USA-based Walmart-owned Indian ecommerce company, Flipkart has amplified the commission charges from the vendors in the apparel segment.
The ecommerce company had reportedly intimated the apparel sellers about the commission hike on western wear, kurtis, innerwear, smartwatches, blazers and waistcoats to be effective from March 1, 2019.
The surge in the charge is between 6.5 percent and 15 percent.
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The charges for western apparel category in particular was increased from 15 percent to 16 percent This will increase the cost for the sellers by over 6 percent.
Unhappy with the change, the apparel sellers have reportedly asked Flipkart to take back the modifications made and also provide incentives to cancel out the effects of the changes.
Flipkart, with this move, perhaps eyeing a surge in its income from the apparel segment which is actually the second-biggest earner for the company’s gross merchandise value (GMV).
To the contrary, Amazon India had cut down commission by 35 percent for its apparel sellers in a recent move.
Recently, it was reported that Flipkart earned Rs. 30,164 crore in revenue for FY 2018.
