Flipkart’s zero commission sparks row

Several sellers of Flipkart are up in arms over a recent practice adopted by the e-commerce major, which they allege offers preferential treatment to a group of big sellers, referred to as alpha sellers, in terms of pricing of their products and commission rates.

The sellers have alleged that the practice, which in trade terms is referred to as ‘Pareto Flattening’, is a gross violation of the government’s Press Note 2, which prohibits marketplace e-commerce platforms from influencing product prices.