Walmart’s Flipkart to cover insurance for all sellers in India and waive additional fees
Walmart-owned Flipkart is exempting storage and cancellation fees for sellers on its marketplace and also providing them with insurance coverage as the top e-commerce platform in India looks to maintain cordial relationships with more than 300,000 sellers who are facing severe disruption amid an unprecedented rise in the spread of coronavirus infections in the South Asian nation.
The Bangalore-headquartered firm said Friday evening that it is exempting storage fees to sellers who use the company’s fulfilment centres, and also waiving off the cancellation fees until the end of the month. (Several Indian states, as they did during the first wave of the virus, have imposed restrictions on sale and delivery of non-essential items.)
Flipkart will bear 100% premium of COVID insurance to all sellers that transact on the platform, covering any hospitalization and consultation fees between 50,000 Indian rupees ($685) to 300,000 Indian rupees ($4095).
The news today comes a week after Amazon, Flipkart’s chief rival in India, announced it was waiving 50% of the referral fee sellers are required to pay the e-commerce firm for this month, though not all sellers are qualified to avail this benefit. (The company said earlier this week that it was also postponing Prime Day in India and Canada due to the growing cases of the infection.)
Flipkart said it is also making it easier for sellers to access working capital from the firm without any incremental cost, though it did not specify the steps it had made.
It is also extending the window for the Seller Protection Fund to 30 days (from 14) to make claims on returned products. Flipkart said it will also ease its policies and performance metrics to ensure that they are not impacted by state-led lockdowns.
Flipkart, which as of last year was working to go public this year, said it has partnered with Vriddhi, Walmart’s Supplier Development Program in India, to organize webinars for small businesses to share best practices to ensure safety of workforce and provide insights to stay afloat amid the crisis.
“Through these testing times it is our constant effort to support our seller partners who face immense operational challenges as a result of the pandemic. As a democratic marketplace, we want to ensure that our lakhs [hundreds of thousands] of seller partners are able to continue operations and keep the economic engine running,” said Jagjeet Harode, senior director and head of Marketplace at Flipkart, in a statement.
“With them and their family’s financial and health safety in mind, we have rolled out these initiatives that will bring them the much-needed respite to keep their businesses active.”
India has been reporting over 400,00 daily infections this week, more than any other nation, as the world’s second-most populated nation struggles to contain the second wave of the virus. Scores of firms, startups, investors and people alike are uniting to help the nation fight the virus, which has severely impacted the healthcare facilities.
Walmart-owned Flipkart is exempting storage and cancellation fees for sellers on its marketplace and also providing them with insurance coverage as the top e-commerce platform in India looks to maintain cordial relationships with more than 300,000 sellers who are facing severe disruption amid an unprecedented rise in the spread of…
