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Flipkart introduces platform fee of Rs 3

Walmart-owned Flipkart has introduced a platform fee of INR 3 on its e-commerce platform. Additionally, the company has also rolled out a platform fee of Rs 5 per minute on its Quick Commerce section, Flipkart.

This is similar to the handling fees on platforms such as Swiggy's quick commerce business Instamart, Zomato's quick commerce platform Blinkit, and quick commerce major Zepto.

However, the fee is not applicable on Flipkart grocery orders or its travel vertical Cleartrip. Notably, Flipkart's fashion arm Myntra already has a similar fee structure. The introduction of Flipkart's platform fee coincides with the company's renewed push into the quick commerce space with Flipkart Minutes. The service is currently live in select pin codes, offering delivery in 8-16 minutes.

This move is necessary to increase the overall revenue and profit. Flipkart's new fee is in line with some quick commerce companies, but different from other major e-commerce players. Blinkit and Swiggy's Instamart charge a handling fee of Rs 4-5 per order, while Zepto's fee is INR 9.99.

However, Flipkart's rival Amazon currently doesn't impose any platform or handling fees. Similarly, Meesho, which reported a profit in Q3 2023, also operates without platform fees.

The introduction of the platform fee comes as Flipkart continues to conduct international sales for its parent company Walmart. In the second quarter, Flipkart achieved double-digit topline growth by improving contribution margins. Last month, food tech companies Swiggy and Zomato had reportedly increased the platform fee to Rs 6 per order in key markets including Delhi and Bengaluru.

Even if you subscribe to Zomato Gold or Swiggy One, the platform fee is a mandatory charge that a customer has to pay apart from GST and restaurant fees.

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Jeroj

Date

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August 19, 2024

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