered in the warehouse.
- Label generation – Label generation is an important aspect of order processing. It contains information like SKU number, price information & other details.
- Invoice generation – Invoice generation ensures accurate transaction records, legal compliance, and smooth processing of payments and returns.
- Shipping label generation – A shipping label is important to prepare an order for dispatch. It has the recipient’s name, address, shipping method, tracking number, and barcode.
- Dispatching – Once the order is ready, it is dispatched from the warehouse and handed over to the delivery partner for transportation to the end customer. Under this model, sellers have to follow a payment cycle; thus, they receive payments after a few days of dispatch, say 25 days. Sellers have to strictly follow the terms and conditions, including TAT, which is 24-48 hours for Nykaa.
2. JIT Model
Under JIT model, Nykka outrighly purchases the products directly from premium brands with high-qualty products and sell them on its platform at the desired cost. For instance, Nykaa purchased a product worth Rs 50 instantly, and Nykaa can sell it at the desired set price, say Rs. 70. This model has many benefits for brands as they don’t have to depend on market fluctuations to get sales. Opting for this method, brands can instantly recover the worth of their inventory, for which they may have to wait for a longer time in the marketplace model. This model also helps brands cut down inventory storage costs and create space for new inventory.
- Reserve Your Inventory – While in other marketplaces, sellers may start order processing after receiving the PO, but in Nykaa, brands have to reserve their inventory on Nykaa just after receiving orders, and there is no waiting for the PO. This is a really crucial factor to understand as brands need to manage their inventory commitment to multiple selling channels.
- Dispatching Through the Nykaa Warehouse – After receiving PO, brands have to send the products to the Nykaa warehouse, where they perform internal QC and pack the products for dispatch. Here, the fulfillment responsibilities get transferred to Nykaa as packing, labeling, and dispatching are entirely done via their warehouse.
Key Operational Challenges You Might Face On Nykaa
Once you get onboarded on Nykaa, half of the battle is won! But as you start selling, you might face some operational challenges.
1. Difficulty in label generation
You can’t generate shipping labels unless you get the order confirmation from Nykaa. Once they are assured that the order is genuine, you can proceed with the dispatching process. This poses challenges for sellers and delays the shipping process.
2. Quality Check Delays
Sellers also struggle with performing quick quality checks when inventory arrives at the warehouse. Manual checks can take up a lot of time, and there’s a risk of unknowingly storing low-quality products in your inventory.
3. Wrong Order Processing
When you have many SKUs for a single product, like different lipstick shades (cherry red, purple, etc.), it’s easy for pickers to make mistakes. Even a small error in picking the wrong shade can lead to returns and customer dissatisfaction. This problem happens when your warehouse is disorganized, and inventory is inaccurately updated at the time of placing stock on shelves.
4. Difficulty in Return Tracking
Return rates are usually high in the fashion and cosmetic industry, so somewhere, sellers have to find a seamless way to manage returns. But, committing time to track returns is another hustle. There could be a lot of confusion in verifying your products and putting them back into inventory. When your inventory is stuck in the return process, it can add up to your cost as you can’t put it live.
5. Lack of Centralized Inventory Visibility
You could be committing thousands of inventories in different sales channels apart from Nykaa, how will you identify which inventory you have allotted to Nykaa without a centralized view? You may have to divide your inventory and keep track of it every time a sale occurs. This increases the risk of missing the fulfillment time frame (24-48 hours), leading to potential delays.
Simplify Selling on Nykaa With Unicommerce’s Advanced Capabilities
Unicommerce’s platform lets you handle every order processing stage via simplified and advanced methods, right from procuring inventory from vendors to dispatch & returns, that too with clear visibility of order status.
- Automate PO & Cross-border PO Generation – Half of the burden is down when your PO or sales order is automatically sent to your vendors. You can rest assured that you have enough stock in your inventory and also don’t have excess stock.
- Barcode-based QC – Barcode or scan-based quality check ensures that the correct, and only the highest quality stocks, are stored in your inventory. So, you are 100% confident at the time of picking that you are processing the correct order.
- Smart stock placement – With smart stock placement, you can stock your SKUs according to the product specifications or variants, for example, color, variant, and expiry dates.
- Real-time Inventory Sync – Real-time inventory sync provides you with complete visibility of your inventories on all sales channels. With this feature, you don’t need to divide your inventory into different marketplaces as you can show all the inventory across all platforms at the same time.
