Complaints against e-commerce companies see massive jump in last five years

While there's no lack of euphoria in the e-commerce sector with the massive growth in the number of online orders in half a decade, there is a grim reality that goes hand in hand.

On an average, the number of complaints received against these e-commerce companies have also grown four-fold over a period of four years.

As per a written reply in Rajya Sabha on December 12, 68,506 complaints were received against e-commerce companies during April-November in this financial year. This is against 15,168 complaints that were received during the financial year 2014-2015.

For financial year 2018-2019, the data has been collected till the month of November. However for 2014-15, the data pertains to the complaints received from May to March.

Of the 68,506 complaints received against e-commerce companies during April-November in this financial year, little less than 50 percent of them have addressed, according to a written reply in Rajya Sabha today.

However, there has been a nearly 13 percent decline in the number of complaints received by National Consumer Helpline (NCH), Minister of State of Commerce and Industry, CR Chaudhary, said.

NCH falls under the administrative control of department of consumer affairs to receive complaints and also partners with some companies to resolve consumers’ issues.

"This is the alternate grievance redressal method, and is a completely voluntary initiative taken up by these companies. As part of this convergence programme, NCH gives access to the individual convergence company to address these complaints as per the company’s own internal grievance handling system," Chaudhary said.

Companies which have voluntarily partnered with NCH as part of the convergence programme, directly respond to these complaints according to their redressal process and revert by providing a feedback to the complainant on the portal directly, he said.

Thousands of complaints pour in every year despite the massive jump in the number of e-commerce companies and funding received by them.

During January-March quarter of the calendar year, the start-ups raised over $1.8 billion funding, a whopping 80 percent growth as compared to the corresponding quarter of the previous year when the sector raised $982 million, Moneycontrol had earlier reported.