Now pay only partially while ordering on Flipkart as company launches new payment mode to reduce returns

Flipkart customers will now have a new option to pay for their orders. Apart from prepaid, cash on delivery (COD) and EMI options, Flipkart will now offer customers an option of part payment that would allow them to pay a partial amount at the time of placing the order and remaining through cash on delivery or online payment. The move is aimed at reducing cancellations and returns that have been a challenge for e-commerce companies. The new mode, “helps (sellers) enjoy higher unit/GMV growth while ensuring that cancellations are low,” Flipkart said in an email sent to sellers. A copy of the email was seen by Financial Express Online.

Since COD remains the predominant payment mode and also “results in higher units/GMV but comes with a cost of higher rate of cancellations”, the email read. The rate card, which includes different fee types such as fixed fee, commission, shipping fee and collection fee, will remain the same for sellers for the new payment mode. While all fees will be charged after the customer made the complete payment, the collection fee will be charged to sellers at 2 per cent of the amount paid by the customer at the time of placing the order and another 2 per cent of the amount paid later.

Online sellers association AIOVA tweeted, “Too late, we had been advocating this since years now. But finally implemented. Will other marketplaces follow this move? More such steps needed to Save Flipkart from their doom.” An AIOVA spokesperson in a separate statement said “this is a first step in making e-commerce entirely prepaid like it is in USA, EU and developed nations. This move can lead to 2-3 per cent reduction in prices for consumers as currently losses of such undelivered orders were factored as a cost.”

Meanwhile, Flipkart has already started displaying country of origin for multiple products listed on its marketplace under product specifications/details section on the product page. Myntra, Snapdeal, Pepperfry, BigBasket have also enabled country of origin for products their respective sellers have updated the information. Amazon has also mandated its sellers to share the same by August 10 for new and existing listings. Failure to update the information will result in “suppression of listings” Amazon said in an email to sellers.