An Ahmedabad-based seller has reportedly sent a legal notice to Meesho, an ecommerce platform, for alleged unfair trade practices related to product returns. The seller claims that most of their orders are being returned citing reasons including damaged or wrong products, but the returned products were found to be undamaged after receiving them from customers. The seller has blamed courier partners for neglecting their duties, which led to loss and hassle. Meesho has responded by saying that it allows sellers to choose their preferred logistics provider and that the platform has seen a reduction in seller claims by 30% since the initiative was rolled out in January.
In FY22, Meesho reported a net loss of INR 3,247.8 Cr, with logistics and fulfillment expenses contributing 43% to its total expenditure. While the startup saw its total expenses soar to INR 6,607.2 Cr in FY22, up more than 400%, its logistics and fulfilment expenses stood at INR 2,829.4 Cr in FY22 and contributed 43% to the startup’s total expenditure. The financial results of Meesho for FY22 show a significant increase in net loss from INR 498.6 Cr in the previous fiscal year to INR 3,247.8 Cr in FY22, indicating a 550% increase in losses. During the same period, the company’s total expenses rose to INR 6,607.2 Cr, an increase of more than 400%. Logistics and fulfilment expenses stood at INR 2,829.4 Cr in FY22, contributing 43% to the company’s total expenditure.