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
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.