Flipkart Effects Steep Hike In Commissions From Apparel Vendors


Nearly a month after implementation of the latest FDI norms for online market places came into effect,  Flipkart announced its decision to hike commissions from vendors who cater to the apparel category.

The hike is in retrospective effect from March 1, for the commissions it charges on western wear, kurtis, innerwear, smartwatches, blazers and waist coats. Spanning across categories,  Flipkart announced the hike in commission ranges between 6.5% and 15%.  Sellers of smartwatch will be facing the stiffest hike of 20% to 23%, translating into a 15% hike in their sales figures. The commissions charged on western wear have increased from 15% to 16%, representing a 6.67% change.

Flipkart’s alerts reached the sellers in their mail boxes and it alerted them of the escalated rates of the fee structure on the day the changes were made.  The vendors on their part put up their grievance that 15 days prior notice has to be given for any proposal to change of fee. “It’s unfair on the part of Flipkart to effectuate change in fees and notify impromptu. In wake of this, Flipkart should roll back its hike and announce a proper timeframe that will help us adjust,” said a vendor representative.


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