Fashnear technologies Private limited - Wrong shipping fee and reverse shipping fee being charged from the Seller by Meesho

I am a supplier with Meesho (www.meesho.com), a platform for online selling owned by Fashnear Technologies Private Limited, and currently have my shop named Vrindara in Meesho which is active since Jan ****. I have been selling ethnic wear for men at very competitive rates and to date have sold more than *,*** products and have received over **** orders, garnering a good reputation for my products with more than *** reviews and ratings. It must be noted that the because of severe competition and low rates, high-quality products being offered through Meesho, often the competitive advantage comes down to the price war among the similar products offered by different sellers.

About delivery fee and pricing: As per the site and the link given here: Meesho Commission Rate & Fee Structure | Meesho Supplier, 'Meesho’s shipping service allows you to focus on selling, while we take care of the shipping and delivery with only **% GST on the shipping charges'. Moreover, Meesho has partnered with various Third-party logistics partners (*PL) which deliver the product to various cities in India. The four *PL that Meesho has partnered with are Shadowfax, EcomXpress, XpressBees, and Delhivery. From <https://www.meesho.io/blog/meesho-accounts-for-**-of-national-third-party-logistics-shipments-emerges-as-the-single-largest-contributor> . And although there's no reference regarding calculating the shipping fee, usually they are calculated on the basis of the weight of the product and proximity or zones from the pickup point. The same is the case for a product that is being returned back to the supplier not amounting to RTO. See here: Learn More About Shipping & Delivery Charges for Meesho Supplier. This shipping fee is then added to the price set by the Seller and the final sale price is what is charged by the buyer. For example, if the product's final selling price is Rs. *** charged by the seller, and a shipping fee of Rs. ** is charged, to the buyer it will appear as Rs. ***+** delivery fee or Rs. *** with the delivery fee.

Why Shipping Fee Matters: Technically nothing is being charged finally from the seller as far as the shipping fee is concerned, except the GST on the shipping fee. The shipping fee, being added to the final price of the product, is ultimately being paid by the buyer anyway. Hence, since the buyer is paying Rs. ***, and the seller will only earn his share from Rs. ***, the pricing of the product often becomes a crucial deciding factor for the buyer. In such cases, even though the price of the product can be varied and decided by the seller, the shipping fee is not in the seller's control. Hence, incorrect calculation of the shipping fee being charged and non-transparency regarding it can also lead to a higher price being charged to the buyer who may in fact decide not to buy the product because of the price. Thus, incorrect calculation of shipping fee can lead to (i) higher price being displayed to the buyer, (ii) reduction in profit margins of the seller, and (iii) decrease in sales for the seller.

The Issue: In the present case, while uploading any product for selling, the package weight, i.e. the weight of the product after being packed and ready for handover to delivery, is asked for. The shipping fee is calculated on the basis of this package weight that the Seller mentions to Meesho. However, it is to be noted here that there is a huge difference between the package weight as mentioned by the Seller and as displayed and taken into the record by Meesho. For instance, one of the best-selling products in Vrindara is the product titled '***% Pure Cotton White Pant Cut Men Pyjama with Lastic Waist, Nara, Zip, and Two Pockets'. The packaging weight as mentioned by the complainant for the said product is *** gms, whereas the packaging weight as recorded by Meesho is *** gms. It is important to note that every product being sold by the Complainant has a difference in packaging weight as mentioned by the Complainant and Meesho. A detailed record of that is given in the excel file attached which states the difference in the package weight as recorded by Meesho and the actual package weight as provided by the Seller.

The Case till now: It is pertinent to note that this issue was only recently observed and it is presumed that this discrepancy has been going on since the Seller started selling as the difference (read increment) in shipping fee during this period has been insignificant. The issue was first observed on **th Aug and a ticket with the ticket ID ********. The issue was explained in detail citing the discrepancy in the product '***% Pure Cotton White Pant Cut Men Pyjama with Lastic Waist, Nara, Zip, and Two Pockets'. However, despite several reminders, explaining the issue over call, the issue was finally closed by citing the following statement 'We are happy to inform you that we have reduced the rate cards for reverse shipping/logistics fees across weight buckets as shown below for all customer returns. Please note that we have also changed the median weights of your sub-categories. This will change your reverse shipping charge as per your sub-categories. Please reach out to your AM for more details on these sub-categories. Note: We do not have any charges for RTO orders. This is only applicable to customer returns. This rate card is effective from **th Aug ****'. It is pertinent to note that despite this, the weight of the product and hence the shipping charges were not changed and that's why the Supplier has no option but to take the current action. It is also pertinent to note that the reverse shipping fee being charged by Meesho on a product returned to the seller by the buyer is also charged on the same basis.

Relief: It is clear that this is a serious issue that impacts the sale, profits, and business of the Supplier and despite raising a ticket in this regard and being assured of a resolution, no action has been taken and the Seller continues to suffer loss in terms of sales, reputation, and mental agony. For the same reason, the Seller asks Meesho to compensate for Rs. *,**,*** as damages resulting from the loss due to callousness from Meesho and mental and financial pain suffered due to Seller due to this. It must also be noted that in case of an unsatisfactory response from Meesho, the Seller shall be at liberty and has the right to pursue any appropriate legal action.