Thursday, November 21, 2024
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Flipkart Introduces Rs 3 Platform Fee on Orders

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After popular food delivery platforms like Zomato and Swiggy introduced platform fees, Flipkart has quietly followed suit by implementing a small fee of Rs 3 on customer orders. This fee applies to both online payments and cash-on-delivery (COD) orders, regardless of the order amount or membership status.

Details of the Platform Fee

The Rs 3 platform fee applies to all orders placed on Flipkart, except for a few categories. The fee can be seen while placing orders on both the Flipkart mobile app and its website. Customers paying with cash on delivery or through online payments are subject to this fee.

It is important to note that the platform fee is charged on all orders up to Rs 10,000. Even customers who are part of Flipkart’s loyalty program, Flipkart Plus, are not exempt from this fee.

Exemptions from the Fee

While the Rs 3 platform fee is widespread, there are a few exemptions. Customers purchasing from Flipkart Grocery and its travel service Cleartrip will not have to pay the platform fee. However, it has already been applied to other categories, such as Flipkart’s fashion brand Myntra and its quick commerce arm, Flipkart Minutes, which charge higher fees of Rs 20 and Rs 5, respectively.

Why the Platform Fee?

According to Flipkart, the platform fee is meant to sustain its operational efficiency and enhance the platform for customers. This is not a new trend in the e-commerce space, as several quick commerce companies have already implemented similar charges. Swiggy’s Instamart, Zomato’s Blinkit, and Zepto all charge customers a small fee, ranging from Rs 4 to Rs 9.99, for handling and delivering orders.

Amazon is the biggest comparison of Flipkart.
Amazon is the biggest competitor of Flipkart.

Comparison with Amazon

Currently, Amazon, one of Flipkart’s biggest competitors, does not charge a platform fee for orders. However, with Flipkart having already introduced this fee, it is possible that Amazon may consider implementing one in the future.

Local quick commerce platforms are expanding their services beyond groceries, making them a growing concern for established players like Amazon and Flipkart. Platforms like Blinkit are now delivering small electronic appliances in just 10 to 15 minutes, and this rapid expansion is driving competition among e-commerce players. Flipkart’s move to introduce the platform fee could be a strategic response to the changing landscape of the quick commerce market.

Competition in Quick Commerce

With Flipkart’s introduction of a Rs 3 platform fee, customers should be aware of these new charges on their orders. As competition in the e-commerce and quick commerce space continues to grow, it will be interesting to see how other major players, such as Amazon, respond to this move.

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