Customer Story
Leading Indian Marketplace Raises Seller GMV Contribution by 38% Through Loyalty & Performance Programs Deployed On Xoxoday Loyalife
Challenges
As the marketplace scaled, maintaining seller performance, catalog quality, and consistent seller engagement became increasingly difficult. The key challenges included:
- Low motivation among sellers to meet GMV and order targets, leading to uneven monthly GMV contributions.
- Poor listing quality: many products suffered from incomplete descriptions, subpar images, or missing compliance attributes — hurting search visibility and conversion rates.
- Declining customer satisfaction and seller ratings, particularly among long-tail and smaller vendors.
- Slow seller ramp-up — new vendors took too long to complete onboarding steps, upload inventory, or make their first sale, delaying revenue realization.
- Weak participation of sellers in seasonal promotions and flash sales, resulting in underwhelming assortment and missed campaign potential.
- Lack of structured incentives for exclusive or early product launches, causing vendors to launch exclusives on competing platforms instead.
Solution
The company adopted Xoxoday Loyalife’s channel incentive solution to launch a comprehensive Seller Engagement & Performance Incentives Program, which was structured around six incentive tracks aligned to marketplace priorities:
- Performance-Based Incentives — Tiered bonus plans rewarding sellers for achieving weekly and monthly GMV targets, encouraging consistent performance and prioritization of the marketplace.
- Listing Quality Bonuses — Incentives for sellers who enhanced product listings with complete descriptions, high-quality images, and compliance metadata, improving catalog standards and discoverability.
- Customer Rating Rewards — Linking seller incentives to customer ratings and satisfaction scores to promote quality fulfillment, timely shipping, and customer-first behavior.
- Onboarding & Activation Rewards — Reward milestones for new sellers completing onboarding paperwork, uploading initial inventory, and achieving their first sales, to accelerate activation and reduce time-to-first-sale.
- Exclusive Product Launch Incentives — Special incentives for sellers who launch exclusive or early-release products on the marketplace to improve platform competitiveness and increase assortment appeal.
- Seasonal Campaign Participation — Bonus incentives for seller participation in seasonal promotions, flash sales and holiday campaigns — ensuring higher availability, better inventory readiness, and strong seller engagement during peak periods.
Impact
Thanks to the structured program:
- 38% increase in GMV contribution from incentivized sellers
- 55% improvement in overall catalog completeness, enhancing product visibility and search relevance
- 28% rise in top-rated (4 star and above) sellers, resulting in better customer satisfaction and fewer complaints
- 37% reduction in time-to-first-sale for new sellers, speeding up marketplace onboarding and revenue generation
- 52% uplift in seller participation during seasonal campaigns and promotional events
- 3.4× increase in exclusive-product launches on the marketplace, improving product assortment and competitive differentiation
Conclusion
By deploying the loyalty and incentive platform, the marketplace transformed its seller ecosystem into a high-performance network. The structured reward tracks — from onboarding, listing quality, to performance and campaigns — encouraged sellers to prioritize the marketplace, improve catalog standards, and align with customer satisfaction goals.
This resulted in significant growth in marketplace GMV, improved catalog quality, higher seller engagement, and a noticeable increase in exclusive product launches — positioning the marketplace for scalable, sustainable growth across India’s competitive eCommerce landscape.
About the company
A major Indian eCommerce marketplace hosting a large and diverse vendor ecosystem across categories such as fashion, home, electronics, and lifestyle. To drive growth and maintain service quality across thousands of sellers, including small businesses, D2C brands, and enterprise vendors, the company sought to implement structured seller engagement and performance programs.
Industry: eCommerce marketplace
Seller base: 50,000+ active marketplace vendors
Headquarters: Bengaluru, India
Presence: Pan-India (metro, tier-2 and tier-3 seller clusters)
Use cases: Performance-based incentives, listing quality bonuses, customer rating rewards, onboarding & activation rewards, exclusive product launch incentives, seasonal campaign participation
