Aggravation for Aggregators

The aggregators and online marketplaces are under attack with Uber and Ola drivers complaining about their incomes dropping and earnings reducing for sellers and service providers. Drivers, sellers and service providers are forming associations which are causing aggravation for the aggregators.

E-commerce major Flipkart has changed policies for merchants who sell on its platform, slated to be implemented from March 15, reports Times of India. The e-tailer has reduced what is called 'fixed fee' by Rs 5-10 for small value items but the same has been increased by Rs 10 for products priced above Rs 1,000. The company has also changed slabs for implementing 'collection fee' of cash on delivery (COD) orders for sellers.

Flipkart's arch rival Amazon, on the other hand, has lower fixed fee for sellers and does not charge any collection fee from sellers on its platform. "We are passing the benefits to our sellers by bringing the new policies and it will help them do more business on our platform. There will be a reduction of about 10% in cost of doing business for all sellers," said Anil Goteti, head of marketplace for Flipkart. 

All India Online Vendors Association (AIOVA) said the changes by Flipkart will result in 4-5% reduction in prices of products but it will still remain higher than June last year when commissions were increased by 5-6% across categories. "Total orders for our sellers had dropped by 25% since June as we raised our product prices by 25-30% to absorb the increased fee by Flipkart," a spokesperson of AIOVA said. Earlier, Flipkart had also reduced the window for returning products to ten days from a month, with the exception of segments such as large appliances and fashion and lifestyle products. These changes made in June last year stand as it is , Goteti said.

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