Flipkart introduces additional fee for Cash On Delivery orders; Know how much you pay

Flipkart doesn't use to charge for Cash On Delivery orders.

Homegrown e-commerce retailer Flipkart has introduced an additional fee for all cash on delivery orders irrespective of the price of the goods. However, no such fee is introduced for prepaid orders. It may be noted that Flipkart charges delivery for products under a certain price bracket. "Delivery charge varies with each Seller....For Products listed as Flipkart Plus, a Rs 40 charge for delivery per item may be applied if the order value is less than Rs 500. While, orders of Rs 500 or above are delivered free," reads details posted on Flipkart's website.

Flipkart wrote on its website that delivery charges are not hidden charges and are charged extra depending on the seller's shipping policy. Earlier, Flipkart doesn't use to charge for Cash On Delivery orders. Now, even if you are ordering a product of Rs 150 or Rs 15,000 under COD policy, you will be required to pay Rs 5 per order besides the delivery charges if applicable.

"Due to handling costs, a nominal Rs 5 will be charged for orders placed using this option (COD). Avoid this fee by paying online now," reads the description under the cash-on-delivery option.

It may be recalled that Flipkart has already introduced a Rs 29 secure packaging fee for smartphone orders. This comes amid the e-retailer saw its net loss widen 51 per cent to Rs 4,362 crore during the financial year 2022. Levying these charges could be one of the ways for Flipkart to increase its revenue.

Flipkart's total expenses for the fiscal were Rs 15,020 crore. The company reported a 31 per cent year-on-year jump in its revenues to Rs 10,659 crore for the financial year 2022. The company's operating revenue jumped to Rs 10,477 crore in FY22 but operating loss or Ebitda loss also increased Rs 3925 crore in FY22 from Rs 2267 crore in FY21.

Flipkart recently completed four back-to-back sales between September 23 and October 23 that included the Big Billion Days Sale, Big Dussehra Sale and Big Diwali Sale Part 1 and Part 2.