India’s largest ecommerce portal, FlipKart has stopped delivering orders above Rs 10,000 in Uttar Pradesh, including NCR regions of Noida and Ghaziabad.
The company informed India Digital Review that "We keep various factors in mind while arriving at our service matrix. This could be our shipping partners in a state, our delivery capabilities or order volumes. These are purely business decisions and change from time to time depending on circumstances."
However, it did not respond to queries on whether fraud cases or bounced orders were the reasons that forced company to take the decision.
In a TOI report, portal's shipment delivery staff in Lucknow divulged that “There were incidents in which customers ordered expensive goods and then refused to accept them. Sources said many people logged on to Flipkart and ordered "just for fun".
"It takes a minimum of 10 days to ship a product to a customer and back to the company if it's not purchased. It causes loss to sellers, selling through Flipkart, as their products get blocked in transit," a senior Flipkart executive told the daily.
Delivery of large goods incurs more logistical and transportation cost in case of expensive products, besides state taxes. Rejection from the customer leads to heavy loss to the seller and the portal.