Seller Issues Notice To Flipkart Over Non-Payment Of Dues Worth $2.9Mn

SUMMARY

Earlier, A Group Of Sellers Had Complained About Delayed And Partial Payments By Flipkart

One of the vendors of Flipkart, MarcoWagon, has sent a notice to the ecommerce company for non-payment of dues and damages worth $2.9 Mn (INR 20 Cr). In May, a group of sellers had complained about delayed or partial payments by Flipkart.

A Flipkart spokesperson denied the accusations saying, “All allegations made by Marco Wagon are incorrect. We have already initiated appropriate legal proceedings, including criminal action against Macro Wagon and the matter is subjudice.”

Earlier, Inc42 had reported on sellers’ allegations that there were delays in payments from Myntra, Jabong, and Flipkart. Some of the sellers on these marketplaces had claimed that their payments were being made at an interval of three months.

At that time too, the company spokesperson had said that there were no issues regarding the payments.

Prior to this, in March, the All India Online Vendors Association (AIOVA) also reiterated its demand for an ecommerce authority. According to the AIOVA, the company had held back payments of up to 50-75% of the amount to be made to sellers.

The case history between MacroWagon and Flipkart dates back to December 2017 when a case was filed in Delhi High Court by one of the biggest US sportswear brands, Skechers.

After this development, in April 2018, Flipkart filed a criminal complaint against one its employees and one of its major suppliers, MRPL, over allegations of cheating, fraud, forgery, and breach of trust.

After the Walmart deal, the Indian ecommerce company continues to expand its product portfolio, commitments, and plans for new ventures. Earlier, the company asked its employees to continue delivering after the acquisition.

Emphasising on quality control, the company had introduced checks and balances for its sellers to audit product quality so that it could reduce its return rate from customers due to poor-quality products.

In an email to its sellers, the company said that if they fail to pass the audit, they could be delisted or they might even lose the ‘Flipkart Assured’ badge on the platform.

[The development was reported by Moneycontrol.]