Flipkart has stopped delivering parcels costlier than Rs 10,000 to its UP-based customers (including regions of Noida and Ghaziabad), citing a 'purely business oriented' decision, Times of India reports.
However, if the report is to be believed, there is more to this decision than what meets the eye. Reportedly, Flipkart's shipment delivery staff in Lucknow told TOI that the company had been witness to several instances of customers ordering costly goods using the cash-on delivery (COD) payment option, and then refusing to accept them. The publication also cited sources that said many users logged on to the popular portal and ordered goods “just for fun”.
In fact, TOI was also told of instances of fraud, wherein lost or stolen credit cards were used to book orders online.
No more 'just for fun' orders
Flipkart though, maintains that the decision was purely business oriented one, and refused to divulge details. “It takes a minimum of 10 days to ship a product to a customer and back to the company if it's not purchased. It causes loss to sellers, selling through Flipkart, as their products get blocked in transit,” a senior Flipkart executive told TOI.
Understandably, good money goes into the process of delivering the goods to the customer – shipping, insurance (in case of expensive goods) costs, et al. “The transportation cost is in proportion to a products' value, hence return of any expensive product would mean incurring greater loss than rejection of a small value order, priced less than Rs 10,000,” the report notes.
Publish date: June 7, 2013 11:07 am| Modified date: December 19, 2013 11:56 am