ETtech Explainer: What is Flipkart's ‘advertise now, pay later' all about?
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Ecommerce giant Flipkart has unveiled a new feature for sellers on its platform called 'Advertise Now, Pay Later' (ANPL), which allows them to run campaigns without any upfront payment.This comes at a time when ecommerce platforms are facing increasing competition from quick commerce apps, not just for consumers but also for advertisements. In fiscal year 2025, top quick commerce companies, including Blinkit, Zepto and Instamart, together posted ad revenues of more than Rs 3,000 crore.While they lag quick commerce companies, ecommerce platforms have also seen a spurt in their advertising revenue. Flipkart Internet, the marketplace arm of Flipkart, generated nearly Rs 5,000 crore from advertising in FY24. Similarly, Amazon Seller Services, the Indian marketplace arm of Amazon, reported a 24% increase in FY24 revenue from advertising to Rs 6,649 crore.In this explainer, ETtech dissects Flipkart's new advertising format.As its name clearly indicates, leaving no room for doubt, ANPL is a line-of-credit based financing model that allows sellers to run advertising campaigns on its platform without any upfront financial payment or commitment. Under this model, sellers will be able to place their ads and run campaigns to boost visibility, and pay Flipkart later.Over 24,000 sellers on Flipkart have enrolled for the ANPL offering.Broadly, the feature is for all sellers on Flipkart's platform. According to the company, it will be beneficial for small businesses and new brands, which need more visibility than legacy brands.'With 'Advertise Now, Pay Later', we're removing the financial and operational hurdles that often hold back small businesses, new brands, and first-time advertisers,' Vijay Iyer, Vice President and General Manager, Flipkart Ads , said in a prepared statement.'By eliminating upfront costs and simplifying access, ANPL gives sellers a powerful way to increase product visibility, scale faster, and grow sustainably,' he added.Sellers on Flipkart already had both prepaid and postpaid payment options. 'However, we found the conventional credit programmes that demand upfront payments or postpaid models cumbersome and time consuming,' Iyer told ET.ANPL will have no upfront financial commitment, interest, joining fees, penalties or hidden charges, the company said.'ANPL leverages a seller's existing earnings on Flipkart as collateral, eliminating paperwork, speeding up access, and removing financial friction,' said Iyer.Currently, the option is available to sellers by default. They can access it via the Ads portal by tapping on the ANPL banner, without any credit checks or documentation.Revenue from advertising has been a key margin driver for consumer internet companies. Hence, it comes as no surprise that platforms are trying to make the process more seller-friendly.Global ecommerce giant Amazon offers monthly invoicing options for its sellers for advertising, which also includes credit checks and approvals. Similarly, Meesho is attracting advertisers by removing commissions for ads and offering pay-only-for-clicks options.
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