Live
- TDP achieves milestone with 73 lakhs membership registration, says Chandrababu
- South Korea: Main Oppn hails Yoon's impeachment motion passage as 'victory for people, democracy'
- RG Kar issue: Tension flared over parallel protests by Congress, SUCI(C) outside CBI offices
- After furore, Central Railway revokes order to raze Lord Hanuman Temple at Dadar
- Now hoteliers' body in Bengal's Alipurduar shut doors for Bangladeshi tourists
- District Collector Encourages Students to Utilize Government Facilities for a Better Future
- Per capita availability of fruits, vegetables increases in India
- FII buying reaches Rs 22,765 crore in Dec as economic growth stays resilient
- National Energy Conservation Day 2024: Date, Importance, and Easy Ways to Save Energy
- Gastronomic trouble: After 'disappearing' samosas Himachal CM in row over red jungle fowl
Flipkart, Amazon may fail to meet vendor sales norm this year
\"It is an accounting issue that normally has to be collated at the end of the fiscal year,\" said one of those cited above. \"The 25% data can be given over a period of time and not immediately.\"
NEW DELHI: Leading ecommerce companies may not be able to comply immediately with the recent stipulation to cap any vendor on their platforms at 25% of total sales. They will only be able to do so after the current financial year ends, said people aware of the matter.
"It is an accounting issue that normally has to be collated at the end of the fiscal year," said one of those cited above. "The 25% data can be given over a period of time and not immediately."
The government last month legalised the marketplace models operated by Amazon India and homegrown rivals Flipkart and Snapdeal, allowing 100% foreign investment in such businesses. Apart from the 25% restriction, they have to function strictly as technology platforms for buyers and sellers.
The government had said the rule would take effect on March 29, the day Press Note 3 was issued, leaving many ecommerce companies worried about compliance, said those cited above. For example, both Amazon and Flipkart have vendors that exceed the 25% threshold on their platforms. One of the largest vendors on Amazon India is Cloudtail, owned by Prione Business Services, which is in turn held by Amazon Asia and Catamaran.
Cataraman is the personal investment vehicle of Infosys founder NR Narayana Murthy.
"We would not like to speculate on the share of Cloudtail or any other seller till we close our books for the year and given how recent the Press Note 3 is," an Amazon India spokesperson said in an emailed reply. "We will put a process in place to inform sellers in case they are close to or likely to breach the 25 per cent guidance."
Source: techgig.com
