Goodbye discounts Flipkart, Amazon will have to downsize WS Retail, Cloudtail
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he government’s latest directive on e-commerce will force Flipkart and Amazon to reduce the dominance of certain sellers 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.
WS Retail on Flipkart’s platform and Cloudtail on Amazon’s platform account for substantial shares of the sales on these platforms. The exact shares have not been publicly disclosed, but both are believed to have shares of well over 25%.
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 NR Narayana Murthy’s Catamaran Ventures, has become the largest seller on Amazon India’s platform and some media reports have said it contributes to nearly 40% of sales on the platform.
Vivek K Chandy, partner in law firm J Sagar Associates, said the new guidelines could affect marketplace e-commerce entities that 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 restricting 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.
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@lostdrms wrote:
They will find some way out:p
i hope amazon starts treasure hunt before this new rule comes to implementation.
One question:If they have to limit cloudtail by 25% What would amazon do? I think they sell almost 40% of its sales. Attracting new sellers would be difficult in a short period of time. May be the only way would be to cut down sales of cloud tail.
25% of sales means revenue or orders?
And how can they keep 25% restriction? If WS/CT are the only sellers for flash sales then at that time if they crossed 25% limit does it mean they cant sell that product anymore?
BRACE YOURSELF! – Offers like Never before on gift cards are coming on your way. 
They will split up their own share!! Cloudtail 1,2,3,4!! U can expect more number of sellers in upcoming days for each category!
@TRAFFIC wrote:
They will split up their own share!! Cloudtail 1,2,3,4!! U can expect more number of sellers in upcoming days for each category!
@lostdrms wrote:
They will find some way out:p
@bookface wrote:@lostdrms wrote:
They will find some way out:p
i hope amazon starts treasure hunt before this new rule comes to implementation.One question:If they have to limit cloudtail by 25% What would amazon do? I think they sell almost 40% of its sales. Attracting new sellers would be difficult in a short period of time. May be the only way would be to cut down sales of cloud tail.
25% of sales means revenue or orders?
And how can they keep 25% restriction? If WS/CT are the only sellers for flash sales then at that time if they crossed 25% limit does it mean they cant sell that product anymore?
Already doing it http://www.desidime.com/forums/dost-and-dimes/t...
@VaibhavJain wrote:
BRACE YOURSELF! – Offers like Never before on gift cards are coming on your way.
Post pe Post….exam khatam ho gaye kya mere Dost, to phir kahe ho itne Sust
No VDA…Active 24×7 on DesiDime???
Now as you are free and your a*BC* is not good, DD will arrange you to join Remo D’souza ki ABCD classes…
@A2Zdeals wrote:@VaibhavJain wrote:
BRACE YOURSELF! – Offers like Never before on gift cards are coming on your way.
Post pe Post….exam khatam ho gaye kya mere Dost, to phir kahe ho itne Sust
No VDA…Active 24×7 on DesiDime???
Now as you are free and your a*BC* is not good, DD will arrange you to join Remo D’souza ki ABCD classes…
kuch to ayega , nahi to log online samaan ni khareedenge bc 
They will find some way out:p