Now, Vendors Raise the Red Flag on Snapdeal
Merchant associations caution members about selling on the platform citing rising credit risk
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 AskMeBazaar.com 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.