Flipkart revises commission fees, launches new loyalty programme for sellers

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VCCircle_Flipkart8Following Amazon India, e-commerce major Flipkart has also revised the commission fees of the sellers on its platform. It has also launched a new loyalty programme for sellers.

Sellers will be rated and bracketed into three categories – gold, silver and bronze – and will be provided benefits such as discounted shipping fees and quick payments.

The development was reported by Mint. The report also stated that the prices of products such as washing machines and microwaves have been reduced.

An email query sent to Flipkart did not elicit a response at the time of filing this report.

Last week, Amazon India increased commission charges for sellers in categories such as electronic devices and automotive accessories. It reduced the commission fee on products such as furniture and kitchen appliances.

In June this year, Flipkart had revised its commission system resulting in serious protests from the members of eSeller Suraksha and All India Online Vendors Association (AIOVA). They declared a strike against Flipkart and displayed their products as out of stock on the e-commerce website. The sellers’ main bone of contention was that Flipkart had increased the commission for various categories, while only minimally reducing the prices for a few categories.

Flipkart is locked in an intense battle with Amazon and Snapdeal to capture market share in the very competitive Indian e-commerce market. All three e-commerce firms had launched various initiatives in the run up to the Diwali festive season sales.

Flipkart claimed that it sold more units, 15.5 million units compared to Amazon’s 15 million units. Snapdeal claimed to have sold 11 million units. However, Amazon India head Amit Agarwal ruled out Flipkart’s claim of being the best in the business, saying that the metrics it and Snapdeal follow are ‘bogus’.

Amazon saw its seller base increase from 40,000 last December to over 120,000 this year.

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