How Flipkart Online Shopping Is Killing Small Business

Do you want to become a seller on Flipkart? Maybe you have just started your business or you already have an offline business and plan to sell online?. The first thought will be to start selling on Flipkart, the top online platform in India. But recently compulsory  Flipkart cash on delivery policy on sellers is killing small business and many of them have just stopped selling online.

Here are few complaints of sellers with regards to COD :

1) Compulsory Flipkart cash on delivery

Flipkart has been encouraging cash on delivery, and their policy has been taken advantage of by unscrupulous and lousy customers. They do not give sellers an option to opt out of COD nor to have their own courier partner.One of our clients has a return of more than 50% of the items sold and his business is gone for a toss. These are how a compulsory COD policy is affecting sellers and causing high returns.

A) Lousy customers and returns

Since customers are not paying for the products purchased, they do not make a conscious attempt to receive the product. Example, the customer has ordered kitchen items which have to be delivered at his home but during the delivery, the customer may not be present at his place, and since he has not paid for it he may not bother to pick up the call of the delivery boy and may also ask Ekart to return the product.

B) Fraudulent customer

Many fraudulent customers use the products (mostly clothing) or replace parts of the products. Here is a complaint by one of Flipkart seller.

Customers are taking advantage of easy returns; a customer has himself agreed that he used it for a couple of days and then it broke. It’s a Standard 3M product, if it breaks, whose fault is it??Flipkart or sellers? If the same item is purchased at a store, the seller won’t accept the return or the buyer wouldn’t even try to return the Product. This is a fact, but a part of the Industry. Just wanted everyone to know my experience.
Rahul J Mahant

C) Buyers remorse and high returns

Customers purchase expensive items online and then regret the next day or sometime later and since they did not pay for it, they will ask Ekart to send it back to the seller while faking the return reason to Flipkart, thus the expenses have to be borne by the seller.

Many of our clients are making a massive loss on Flipkart, and Flipkart won’t do anything about it. In fact, Paytm, snapdeal has followed Flipkart way and made COD compulsory for all sellers on their portals, and this is killing online sellers.

Is Flipkart trying to kill online sellers to promote their products?.

Recently inc42.com has reported that

Indian Cellular Association (ICA) has alleged that these e-commerce companies are violating FDI (foreign direct investment) rules by offering discounts — directly or indirectly — on mobile phones and other products through intermediaries or partner companies.

The association represents major handset makers such as Apple, Micromax, Nokia, Vivo, Lava and Lenovo/Motorola.

In a letter to commerce ministry, the association has argued that the e-commerce companies “were circumventing rules under Press Note 3 on FDI by holding inventory and influencing the prices of electronic goods, eroding offline retailers’ revenue and putting at risk the jobs of nearly 60 Mn people.

Conclusion

Flipkart needs to give an option to the seller to opt out of  COD and to have their own courier partner.

 

By |2018-04-13T08:34:48+00:00April 6th, 2018|Asia, Hey Bro! Read- E-commerce Stuff, India, Uncategorized|0 Comments

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Global e-commerce Expert | Founder fabulosoindia.com| Bibliophile Contact: info@fabulosoindia.com

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