India’s second biggest e-commerce site Myntra will charge Rs 10 on every order, irrespective of the order value. If users not registered on Myntra places an order worth less than Rs 1,000, then this is an additional charge to the existing Rs 99 fee. Myntra spokesperson confirmed the convenience charges.
The move comes after the e-commerce website warned users about exceeding the threshold of their return order volumes, after which they will either be charged a significantly higher fee of Rs 149 or have their accounts suspended.
Any incremental charges like convenience charge is a good step as the return ratio is as high as 40%, and a minor charge like this would discourage the return volume. Hence, these moves show that the companies are focused on profitability and trying to lose customers who tend to return more and increased focus on customers who actually will derive profitability,” said Karan Taurani of Elara Capital.
The company has also trimmed its return window from 30 days to 14 days. Industry majors like Ajio, Nykaa Fashion, and others have also followed suit.
In the frequently asked questions (FAQ) section on the website, the fee has been explained as: “Myntra levies convenience fee for providing technical expertise, brand aggregation, post-sales services such as consumer support and escalations. The fee helps mitigate various costs incurred by the platform and ensures smooth running and efficient customer service.”