Walmart-owned Flipkart has started charging a Rs 3 platform fee for orders.
Both online payments and cash-on-delivery (COD) orders are subject to the platform fee.
The cost is applicable regardless of the customer’s participation in the Flipkart Plus program.
Flipkart Starts Charging Platform Fee of Rs. 3
The Flipkart website and mobile app both display the Rs 3 fee. As per reports, this fees has been imposed as early as August 13.
For orders up to Rs 10,000 in value, there is a charge.
Cleartrip and Flipkart’s grocery delivery services are free of the Rs 3 platform charge.
Flipkart’s rapid commerce division, Flipkart Minutes, and its fashion segment, Myntra, are already charging the fee.
A little higher platform fee of Rs 20 is charged by Myntra; whereas, Rs 5 is charged by Flipkart Minutes.
According to Flipkart, the platform fee is meant to encourage effective operations and ongoing development.
With this change, Flipkart now charges handling fees in accordance with rapid commerce services like Zepto, Blinkit from Zomato, and Instamart from Swiggy.
On these platforms, handling fees vary from Rs 4 to Rs 9.99.
One of the main rivals, Amazon, does not presently impose a platform fee.
Amazon To Impose Platform Charge As Well?
It is rumored that Amazon may impose a comparable charge in retaliation for Flipkart’s action.
Platforms for quick commerce are progressively branching out into product categories other than grocery.
Growing competition from this development threatens well-established companies like Amazon and Flipkart.
For instance, Blinkit, a Zomato company, provides delivery of small electrical goods in ten to fifteen minutes.
The traditional e-commerce businesses are thinking about getting into this market due to the quick commerce platforms’ explosive growth.
In a market where competition is fierce, maintaining profitability is thought to be possible with the platform fee trend.
Well-established e-commerce businesses are adjusting to changing customer needs fueled by expedited commerce services.
