When you are a seller on Flipkart, you receive payments as prescribed by Flipkart norms.
However, in certain cases, the following eventualities may arise:
- The buyer placed the order, but the seller canceled it.
- The buyer placed the order but later cancels it or refuses to accept it.
- The buyer returns the goods.
In this article, you will know how buyer and seller cancellations affect your payments.
Let us understand the payment system involved in a particular sale transaction on Flipkart.
The buyer pays for the total order value. It includes the item value, the marketplace fee, commission fee, collection fee, fixed fee, shipping fee, and the taxes. Ideally, the seller received the total item value after taxes and marketplace fee deductibles.
Buyer cancellation
If the buyer placed an order and canceled it before the seller could mark it RTD or Ready to Deliver, and in case where the full amount has already been paid buy the buyer, the full amount is refunded to the buyer. Even the tax is automatically reversed.
In such a scenario, neither does the seller receive any amount not does he bear any cost.
The same principle applies when the order is in RTO or Return to Origin.
What happens if the seller cancels an order?
Cancellation before marking RTD or product not handed over to logistics partner post marking RTD even after multiple pickup attempts attracts fees from the seller. The simple reason for the same is that at the time of a buyer placing an order, the seller expects certain services from Flipkart. On cancellation, not only does the act bring disrepute to the selling portal, but it also makes the buyer lose confidence in Flipkart as well as its authorized sellers.
If the cancellation of the product is made before marking RTD:
The commission fees, as well as allied taxes are charged from the seller. In addition, even the product canceled is delisted for a week.
If the seller cancels the order after marking RTD:
The portal cancels the order if the pickup is not made successfully even after three attempts. Since the fault is on the part of the seller on non-delivery of the product, Flipkart considers it as seller cancellation. However, the seller cannot cancel such a product from the system himself. The same is initiated by Flipkart itself. In such a case, the seller’s account is charged a cancellation fee in addition to related taxes. The same is much higher than the charge on the seller for cancellation before marking a product RTD.
As a seller, it is the duty of the seller to avoid such cancellations and related charges since the same leads to loss of reputation of the seller on the portal.
A suggestion that the seller may consider improving their ratings is to update their stock file to avoid taking orders that are not in their inventory in the first place. This will help to ensure that items ordered are in stock and so that it can be delivered well in time.
Seller cancellations do have an adverse impact on the seller and Flipkart. A seller, in order to improve their ratings on the portal, as well as to increase customer satisfaction, should put in all efforts to ensure that returns and cancellations are minimized by delivering top quality products well within the time frame.
