Flip­kart to Cut Shelf Space for WS Re­tail

To con­form with new rules, etailer to dras­ti­cally cut con­tri­bu­tion of ven­dor to to­tal sales and bulk up mar­ket share of other sellers

The Economic Times - - Front Page -

Sa­gar Malviya & Chaitali Chakravarty

Mum­bai | New Delhi: In­dia’s ecom­merce leader Flip­kart will dras­ti­cally scale down the con­tri­bu­tion of WS Re­tail, still the largest seller on its plat­form, to con­form with new rules that stip­u­late no ven­dor can ac­count for than a fourth of to­tal sales on an on­line mar­ket­place. This process will take place in the next 12-18 months, said peo­ple aware of the plan.

Flip­kart will in­stead fo­cus on bulk­ing up mar­ket share of other sellers so that they dom­i­nate sales. Mo­biles and consumer elec­tron­ics, the two big­gest seg­ments, will in­creas­ingly be sold via new ven­dors, not through WS Re­tail.

“The con­tri­bu­tion of WS Re­tail will re­duce to lower sin­gle dig­its and even­tu­ally (be) neg­li­gi­ble in the next six-eight quar­ters as there are legacy is­sues with its op­er­at­ing model that ques­tion Flip­kart’s FDI com­pli­ance,” said one of the per­sons cited above.

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