Flipkart e-commerce major has sneaked in a Rs 3 platform charge in the shopping carts, just like food delivery aggregators Swiggy, Zomato and Zepto. Although the company has said this is a small charge that is important in fine-tuning its operations with a view to improving the user experience, the move has elicited some concerns among players in the sector. Its suggests a new source of income to fund Flipkart’s continuation of the intense race against the fast growth of quick commerce.
This comes at a time Flipkart is ramping up its grocerant push, with the reemergence of Flipkart Minutes. This has led the players in the sector to come up with strategies to help them increase their revenue and profitability because of the stiff competition being experienced in the sector. Although, Flipkart’s parent Walmart is benefitting from the e-tailer’s good show, the new fee may affect customer behaviour and perception in a negative way.
In the light of rival firms like Meesho, having found ways to book profits without monetising the platform route through fees like those charged by Amazon, Flipkart’s move makes for a big bet. With the future course of e-commerce still unclear this fee will play a critical role in analyzing consumer response, among other factors, and the general dynamics that define this sector.
