The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper

    Myntra levies 'platform handling fee' of Rs 49-149 from buyers of lower value items


    Many buyers are charged an additional Rs 49-149 for their purchases depending on the values of their orders.

    Getty Images
    New Delhi: Myntra is levying a “platform handling fee” of Rs 49-149 from buyers of low-value items, a move that, according to people in the know, is aimed at shoring up its finances and reducing losses as the country’s largest fashion ecommerce portal is chasing profitability.

    “Myntra started this as they have bottom-line pressure,” said a person familiar with Myntra’s plans. He said Myntra began charging the fee after India started easing its countrywide lockdown in June.
    Liking this story?yesno

    For the last couple of months, many buyers were charged an additional Rs 49-149 for their purchases depending on the value of the order. The fee is waived when the order value is more than a certain amount.

    “Platform handling fee is the charge levied by Myntra Design Pvt Ltd for providing access to, and on account of your usage of, Myntra m-site (mobile site) and Myntra mobile app,” according to the details that pop up if a customer clicks on the fee details while checking out.

    Myntra Design is the company that operates the Myntra ecommerce platform. It is owned by the Flipkart Group.

    Myntra said the platform fee is charged for an “amalgamation of services” that it offers to customers. It, however, did not specify on what are the services it was referring to.

    “This fee is clearly delineated during check-out, offering full clarity to the customer about the total transaction value," a spokesperson said, in an email response to ET’s request for comment.

    Myntra’s move hasn’t gone down well with many consumers who took to social media to vent their anger. “This is called robbery @myntra. Nice style to Fool ppl,” a person wrote on Twitter. “149 RS for providing access to Hence I am Saying #BIGno to #Myntra #BycottMyntra,” another tweet from the same account read.

    “@myntra My account charged with platform handling fee. Disappointed with the fair usage policy and have stopped shopping from Myntra,” another person identified as Madhurima Patil tweeted on October 30.

    A person in the know said Myntra is combining delivery charges on small valued items and calling it a platform handling fee.

    Almost every ecommerce platform including Flipkart, Amazon and Ajio charge a delivery fee on low-value purchases.

    Myntra sells more than 5,000 Indian and global fashion labels including Nike, Adidas, Puma, Levis, Diesel, Harley-Davidson, Ferrari, Timberland, US Polo, FabIndia and Biba. According to the Bengaluru-based online retailer, it services more than 27,000 pin codes across the country.
    Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.
    The Economic Times