1. Mayank Reply

    kindly check with ur CA or consultant Tax Lawyer …..

    on shipping charges … the seller has to pay tax ….

    coz customer is paying total amount ( price + Shipping)

    and tax is always calculated on the price paid by the customer …


  2. Good article, covers almost each and every drawback that we are facing while selling online

  3. Ashish Rastogi Reply

    In today’s time each site apply commission and service tax on the shipping charges, that’s a very old trick where sellers decrease the price and increase the shipping price so can save the commission and service tax… but now major sites like Amazon,Ebay all charged the commission + service tax on shipping. So update urself before giving a interview.

    • Hey Ashish, Yes some sites do charge commissions on shipping charges like Amazon’s Shipping holdback but many still do not.

      If you are availing their logistic services, there is service tax liability to the marketplace but not on the shown amount, it will be on the actually charged amount for the logistics service .

      But if you are not using marketplace logistics, and you show the charge separately, it will not be involved in any calculation except for those who charge commission on shipping charge. So essentially you will still be paying ST on commission charged on shipping charge and not the shipping charge that you show.

  4. Shubhobroto Sen Reply

    So True. Very well written.

  5. Dear Sugam

    I agree with every step and experience you mentioned, from last three years I am in this business selling only Books.
    Returns is really very crucial phase, which sellers used to miss.

    Hope maximum sellers are able to read this article.

  6. We are in home category. Many times wrong returns are received and delivery boys do not allow to give open delivery. Since thete is no proof of wrong products received no claim is accepted.Accounting is a major hazard we are facing in Online.

  7. Abubakar Reply

    Friends, good article but, not covered everything.
    With these only sellers who are already selling can understand. It may be around 20% covering the problems.
    But, really as an online selling expert. I can say. e-COMMERCE is not god for everyone.
    It is not EASY.
    It is very HARD and consume lot of time as compared to traditional offline business. Also risk is very very high.
    If you really want to experience before starting complete business. Then I would suggest. You list few items like toys, clothes, balloons etc
    Then check the returns and other worst issues.
    Sell on worst sites like Amazon, Flipkart, Snapdeal, Paytm etc which said to be top Indian Ecommerce sites. Online shopping sites. But, they are top only because they are becoming top by cheating sellers.
    They are cheating – doing day robbery but, still our LAW cannot catch them. Because, they are cheating to sellers. And sellers are the weakest and helpless people in India.

    As a Buyer – I can say they are king. But, as a seller they are like beggars.

    I started selling on Amazon and within a month I got few others where 90% return. All these returns are 100% illegal.

    some returns are before I dispatch. Like worst buyer placing order in the evening and immediately next day cancelling order. Where I already packed, prepared bills, incurred lot of expenses but, all goes WASTE.

    Another type of return is, A buyer place order. After 2 days when order is still on the way. Cancel it. So, order get back to me after 3-5 days. All money wasted. Packing money, papers, shipping money everything. All that money I MUST pay. No choice for that. So, with the hope of getting Rs.10 on order. I lost Rs.70 that money again I need to cover up after having 7-8 sales.

    Another type of return. A fraud buyer purchase item. Use it. And throw on the face. He use a toy. He even burst balloons and return it.
    Here total order value is wasted. Plus I also paid shipping charges.

    Apart from these issues there are lot of other issues. Like you need to purchase packing material. You need to pay various fees. Also these fraud online big cheaters like Amazon, Snapdeal even charge you wrong weight charges. Like if your item is only 100 grams, they charge you for Rs.1.5 kg etc.

    Apart from these issues, buyers also steal items from your parcel and return it. Like replacing good chargers with bad one OR stealing items from your device.

    All these cheating is possible at Indian eCommerce. Here no one can caught you. Really if thieves know these weak points, they will stop stealing items from houses. They will purchase online and steal it.

    You might have heard few cases where a buyer and his mother cheated few lakhs to Flipkart by purchasing items and then replacing with some waste mobile phones etc.

    Also you might have heard a case where a person from Secunderabad constantly purchase few items and then place chinese phones and replace with that.

    these are just few cases. May be one out of 500 cases.

    So, all these type of issues can occur at Indian ecommerce at Amazon, Flipkart, Snapdeal etc

    So as a honest seller would you still consider selling on these websites?

    Selling ONLINE is too too dangerious in India. If you are common, middle class or poor person.

    Big players can play because they got lot of money.

    As of now there is no sign of relief from government to rescue sellers. Actually this is very dangerious to the nation but, still no one from government even thinking of these.

    So, online sellers, send your complaints with details of issues, frauds you are facing. And send that directly to Modi government. Finance minister and all higher departments.

    Also file cases against Amazon, Flipkart, Snapdeal etc for charging you illegal amounts. Like charging you return charges, courier charges even after knowing you are not responsible for that.

    CII and other organizations should raise a voice against these Amazon, Flipkart, Snapdeal.

  8. Cheeetos Reply

    Marketplaces like F..k..Az..S..D…Sklu.etc…..etc..are exploiting small sellers..

  9. Ambrish Kumar Kushwaha Reply

    Thanks for giving relevant information from this article….

  10. Anurag Reply

    Really good article… Every aspects hits the target… Gr8

  11. Well Written !!

    after reading the article i felt like looking myself in my day-day office routine from a window.


  12. Madan Bhirud Reply

    Excellent insight! truly informative for new aspiring sellers.
    I think indianonlinesellers.com should form sellers union and take on with these fraud marketplaces.

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