Flipkart recently modified its return policy for a number of product categories in its online marketplace.
The formerly generous 30-day return window was trimmed to a brief 10-day period for the following categories: electronics, mobile phones, books, furnishings, home and kitchen, toys and sports items.
Some product sections still have the 30-day return policy: clothes, footwear, watches, sunglasses, washing machines, televisions and jewelry.
Flipkart says that the new return policy will go into effect in July. The company also notified sellers using its platform that higher fees are due beginning June 20. Flipkart is also pulling the plug on the Zero+ Commission Policy, which could generate a spike in the prices of products.
The no-questions-asked return policy that e-commerce vendors use can lead to a logistical nightmare and increased operational expenses for sellers on online marketplaces.
"The revised structure [...] will enable sellers to have predictability," a spokesperson for Flipkart affirms.
According to the online marketplace, the new rules should support sellers who offer "superior customer experience." Flipkart maintains that its fee structure is competitive, making it preferable to some of its rivals.
No later than last month, the e-vendor rolled out a "no cost EMI" option that allows clients to purchase premium items in a more affordable manner, cutting back all processing fees, down payments or interest usually found in equated monthly installments (EMI).
Meanwhile, sellers underline that even if they can route some of the shipping cost to the customers' end, they are still burdened by the reverse logistics that come bundled with return policies. Take note that Flipkart does not ask for sellers' approval before green-lighting a return request from the customer, something that rival Amazon India is doing.
Representatives of the All India Vendors' Association (AIOVA) fear that Flipkart's new policy will unnecessarily boost the prices.
"Flipkart has made many products and categories unviable for a common seller," AIOVA notes. The association points out that reverse shipping fees will fall on the backs of sellers. According to AIOVA, sellers might increase "current prices by 9 percent approximately."
AIOVA represents the interests of more than 1,000 sellers from digital marketplaces. The association complains that instead of simplifying the process, as Flipkart claims to have done, the new modifications only make matters more complicated.
Sellers also chastised the e-vendor for changing operating policies way too frequently.
"In December 2015 it introduced the Zero Commission Policy, which had to be retracted within two months of being launched," says a seller on Flipkart, who asked to remain anonymous.
At the start of the year, the Zero+ Commission Policy went into effect, only to be discontinued less than six months afterward. The seller adds that having a lot of frequent changes makes it increasingly difficult for sellers to keep track of transactions.
Back in February, Amazon India also updated its refund policy on smartphones. Market experts affirm that some customers of Amazon abused the vendor's return policy, which caused the e-commerce company to roughen up its refund policy to counter the fraud attempts.
Similarly to Flipkart, Amazon India practices a 10-day return policy for tablets, mobile phones, laptops, monitors, desktops, cameras and camera lenses.
