In 2016, the honourable PM of India decided to start a dedicated eMarketplace for various goods and services required by government bodies or organisations, based on the recommendations of the group of secretaries. The objective of setting up such a Government eMarketplace was to boost the growth and development of Micro-, Small- and Medium- Enterprises (MSMEs) in India. So, if you are starting a new business in this era of competition, it is important for you to consider every possible way to win over your competitors and the Government eMarketplace can be your perfect weapon in the process.
Want to know more about GeM? Keep on reading.
What is the Government eMarketplace?
In a nutshell, the Government eMarketplace is an end-to-end online marketplace where government-registered buyers can buy goods or services directly from the online sellers.
For instance, if you are a laptop seller and want to sell laptops to government bodies, you just need to register your products on the GeM portal and, after authorization, the government could buy directly from you online.
The initial idea behind building such an eMarketplace was to help government officials (both state and central) to buy the best goods and services. However, there is a limit of INR 50,000 for buying goods online.
But, is there any benefit of the Government eMarketplace for the sellers or MSMEs and buyers? Let us find out.
The Benefits of the GeM for Sellers or MSMEs
It is Open and Dynamic
The first thing that sellers would need to consider is the pricing of the products and services. And, as it is an open marketplace, it offers the option of dynamic pricing. So, prices can be set on the basis of market conditions.
Also, it offers you a dynamic product listing option which means you do not need to run for model upgradation or changes. Simply list your latest items and market them as per the features and the competitive prices.
Efficient and Transparent
As the process of selling and buying is done entirely online, there is no paperwork. Sellers can sell their products and services directly to the buyers and the buyers can buy them easily and without any unnecessary hassles. Therefore, Government eMarketplace is way more efficient, time-saving, and transparent than offline mediums.
Also, since there is no human interface in any of the processes (from the supplier enlistment to the instalment preparation) the processes are transparent and seamless.
Safe and Secure
The GeM is a safe place for buyers and sellers as each archive is e-signed at different stages of the process by both parties. Also, it provides a secure payment gateway and the payments are made under the prescribed time period.
Options to Sell a Wide Variety of Products
The GeM offers sellers a wide range of products to sell. Also, as a seller, you can offer any number of products on the platform. However, more than one OEM cannot be represented.
Which Types of Businesses Can Register on the Government eMarketplace as a Seller?
Any Indian seller who manufactures or sells genuine products or provides genuine services can sell products on the GeM portal.
Here are the must-haves for becoming a seller on the Government eMarketplace portal:
- Constitution Type, such as Proprietorship, Firm, Company, Trust or Society and Central Government or State Government
- Constitution Name
- Aadhaar Number or Personal PAN of the user (authorized signatory of the ITR)
- For Aadhaar based registrations, the mobile number linked with the Aadhaar
- Documents, such as CIN, PAN, DIPP, UAM, and ITR details, as per the constitution of the organization may be required for the seller registration
- Address of the organization
- Bank account details of the organization
- Active email address
Registering your Business on the GeM as a Seller
You can register with the Government eMarketplace and start selling your products on it, using the following link: Register your business as a Seller.
Also, here is a guide on the GeM portal registration.
The process is quite simple. Once you have registered on the given link, a GeM username and password will be created for you to access the seller account. Through that account, you (as the seller) can list your products or services to showcase it in the marketplace.
You are free to add the price of the products or services as per your will. However, it is necessary to price the products or services as an aggregate of every other expense, such as logistics, packing and taxes, and duties.
Tracking and Managing the Orders You Receive on the GeM Portal
Once you have completed the registration process, you will start receiving orders through the seller account dashboard. Whenever someone places an order for a GeM product or service, you will get a notification in the GeM portal manual. After receiving the order, it is your responsibility (as the seller) to carefully pack and safely send the item to the buyer. For this, keep using the GeM login and check the notifications.
Tracking and Managing Your Payments on the GeM Portal?
As payment is one of the most important parts, the government will send payments on time. The payment for goods or services earned through the eMarketplace will be made directly to the bank account of the seller via online banking. The time required for this is 10 days after the receipt and acceptance of the products or services.
Most Crucial Frequently Asked Questions
I am a new seller and wish to learn more about the selling process on the Government eMarketplace?
Watch these videos to understand the selling process on the GeM portal.
How many items can I add to my list of items on the Government eMarketplace portal?
There are no limits; you can add items as much as you want.
How can a startup register on the Government eMarketplace?
During the registration process, there is an option of selecting your organisation as a startup. If you do so, you will need to provide the DIPP number and the mobile number linked to the DIPP number.
Is it a good idea for a small business to register for the GeM?
Of course, because the Government eMarketplace will give you a chance to showcase your products and sell them directly, without going through unnecessary steps and building your own brand name in the industry.
Can I avail the benefits of the Startup India Mission through the Government eMarketplace?
Yes, you can.
What are the major benefits for startups on the Government eMarketplace?
You can start a business and dip your hands in entrepreneurship by registering on the GeM to avail the following amazing benefits:
- Relaxation of prior experience and turnover
- Exemption from submitting “Earnest Money Deposit”
- An easy way to showcase your products in front of a pre-built audience and potential buyers.
If you already own a startup or are ready to start a business soon to become self-employed, then registering your startup on the Government eMarketplace might be an ideal option for giving your business a kick start. All you need to do is register your business, use your DIPP number, and reach your targeted audience.