Home/ Technology / News/  Online shopping via Flipkart? Now pay extra for cash on delivery orders

Walmart-owned Flipkart has introduced a handling fee for its cash on delivery orders. As reflecting on the Flipkart mobile app and website, the e-tailer will now charge a nominal fee of 5 when a user choses ‘Cash on Delivery’ payment option. At present, Flipkart charges delivery fees for products below a certain price category. While the actual charges vary with each seller, a product listed as Flipkart Plus demands a delivery fee of 40 if the order value is less than 500. On the other hand, there are no delivery fees on orders above 500.

“For Products listed as Flipkart Plus, a 40 charge for delivery per item may be applied if the order value is less than 500. While, orders of 500 or above are delivered free," reads a Flipkart web page.

But now, irrespective of delivery fee or no delivery fee, Flipkart will charge a handling fee of 5 for all cash on delivery orders. "Due to handling costs, a nominal 5 will be charged for orders placed using this option (COD). Avoid this fee by paying online now," reads the description under the cash-on-delivery option on Flipkart.

Meanwhile, Flipkart reported 31% revenue growth in 2021-22 to Rs10,659 crore, but its net loss widened 51% to Rs4,362 crore during the fiscal year due to rising transportation, marketing and legal expenses. Its operating revenues rose to Rs10,477 crore in FY22 compared to Rs7,804 crore in FY21, according to data accessed by business intelligence platform Tofler. Flipkart-owned fashion retailer Myntra’s operating revenue, on the other hand, rose 45% to 3,501.2 crore in FY22. It reported a loss of 597.6 crore, up from Rs429 crore in the year before.

Flipkart rival Amazon India posted a 32.5% annual revenue growth to 21,462 crore for the marketplace vertical, Amazon Seller Services. It also narrowed its losses by 23% to 3,649 crore in FY22.

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Updated: 29 Oct 2022, 01:48 PM IST
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