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Big Billion Days Just Got More Expensive—Flipkart’s New Fee Explained

Summary

Walmart-owned Flipkart has introduced a uniform platform fee of Rs 3 across its ecommerce platform, emulating quick commerce competitors like Swiggy, Zomato, and Zepto. This fee, which applies to orders up to Rs 10,000, is part of Flipkart’s strategy to sustain efficient operations and enhance user experience. However, it is not applied to Flipkart Grocery or its travel vertical, Cleartrip. The fee is already in place on Flipkart’s fashion vertical Myntra and its quick commerce arm Flipkart Minutes. This move aligns with broader trends in the ecommerce sector where quick commerce players are increasingly impacting market dynamics. Unlike Flipkart, competitors such as Amazon and Meesho do not impose platform fees, while other quick commerce players charge handling fees ranging from Rs 4 to Rs 9.99. Flipkart’s fee introduction comes as the company prepares for its Big Billion Days sale and aims to drive growth for its US parent, Walmart.

Key Points

  • Flipkart has introduced a platform fee of Rs 3 on its ecommerce platform.
  • The fee applies to orders up to Rs 10,000 and is visible on both mobile app and website.
  • Flipkart Grocery and Cleartrip are exempt from this new fee.
  • The fee is already in place on Myntra (Flipkart’s fashion vertical) and Flipkart Minutes (quick commerce arm).
  • Amazon does not charge platform or handling fees, and Meesho achieved profitability in Q3 2023 without a platform fee.
  • Other quick commerce competitors charge handling fees ranging from Rs 4 to Rs 9.99 per order.
  • Flipkart aims to enhance operational efficiency and user experience with this fee as it prepares for its Big Billion Days sale.

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