SUMMARY
Per the notice, most of the sellers’ order deliveries have been met with a return request citing reasons including damaged or wrong products
The seller has blamed courier partners for neglecting their duties
The seller has also called for the ecommerce platform to offer proper resolution on damaged products issues
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An Ahmedabad-based seller has reportedly sent legal notice to ecommerce platform Meesho for ‘unfair trade practice’.
As per the notice, most of the sellers’ order deliveries have been met with a return request citing reasons including damaged or wrong products, The Hindu BusinessLine reported. The seller claimed that the returned products were found not damaged after receiving them from customers.
The seller has blamed courier partners for neglecting their duties that led to loss and hassle. As minuscule customer details are not shared with sellers, they are also not able to track such customers who place a return request.
The seller has also called for the ecommerce platform to offer proper resolution on such issues relating to damaged products.
A Meesho spokesperson said that the ecommerce platform is allowing sellers to choose their preferred logistics provider. Since this initiative was rolled out in January, the platform has claimed to see approvals by logistics partners going up 2X and seller claims reducing by 30%.
Earlier also Meesho faced similar seller discontent over return policy. In January, sellers on the ecommerce platform protested over a change in the return policy of the platform.
Under the new policy, the ecommerce platform introduced some technical changes, including the introduction of new barcodes and video verification of the product packaging. “Our policies on the returns side are fair and competitive. Sellers can only raise claims within 7 days of receiving the returns,” a Meesho spokesperson said at that time.
In the ecommerce deliveries, return logistics form a significant part of the total logistics costs. In general, reverse logistics (returns to sellers) is more expensive than forward logistics (shipping to customers).
In FY22, Bengaluru-based Meesho reported a net loss of INR 3,247.8 Cr during the period under review, up 550% from INR 498.6 Cr reported in the previous fiscal year.
While the startup saw its total expenses soar to INR 6,607.2 Cr in FY22, up more than 400%, its logistics and fulfilment expenses stood at INR 2,829.4 Cr in FY22 and contributed 43% to the startup’s total expenditure.
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