Convenience Fees: A New Normal

E-commerce and food delivery platforms are charging convenience fees.  Explore More>>

Growing Trend

Companies like Nykaa Fashion, Myntra, and Ajio introduce 'convenience' or 'fulfilment' fees on orders, making e-commerce costlier.

Fee Variation

These fees are typically 0.5-1% of the average order value (AOV). For instance, Nykaa charges Rs 29, while Myntra levies Rs 15.

Food Delivery Trend

Swiggy and Zomato introduce fees; Swiggy started at Rs. 2, and aims for Rs. 5, while Zomato follows with platform fees for revenue boost. It adds significantly to their daily revenue.

Profit Strategy

E-commerce firms aim to boost profitability with these fees, capitalizing on consumers' willingness to pay for convenience and comfort.

Returns Handling

Additional fees help absorb logistics costs and discourage multiple-item orders that result in returns.

What Can Customers Do?

Customers may bundle multiple orders together to avoid paying convenience fees multiple times, increasing companies' average order values (AOVs).