Now, Ven­dors Raise the Red Flag on Snapdeal

Mer­chant as­so­ci­a­tions cau­tion mem­bers about sell­ing on the plat­form cit­ing ris­ing credit risk

The Economic Times - - Brands & Companies - Mugdha.Vari­yar



Ben­galuru: On­line mar­ket­place Snapdeal, which is in the process of lay­ing off hun­dreds of em­ploy­ees, is now also fac­ing heat from on­line sell­ers, with hun­dreds hav­ing al­ready pulled out while sev­eral more threaten to quit cit­ing con­cerns of pay­ment de­faults.

The All In­dia On­line Ven­dors As­so­ci­a­tion (AIOVA), a body of over 2,000 on­line mer­chants, has cau­tioned all its mem­bers and re­quested them to stop sell­ing on the plat­form cit­ing credit risk to the tune of ₹ 300-400 crore that the com­pany owes all its sell­ers as pay­ments col­lected for the sale of goods.

An­other seller body, the eCom­merce Sell­ers As­so­ci­a­tion of In­dia has also cau­tioned its 1,500 mem­bers to ei­ther stop sell­ing on Snapdeal, or to en­sure that their dues from the com­pany don’t run high.

Snapdeal said it has over 3 lakh sell­ers on the plat­form. “There is ab­so­lutely no con­nect be­tween the steps taken to ra­tio­nalise the team and rou­tine busi­ness op­er­a­tions, in­clud­ing reg­u­lar pay­ment of seller dues. All dues, in­clud­ing to­wards sell­ers, con­tinue to be set­tled as per es­tab­lished pro­cesses and time­lines with­out any change. Any ap­pre­hen­sion in this re­gard is with­out ba­sis. Busi­ness at Snapdeal con­tin­ues to grow ste- adily to­wards prof­itabil­ity and all sell­ers’ dues con­tinue to re­main fully se­cure, as at all times. In case of any query, sell­ers part­ners are ad­vised to con­nect with the com­pany di­rectly and not pay heed to base­less ru­mors, in­clud­ing un­ver­i­fied me­dia re­ports,” said a Snapdeal spokesman.

AIOVA on Tues­day also sent a for­mal mail to Com­merce min­is­ter Nir­mala Sithara­man seek­ing in­ter­ven­tion, cit­ing the ex­am­ple of be­ing shut down. An AIOVA spokesper­son told ET that over 300 mem­bers have stopped sell­ing on the plat­form com­pletely over the past year due to pay­ment risks and drop in ship­ments.

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