No more quick deliveries for your online purchases
Posted on: 02/Feb/2019 2:24:49 PM
The new e-commerce FDI policy has come to effect yesterday, Friday. With that, the wait time to receive your online shopping parcels will get extended to 4-7 days instead of the usual 1-2 days that the buyers have so far been enjoying.
This initiative is largely felt in Amazon where substantial product range is taken out from the platform in categories including mobile, grocery, electronics, fashion, etc. Cloudtail and Appario and a few other online sellers have even got non-existent on the platform. After inspecting the December quarter earnings on Amazon, it is found that the new policy shall affect the product selection as well as pricing, and Indian sellers.
In the December quarter, it is said that Amazon has faced a loss of $642 million while the same quarter the previous year was $919. This has come down by about 30 percent. This thin margin in Amazon’s business is said to be due to the aggressive spends on the platform. The overall global sales on Amazon saw $21 billion while the same as earlier $18 billion.
The main concern of Amazon is to reduce the impact towards sellers and Indian customers. The business hovers around pricing and convenience. The new rules do not seem to aid either of our focus. However, we will stick to the rules and regulations while evaluating the situation at the same time.
A statement is also rolled out by the Flipkart where it has clearly mentioned that it is disappointed with the government’s initiative. As Flipkart doesn’t hold any shares with large sellers, the impact on Flipkart is less. However, in the following weeks, the impacts are likely once the inventory runs out and the agreements with brands are restructured.
With the new regimen, third-party brand products are affected including that of in-house labels on Amazon. It is said that Cloudtail and Appario have got almost half of their volumes to Amazon which are made unavailable for sales now. Just portions of this are being shared to smaller sellers for which the delivery time is approximately 5 to 7 days.
