/Paytm Mall limits sellers’ return claims

Paytm Mall limits sellers’ return claims

Paytm Mall limits sellers’ return claims BENGALURU:
Paytm Mall has made changes to its seller policy, limiting the claims a seller can make against product returns, but
sellers say they will end up with heavy penalties under the new policy.

The company, which is a distant third to Amazon and Flipkart, changed its policy last week to state that for non-delivery, or return of the product due to fault of the seller, the seller shall be liable to pay the marketing fee, courier charges, payment collection fees, fulfillment charges (if applicable), and seller proceeds, apart from bearing logistics costs, which stand at 1.25x of the forward logistics charges.

“The recent changes are in line with our endeavour to building a healthy and inclusive marketplace, which is fair to all sellers —big or small. We have instituted a maximum limit on the number of claims that sellers can receive against product returns. This is on the back of extensive data analysis and improvement of the platform capabilities to track and attribute the right reasons for returns,” a Paytm Mall spokesperson said.

“We have analysed data of the past years to arrive at this threshold, making sure that all sellers come under the same umbrella.”

To be fair, Amazon and Flipkart also charge sellers on product returns, which have been a big challenge for the
ecommerce industry, constituting 30% of the total gross merchandise value (GMV), according to Redseer Consulting.

One of the sellers ET spoke with said Paytm Mall has been changing their seller policy frequently over the past couple of months leading to concerns among the seller community. “We are working on 4% margins and sometimes end up paying penalties as high as 40% of the selling price of the product,” said a vendor, who sells watches on all the ecommerce platforms including Paytm Mall.