With increasing competition in e-commerce market, SnapDeal has smashes sellers commission and amended the return policies. SnapDeal stated that this effort has been incorporated due to feedback of retailers and will be applicable form 14 July 2017.
Due to which, marketing fee of SnapDeal has been reduced in almost 120 categories including electronics, women’s fashion, automotive accessories, digital products, FMCG products, fashion jewellery, sports and fitness goods, kitchen appliances, etc.
Snapdeal announces that it will charge the lowest marketing fee, however, marketing fee for around 30 sub-categories has been enhanced marginally. Whereas the free reduction varies from 0.2 to 18 percent, and the enhancement ranges from 0.5 to 5.5 percent. Snapdeal also clarifies that these simplified policies will assist the sellers to get rid of unnecessary penalties charged because of ignorance or complexity.
The return policies have also been amended due to increase in the complaints of sellers about being paid for unsellable returns. Snapdeal has explained that to part the cost of returns for mutual benefits, the firm will bear the payment collection’s cost and reverse pickup charges, while sellers have to pay the cost of shipping and packaging. In case of replacement or exchange, SnapDeal will be responsible for bearing the charges of reverse pick up.
In a statement, Vishal Chadha, Senior Vice President, Market Development, Snapdeal, said: “We believe reduction in marketing fees will foster growth for our sellers. We have worked closely with our sellers and based on their feedback, we have made these policy changes to make them in-line with e-commerce industry best practices.”
Earlier, in May 2016, the similar initiative of reduction in the commission of sellers was taken by the SnapDeal.
From past few weeks, the arch rivals of SnapDeal, Flipkart is facing issues with sellers due to its introduction of new commission structure on 20 June 2016. However, the firm denied the statement and said that overall number of active listing has been improved.
Alongside, Amazon has recently reduced its commission in high GMV categories including computers, tablets, other electronics, mobile phones, etc. While, no change in lifestyle, fashion, and home categories has been introduces, due to which enhancement in referral fee has been encountered.