Flipkart has updated its seller policy, in which it has reduced commission fee for small-ticket orders, and have increased it for large-ticket sizes, reports The Economic Times. According to the report, the commission has been reduced by 5% for products below Rs 300. It is unclear, how much increase in commission is there for order above Rs 300. MediaNama has written to Flipkart to confirm the revised policy and will update once we hear more from them.
Lowered commission for small-ticket items may force sellers to reduce their prices of the items listed on Flipkart. Note that, in March a group of online vendors wrote to Competition Commission of India (CCI) complaining that e-commerce players like Flipkart and Amazon are indulging in predatory pricing and discounting which is harming the sellers’ business.
Anil Goteti, Head of Marketplace, Flipkart told ET that the company has also added data insights for sellers in its upgraded sellers’ policy, and the company said that it will give sellers visibility, recommendation on warehousing, data on popular products, intelligence and analytics.
According to ET’s report, the company has also updated its payment settlement time frame, in which sellers falling under its tier ‘silver’ will get faster payment settlement. Flipkart lists its sellers under three tiers based on their performance, products, reviews, returns, etc. The four tiers are- Gold, Silver, and Bronze. The company claims on its website, that it pays its sellers in the time-frame of 7-15 business days from the date of order dispatch. “It’s 7 business days for Gold Sellers, 12 business days for Silver Sellers and 15 business days for Bronze sellers.” The company had started its tier system last year in November.
Meanwhile, a Bangalore-based laptop and computers vendor filed an FIR against Flipkart’s executives including founder Sachin Bansal and Binny Bansal, alleging that has not the e-commerce company did not clear dues to the tune of Rs 9.96 crore.