Online marketplace punishing sellers for returned items?

Published by Admin 9th April 2016 | 3 Comments

Sellers have whined that the marketplaces are penalizing them in case of an opened packaging and returned item.

Around 1,000 sellers have conveyed that Amazon, Flipkart and Snapdeal do not share logistics expenses or returning commissions in case a customer opens the package then doesn't want the item.

Rather, sellers state the marketplaces put the blame on them, saying the product they shipped was fake or malfunctioning items leading to return.

"In case of a customer return (where the customer has actually opened the package) we have to (still) pay commission to the platforms. In case of courier return (where product packaging is undamaged), we don't have to pay commission," a seller informed ET.

The returns, seller’s state, have soared and are primarily from Uttar Pradesh, where the sellers have stopped shipping in numerous areas.

ArvindSinghal, chairman of consultant Technopak Advisors, informed ET, "There might be several reasons for this. Initially, with high penetration of mobile phones, there are non-serious purchasers who order for the sake of fun, like window shopping on ecommerce websites.".

Second of all, he said, in categories such as garments, shoes, etc, touch and feel might be different from exactly what it appears like on the website.

On the contrary, Amazon and Flipkart stated the returns had declined.

"Our returns procedure is developed to develop a great deal for both our consumers in addition to sellers," a Flipkart representative said, adding "Majority of our sellers have considerably lower return figures as compared to the market. We have an easy return policy for our sellers which guarantees prompt returns in addition to exchanges.".

Also, Snapdeal too said that returns had actually decreased.

"The returns on the Snapdeal platform have progressively decreased over the last one year due to introduction of various innovation upgrades and tighter monitoring of quality elements," a Snapdeal spokesperson told ET.