Separator

Meesho Tightens Control on Product Returns

Separator

According to reports, sellers are up in arms over ecommerce firm Meesho's move to tighten control on product returns.

Over the past few weeks, these sellers – especially in Surat, one of the largest hubs for fashion and apparel merchants - have given Meesho negative reviews and ratings on its app and stopped processing orders through the platform.

Meesho undertook changes to its product returns policy following feedback from its third-party logistics partners, the sources added. Returns comprise a big cost area for e-commerce players in India as it adds to logistics expenditure.

The late-stage startup, which specializes in selling low-priced apparel, home and lifestyle items, has streamlined the returns policy at a time when internet firms are cutting costs because of a funding squeeze.

Meesho has consistently attempted to reduce operating costs and conserve cash. Its plans to raise at least $1 billion last year did not materialize due to multiple issues, including a valuation mismatch.

Meesho’s sellers have seen sales decline after a bump-up during the festive season last year, several merchants told ET. Other ecommerce marketplaces like Flipkart and Amazon India have also clocked moderate growth in recent weeks.

As per reports, e-tailers have clocked incremental gain in sales during the ongoing Republic Day sale period, though the numbers have not yet been fully assessed.

Meesho was more lenient with these returns, and many a time, merchants –knowing that large volumes of products were being returned – will not accept these products and claim compensation after a stipulated period of time

The SoftBank-backed firm has put in place technical changes, new barcodes and video verification of the product packing, after the Bengaluru-based company started implementing thorough checks on returned products at the beginning of the year.

Meesho was more lenient with these returns, and many a time, merchants –knowing that large volumes of products were being returned – will not accept these products and claim compensation after a stipulated period of time, according to the reports.

Current Issue
Compliance And Quality Assurance(CAQA): Offering Tailor-Made Quality Assurance & Risk Management Solutions