- Image-based QC – Image-based QC allows you to verify the right product when picking, ensuring a faster process and accuracy.
- Easy Return Tracking – Returns manifest generated by the system lets you record which SKU has arrived back in the system. You can track large quantities of returned products with exact information on each SKU.
- Label Invoice bifurcation – Usually, you get a label and invoice on a single PDF, but in case you don’t want to generate an invoice, there is a choice on that. However, if you are onboarded on platforms like Unicommerce, you do have a choice. You can bifurcate the label and the invoice generation and choose to print one of them. That lets you cut costs on paper, especially when processing bulk orders.
- Label Printing in three different formats – Depending on the seller’s operations, they can print labels in three different formats: PDF, CSV, and HTML. This flexibility allows sellers to choose the format that best fits their workflow, making it easier to integrate with their existing systems, automate processes, and streamline operations. For instance, PDF labels are great for printing on standard label sheets, and CSV can be used for bulk processing or integration with other systems
- Virtual Bundling – Bundling makes it easier for sellers to manage inventory, streamline packaging, and boost sales. For example, a seller offering a “Complete Skincare Routine” bundle can package a cleanser, toner, and moisturizer. This approach helps sellers promote slower-moving products by pairing them with popular items, boosting their visibility and sales.
Key Tips To Grow At Nykaa
On average, any brand that onboards on Nykaa may have to wait for at least two quarters to see significant growth, that too when your product information is authentic and in compliance with the platform policies. In today’s cut-throat competitive scenario, getting visibility on Nykaa is another hustle. Here are some key strategies that can help you grow faster-
1. Review-oriented Consumers
Nykaa’s consumers are review-oriented. Their buying decisions are based on ratings and reviews of the product, along with other factors. Brands can leverage this factor to improve their products’ visibility for faster growth. Positive reviews build trust and credibility for your brand, while negative reviews could be potential feedback; overall, it helps build a direct relationship with consumers.
2. Bid For Home Page
Nykaa is a platform where many brands are already competing to get recognition. In such a scenario, a smart move could be to bid for the home page because it is the most visited section, and a frequent appearance on the home page can increase your brand recognition, which can potentially turn one-time buyer into repeat customers.
3. Expiry Date Management
Skincare and cosmetic products are time-sensitive and require brands to carefully manage orders so that they don’t dispatch orders closer to expiry dates. FEFO-based implementation is an effective way to avoid such issues, ensuring a fresh product piece is delivered to the end consumers.
4. Avoid Cataloging Backlog During Festive Season
The festive season sale is a great way to improve the brand’s visibility; however, they have to upload catalogs well in advance, as any last-minute changes could be a blunder if you change the product listing multiple times just before the beginning of the festive season sale, Nykaa can freeze that particular listing. That’s why it is better to well plan your cataloging process, for instance, deciding which products you want to list during the festive season, and uploading certificates and licenses for the required products.
5. SEO Optimized Product listing
Using the right keywords in the product title and description can really impact your product visibility on the platform. Let’s say, you sell haircare products, specify the consumer’s need, for instance, hair serum for frizzy hair, hydrating hair mask, Shampoo for hair strengthening and growth.
Commission Charges, Fee Structure & Reconciliation at Nykaa
Nykaa charges a commission based on the product category that usually varies from 15% to 30%. Here are some additional charges.
- Shipping Charges – for new sellers, Nykaa doesn’t charge fees for orders above Rs 299, and for existing brands on orders above Rs 149. For Nykaa fashion, for all orders below Rs. 800, there is a shipping charge of Rs. 99 and for orders below Rs. 800, shipping is free of cost.
- Marketing Fees – Nykaa helps brands boost their sales with some marketing aids, the price of which may vary according to product category.
Build Your Brand At Nykaa
Nykaa is a one-of-a-kind platform that truly provides the much-needed brand recognition to the growing D2C brands. However, the brand needs to understand that its products have to be 100% original and authentic because there is a strict brand evaluation process. However, if the brand possesses all certifications and licenses to sell their products, there is a pool of opportunities for them on Nykaa.
Related Read –
How to Sell on AJIO
How to Sell on Meesho
How to Sell on Amazon
How to Sell on Myntra
How to Sell on Flipkart