Skip to content
January 30, 2023
  • About
  • Advertise
  • Contact Us
  • Twitter
  • LinkedIn
  • Facebook
  • RSS
  • Privacy Policy
  • NewsLetter
IT Voice | Online IT Media | IT Magazine

IT Voice | Online IT Media | IT Magazine

IT in Depth

Primary Menu IT Voice | Online IT Media | IT Magazine

IT Voice | Online IT Media | IT Magazine

  • Home
  • All News
  • Business Leaders
  • Interview
  • e-Magazine
  • ICANN
  • Videos & Byte
  • Quiz
  • News

Flipkart, Amazon Will Have To Downsize WS Retail, Cloudtail

March 30, 2016 itvoice

The government’s directive on e-commerce will force Flipkart and Amazon to reduce the dominance of certain Facebooksellers on their platforms. The directive says no vendor or their group companies can account for more than 25% of the overall sales on a platform. In addition, the new policy has come as a big blow to Amazon that has been actively lobbying for FDI in inventory-based model of e-commerce. The policy does not allow FDI in this model.

WS Retail on Flipkart’s platform and Cloudtail on Amazon account for substantial shares of sales. The exact shares have not been publicly disclosed, but both are believed to have shares of well over 25%. In addition, Amazon with more than $100 billion in revenues, will have to do without the inventory-based model that gives it a huge competitive advantage in other markets since it allows the company to buy goods in bulk at a cheaper rate and pass on the savings to consumers. Currently, along with Flipkart and others, it follows the online marketplace model here that allows independent sellers to sell directly to consumers on its website.

WS Retail’s turnover tripled to over Rs 10,000 crore in 2014-15, compared to the year before. WS Retail sells a range of products, from shoes to home appliances and electronics. Cloudtail India, a company backed by N R Narayana Murthy’s Catamaran Ventures, has become the largest seller on Amazon India’s platform and some media reports have said it generates nearly 40% of sales on the platform.

Vivek K Chandy, partner in law firm J Sagar Associates, said the new norms could affect marketplace e-commerce entities which have only a few vendors.

Vivek Gupta, partner in BMR Advisors, said, “While permitting 100% FDI in marketplace models, the government wants to ensure that marketplaces do not start acting like retailers. And hence, the policy contains safeguards, limiting their role to being facilitators rather than actual sellers — these restrictions include casting no influence on pricing, playing no role as regards warranty and limiting dominant position for a single seller on the platform.”

IT industry body Nasscom said containing sales of a vendor to only 25% of the sales in the marketplace may prove to be restrictive, more so if the vendor sells high-value items. “The industry might face difficulties in case of sale of electronic items, where a vendor maybe offering exclusive access to certain items or discounts,” it said.

Related

Tags: amazon india twitter, flipkart amazon twitter banter, flipkart amazon twitter battle, flipkart and amazon comparison, flipkart and amazon competition, flipkart and amazon coupons, flipkart and amazon eye biyani co, flipkart and amazon eye biyani company, flipkart and amazon twitter, flipkart and amazon twitter war, flipkart and amazon war, flipkart facebook, flipkart instagram, flipkart online shopping, flipkart twitter page, flipkart youtube, jabong, Junglee, myntra, sachin bansal, Shopclues, snapdeal offers, snapdeal sale, snapdeal twitter

Continue Reading

Previous Galaxy S7 Active Leaked By Samsung
Next NTT Data to acquire DELL’S services Business for over $3B

Trending Story

  • Sanjeev joins from Wipro Limited where he was Chief Operations Officer and a member of Wipro Executive Board
    Sanjeev joins from Wipro Limited where he was Chief Operations Officer and a member of Wipro Executive Board
  • Fuji Electric Appoints Redington As Its National Distributor For  Energy Division Products
    Fuji Electric Appoints Redington As Its National Distributor For Energy Division Products
  • Pre-budget Expectation Quote 2023-2024 : ViewSonic India- Mr Muneer Ahmad, Vice President, Sales and Marketing, ViewSonic India
    Pre-budget Expectation Quote 2023-2024 : ViewSonic India- Mr Muneer Ahmad, Vice President, Sales and Marketing, ViewSonic India
  • Businesses use technology to advance the FinTech sector
    Businesses use technology to advance the FinTech sector
  • Schwing Stetter India unveils the 25th year - silver jubilee celebration logo and tagline
    Schwing Stetter India unveils the 25th year - silver jubilee celebration logo and tagline

Follow Us

IT Voice Latest Magazine Edition

IT Voice Diwali Edition 2022 IT Voice December 2022 Edition

You may have missed

  • News

Tips and Tricks for Keeping Your Data Safe this Data Privacy Day- Sandeep Bhambure, Vice President -India & SAARC, Veeam Software

January 28, 2023 Saumya Sharma
  • News

Quote for Data Privacy Day- Balaji Rao, Area Vice President, India SAARC, Commvault

January 27, 2023 Saumya Sharma
  • News

Fire-Boltt introduces three power-packed smartwatches- Saturn, Talk 3, and Ninja-Fit exclusively for the offline market

January 27, 2023 Saumya Sharma
  • News

Pre-budget Expectation Quote 2023-2024 : ViewSonic India- Mr Muneer Ahmad, Vice President, Sales and Marketing, ViewSonic India

January 27, 2023 Saumya Sharma
  • News

Sanjeev joins from Wipro Limited where he was Chief Operations Officer and a member of Wipro Executive Board

January 27, 2023 Saumya Sharma
  • About
  • Advertise
  • Contact Us
  • Twitter
  • LinkedIn
  • Facebook
  • RSS
  • Privacy Policy
  • NewsLetter
Copyright © IT Voice Media Pvt. Ltd. All rights reserved. | CoverNews by AF themes.