With the acquisition of Snapdeal by Flipkart yet to fructify, the online retailer is understood to be returning stocks to vendors.
With the acquisition of Snapdeal by Flipkart yet to fructify, the online retailer is understood to be returning stocks to vendors. Meanwhile, other e-retailers are offering discounts in a bid to clear stocks ahead of the roll out of the GST slated for July 1, barely two weeks away.Two sources in Snapdeal told FE the e-commerce company has returned 60-70% of the goods from fulfilment centres. Only those goods and products expected to find buyers quickly have been retained. “We are only stocking products for which sellers have special offers,” they said. Other marketplaces like Amazon, Flipkart and Paytm are having sales ahead of the GST roll-out in an attempt to liquidating their stocks.
Snapdeal while responding to a query said, “The replacement of out-of-season stocks with new merchandize is a regular practice. At regular intervals, the sellers are advised to take back any non-moving or out-of-season stocks and replenish their stocks with items in demand as per market analytics.” Snapdeal is asking sellers to pack and dispatch goods or assigning third parties to pick up goods from sellers and process them in a centralised warehouse, from where courier companies deliver them to customers.
Snapdeal, run by Jasper Infotech Private Limited, posted a loss of Rs 3,316 crore in FY16, an increase of 150% compared to the loss of Rs 1,328 crore it incurred in FY15. In February it was reported that the company had cash reserves of around Rs 1,100 crore. But since then, the reserves have been rapidly dwindling. Snapdeal had recently raised Rs 113 crore from Nexus Ventures and co-founders Kunal Bahl and Rohit Bansal, to keep the company afloat.
Sameer Ranjan Bakshi