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Why sellers struggle on GeM and how to fix it

The Government e-Marketplace (GeM) is a revolutionary platform that democratizes procurement, allowing government departments and public sector undertakings (PSUs) to buy directly from vendors across India. While the portal has opened a vast market worth thousands of crores, many sellers—especially MSMEs and new entrants—struggle to succeed.

In this blog, we break down the top reasons why sellers fail on GeM and, more importantly, how to fix them with practical strategies.

Problem 1: Incomplete or Poorly Created Seller Profile

Symptoms:

  • Profile not verified
  • No OEM panel or brand approval
  • Product listings rejected or flagged
  • Poor product visibility

Solution:

  • Complete KYC thoroughly, including PAN, GST, Udyam, and bank details
  • Apply for OEM authorization to list your brand — this builds trust and enables catalog control
  • Use professional product images and accurate specs

Problem 2: Lack of Bid Awareness

Symptoms:

  • Missed bids
  • Not notified about opportunities
  • Always too late to apply

Fix:

  • Use the Advanced Search and set up bid alerts for your categories and keywords
  • Subscribe to a GeM tracking dashboard or use automation services (like GeM Managers or Tender Trackers)
  • Log in daily. GeM bids are highly time-sensitive and sometimes open for just 3–5 days

Problem 3: Inability to Compete on Pricing

Symptoms:

  • Losing bids to cheaper competitors
  • Struggling to balance margin and offer price

Fix:

  • Understand how Reverse Auctions (RA) work — sometimes RAs can go below cost
  • Streamline your operations to cut unnecessary costs (logistics, packaging, inventory)
  • Better sourcing pricing in the future.

“Government buyers aren’t always looking for the cheapest option. They’re looking for the most compliant and reliable vendor.”

Problem 4: Low Seller Rating or Feedback

Symptoms:

  • Poor GeM seller score
  • Low buyer trust
  • No repeat orders

Fix:

  • Ensure timely dispatch and delivery
  • Maintain proper documentation and invoices
  • Call the buyer post-delivery to ensure everything is satisfactory — request a rating if appropriate

Problem 5: Misunderstanding GeM Rules & Compliance

Symptoms:

  • Bids cancelled after L1
  • Rejected during technical evaluation
  • Penalties for non-compliance

Fix:

  • Study the Bid Terms & Conditions thoroughly
  • Always upload exactly the required documents, not more, not less
  • Clarify doubts with the buyer via the "seek clarification" tab
  • Don’t over-promise — government procurement is strict on specs

“On GeM, mistakes are costly. Non-compliance can lead to blacklisting or being barred from bids.”

Problem 6: No Long-Term Strategy

Symptoms:

  • Ad-hoc bidding
  • Low win rate
  • No brand building

Fix:

  • Identify your top 5 categories and build depth
  • Maintain a tracker for wins, losses, margins, and feedback
  • Plan for Q1 product upgrades, bulk stocking, and seasonal bid cycles
  • Partner with a consultant or service provider if you're short on bandwidth

Bonus Tips for Success on GeM

StrategyDescription
Brand AuthorizationHelps control your brand catalog
Participate in Bids + RAMost revenue comes from tenders, not direct buying
Monitor Buyer ActivityReach out if your product was viewed but not ordered
Keep Your Dashboard ActiveGeM deactivates inactive accounts
Register on Multiple PortalsAlso check CPPP, eProcure, and State portals

Final Thoughts

The GeM portal can be a goldmine, but only for those who treat it as a serious business channel. Many sellers give up too soon due to early struggles — often because they lack knowledge, systems, or support.

If you're stuck:

  • Educate yourself
  • Automate routine tracking
  • Take expert help when needed

The government is India’s largest buyer — and the GeM portal is your gateway to that market.

Need Help?

At GEM MANAGERS, we help vendors:

  • Get OEM approval
  • Track bids automatically
  • Optimize listings
  • Win tenders with better bid strategies

 Contact us today at sales@gemmanagers.com or call us on 8655654720

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