Sellers on ecommerce marketplaces are wary about products finding buyers as leading e-tailers Amazon and Flipkart have yet to provide clarity on demand despite a government directive allowing sale of non-essential items after April 20.
Flipkart has notified sellers via email that they should prepare to start processing and dispatching orders, while Amazon has told them that it was awaiting clarity on the revised government guidelines.
“For us, the buck stops at how Flipkart and Amazon react to the government orders and what they end up prioritizing,” said the seller of a hygiene brand.
“For example, on the same MHA guidelines, Flipkart interpreted it as sales can begin from April 20… Amazon said they seek clarity… This makes our business decisions very uncertain because more than 80% of our sales are driven by these platforms,” he added.
Another seller echoed the same views, telling ET that Amazon had him not make heavy investments on inventory till at least May 15. “They are unsure about demand, and their own potential to service demand as well,” said an executive at a consumer products brand.
On Wednesday, ET reported that Flipkart, Snapdeal and Paytm Mall were preparing to resume full operations from April 20, after the home ministry revised guidelines allowing ecommerce to function in its entirety.
Amazon has, however, sought clarification on whether it can sell non-essentials. Marketplaces have said they expect demand through work-from-home essentials, such as small electronics, apart from smartphones, laptops, home appliances and personal care items.
The demand, they say, is based on what consumers have been searching on their websites over the last three weeks.
“The revised MHA guidelines were announced just yesterday (Wednesday) and we received clarity on some items only today (Thursday), so while we want to start informing sellers, it will take a few days,” said a senior executive at a leading e-commerce marketplace. “We don’t expect demand for all items, but certainly work-from-home essentials, some electronics and essentials.”
The All India Online Vendors’ Association (AIOVA), which represents 4,000 online sellers, said they were seeking additional clarity on issues such as no-returns during the lockdown period, insurance for staff in case they get infected by the Covid-19 virus and relief from fees and penalties to recover losses and also pass on the benefit to consumers.
“The government should clear the confusion and engage with stakeholders, as well understand reservations of sellers,” an AIOVA spokesperson said.
Some sellers pointed out that they were apprehensive about starting operations since consumers would tend to buy from sellers that have a huge amount of inventory stocked at fulfilment centres of e-commerce marketplaces, as these typically are shipped quickly.
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