Is Flipkart transferring Revenue Loss to Sellers during COVID19? – Weprocessit Blog

Due to the national wide lockdown almost all ecommerce industry has been put on a halt, except those who deal in daily necessity. Flipkart being a market giant is no exception. Though it deals in daily necessities but the number are significantly low. Due to the 21 Days Lockdown, flipkart has put major sellers account on hold and there listings are not available on the flipkart website as well.

This leads to unprecedented loss to flipkart and online sellers, who has to bear all the brunt of ┬áthis situation as all the orders which they had received and were not dispatched, or in transit, now stands cancelled. Flipkart earlier assured all sellers that it will not deduct any cancellation charges on orders cancelled due to “COVID CANCELLATION”.

But the story seems to take a turn. On 6th April, Flipkart updated the outstanding payment sheet of majority of its sellers and booked an negative payout entry under “Covid19 Cancellation”. The transfer of loss on part of Flipkart is as high as 50000 INR to 1 Lakh INR in case of majority of sellers. This activity has further burdened the online sellers who are already facing huge losses due to the nation wide lockdown.

Queries to Flipkart regarding the transfer of its loss to its thousand of sellers, gets this reply:

“Dear Sellers, we would like to assure you that the Pending COVID returns and COVID cancellations you are seeing on your dashboard is not a charge or a fee.

We have sent a communication earlier that in order to prioritize delivery of essential products, we had to cancel the non-essential orders.

We have therefore reconciled all the cancellations of non-essential items and customer returns to make the payment to your account. The net final settlement that you see has taken the above into account.

We observed that some of you may have understood it as a charge or fee, hence we have made some changes to the dashboard to make it more clear.”

On further perusal of some seller accounts, we realised that Flipkart has deducted the same payout twice under different heads thus increasing the negative payout for sellers. In the absence of a statuary authority who could look into these matters the Online Seller Group has no other option but to plead Flipkart which seems to be going in vain.

It seems that a E-commece Giant like Flipkart has shifted all its losses to the Online sellers instead of coming up with a viable solution to face the prevailing worst circumstance.

 

Weprocessit Team

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