How to Sell on GeM: Step-by-Step Guide for Businesses in 2024

Listing and selling products and services on the Government e-Marketplace (GeM) presents a valuable opportunity for businesses entering the government procurement sector in India. GeM offers a seamless experience and access to a vast market, making it easier for government departments to procure goods and services from registered vendors. It provides a transparent and efficient system that benefits both buyers and sellers.

This comprehensive guide will walk you through the steps to start selling on GeM, from registration to setting up product listings and optimizing your profile for increased visibility.

Understanding GeM and Its Benefits#

The Government e-Marketplace (GeM) is an online portal designed to facilitate procurement for government departments. It enables businesses of all sizes, including start-ups, micro-enterprises, and established companies, to register as sellers and showcase their products to potential government buyers.

Benefits of Selling on GeM#

Access to Large-Scale Buyers: Sell directly to government departments, PSUs, and autonomous organizations.
Streamlined Process: GeM simplifies procurement with standardized categories, digital payments, and transparent transactions.
Opportunity for All: Open to MSMEs, women entrepreneurs, Startup, and more
Transparent Bidding: Competitive pricing and transparent bidding processes promote fair competition.

Learn what is Government e-Marketplace and how does it work?

Registering as a Seller on GeM#

Before you can start selling on GeM, you need to create an account on the platform. Here’s how:

Visit the GeM Portal: Go to the official website at gem.gov.in.
Sign Up: Click on the “Seller” button under the “Sign Up” section.
Provide Details: Enter basic details such as business type, PAN, email address, and mobile number.
Aadhaar-Linked Mobile Number: Ensure your Aadhaar-linked mobile number is ready, as OTP verification is required.

Setting Up Your GeM Profile#

You must complete your seller profile to start transactions on GeM.

Optimizing Your Profile#

Submit Necessary Documents: Upload required documents based on your business type (proprietorship, partnership, LLP, or company), such as GSTIN, PAN, bank account details, and business registration certificate.
Caution Money: Caution money is a mandatory one-time security deposit required to complete your profile verification. Without it, your profile will not be functional. This is a preventive measure to help prevent false or multiple registrations by the same individual or business.

Adding Products and Services on GeM#

Once your profile is set up, you can start listing your products or services. GeM’s catalogue-based system categorizes products and services to simplify the buying process.

Steps to Add Products#

Navigate to Catalog: From your seller dashboard, go to Catalog > Products > Add New Offering.
Choose Category: Select the appropriate category for your product or service. GeM offers a wide range of pre-defined categories to choose from.
Fill in Product Details: Enter specifics such as brand, model, specifications, and any additional attributes. Ensure you complete all mandatory fields to guarantee approval.
Pricing and Stock: Set the MRP, offer price, and available stock. Upload the MRP document to verify that your price is competitive.
Images: Upload at least three high-quality images with a white background. Ensure the images are clear and showcase the product from different angles to give a comprehensive view to potential buyers.

Participating in Bids#

Once your products or services are listed, you will begin receiving automated notifications for newly published bids in the relevant categories. You can then start participating in those bids.

GeM offers two main bid types:#

Direct Bids: Respond directly to publish tenders by submitting your best offer.
Bid to RA (Reverse Auction): Submit an initial bid, followed by real-time competition in a reverse auction where sellers lower their prices according to their strategy and profit margins to win the contract.

You can read more about bids and their types in this blog.

Tips for Successful Bidding#

Understand Bid Requirements: Thoroughly read bid documents to grasp technical and pricing expectations.
Competitive Pricing: GeM is a highly competitive marketplace, so ensure your pricing is both competitive and sustainable.
Optimize Bid Submissions: Use clear, concise, and accurate descriptions. Attach all necessary documentation to prevent bid rejection.
Stay Updated on Released Bids: Regularly check the GeM portal to stay informed about new opportunities in your category.

Receiving and Managing Orders#

When a buyer places an order, you will receive a notification on your registered phone and email. Here’s how to manage orders effectively:

Confirm Order Promptly: Respond to orders as quickly as possible to demonstrate your reliability.
Timely Fulfilment: Adhere to the promised delivery timelines to maintain a good seller rating and avoid penalties.
Generate Invoice: Ensure timely and accurate invoice generation with proper justifications for orders to facilitate quick payment.

Payment Process on GeM#

GeM's integrated payment system simplifies transactions, ensuring that you receive payments promptly once orders are fulfilled.

Payment Stages:

Quick Payment Process: After the order is received by the consignee, you will receive payment within 10-15 days.
Coordinate with Buyer if Delayed: If there is a delay in payment, you can coordinate with the buyer or raise incidents on GeM against the buyer.

Best Practices for Selling on GeM#

Maintain High Product Quality: Quality is paramount on GeM; poor quality could lead to penalties or removal from the platform.
Offer Competitive Pricing: Regularly review your pricing strategy to stay competitive while ensuring profitability.
Stay Updated on GeM Policies: GeM policies are updated frequently, so make it a habit to regularly review platform rules and updates.
Prompt Customer Service: Respond to queries and complaints swiftly to maintain a good seller rating.
Regularly Update Inventory: Keeping your inventory accurate ensures you won’t face issues with out-of-stock items.

Conclusion#

Selling on GeM unlocks numerous opportunities in government procurement, giving businesses access to a vast market of large-scale buyers and streamlined purchasing processes. By carefully following the steps outlined above and adhering to GeM’s guidelines, you can establish a strong presence on the platform and drive significant growth.

GeM’s structured framework fosters fair competition, enabling you to effectively showcase your offerings. With a strategic approach, you can build a robust pipeline of government clients, ensuring long-term success in the public sector. Embrace this opportunity to expand your business horizons and become a trusted seller in government procurement!