Seller sends legal notice to Meesho over alleged unfair trade practice

• ByStartupStory     |    April 8, 2023

An ecommerce platform, Meesho, has reportedly been served with a legal notice by a seller based in Ahmedabad for engaging in “unfair trade practice.” The notice alleges that a large number of the seller’s orders have been returned by customers citing reasons such as wrong or damaged products. However, upon receiving the returned products, the seller claims that they were not damaged. The Hindu BusinessLine reported on the matter.

An ecommerce seller from Ahmedabad has accused Meesho of “unfair trade practice” and has issued a legal notice to the platform. The seller alleges that courier partners have neglected their duties, resulting in loss and hassle, as customer details are not shared with sellers. The seller has also called for Meesho to provide a proper resolution for issues related to damaged products. Meesho’s spokesperson stated that sellers can choose their preferred logistics provider and since January, approvals by logistics partners have increased by 2X, and seller claims have decreased by 30%. This incident is not the first time Meesho has faced seller discontent over its return policy, with protests occurring in January.

 

Meesho previously faced seller protests over its return policy, leading to the introduction of new technical changes, such as barcodes and video verification of product packaging. Meesho’s spokesperson stated that their return policies are competitive and fair, with sellers only allowed to raise claims within 7 days of receiving returns.

Return logistics, which is more expensive than forward logistics, forms a significant part of ecommerce deliveries’ total logistics costs. Meesho, based in Bengaluru, reported a net loss of INR 3,247.8 Cr in FY22, up 550% from the previous fiscal year’s INR 498.6 Cr. The startup’s total expenses increased to INR 6,607.2 Cr in FY22, with logistics and fulfilment expenses accounting for INR 2,829.4 Cr and contributing 43% to its total expenditure.

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