Amazon India has asked many of its sellers to take back their inventory from warehouses by Friday, keeping in mind the onset of the GST regime. It has also notified that any “removal order” placed by sellers after June 23 will be processed only after June 30 and such inventory will be subjected to the GST regime. While other marketplaces are looking to liquidate their stocks before the onset of GST, Amazon India is asking its sellers to move their stocks out. According to seller sources, the company has asked them to take back their inventory from its fulfilment centres. Those sellers who cannot get their removal orders processed by Friday will have their inventories subject to GST regime and not under the current tax dispensation.
An Amazon India spokesperson told FE, “The notification to sellers about removal by June 23 was to give them an opportunity to manage their inventory based on their needs to liquidate or return to vendors/brands. We don’t see any signals of sellers depleting their inventory and our sales continue to be strong. We also don’t see any reduction in fresh inwards.” Amazon’s End of Season sale starts on Friday and it is still not clear how the removal of inventory may impact Amazon India’s upcoming sale. An Amazon source told FE that the firm is planning to stop taking new inwards for a couple of days before taking in fresh stocks that are GST compliant.
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It is not only Amazon, even Flipkart is facing a tight schedule to clear their stocks in its warehouses. The company has extended its deadline for a week to give more time to its vendors to update their GSTN numbers on their portals. Said an online seller, “We are still waiting to receive clear policies about selling on these marketplace post July 1. These marketplaces boast about the size of the seller base, but a huge seller base comes with its own set of problems.”
While Amazon India doubled its seller base to two lakhs from one lakh seller it had last July, Flipkart is serving sellers from more than 2500 pin codes around the country of which almost 50% are sellers from Tier 2 and 3 cities.