WS Retail Stops Selling Products on Flipkart
Reportedly, WS Retail used to contribute to 30-40 percent of Flipkart’s overall sales, but its revenues had declined 67 percent in FY 2017,
Mumbai, August 7: WS Retail, one of the largest contributors to Flipkart’s revenue has pulled out of the e-commerce platform. Reportedly, WS Retail used to contribute to 30-40 percent of Flipkart’s overall sales, but its revenues had declined 67 percent in FY 2017, and the losses increased to Rs 24 crore.
According to a Times of India report, a source has been quoted saying, "As Flipkart reduced its dependency on WS Retail and shifted a large chunk of its sales to other vendors, the company may have found it difficult to sustain operations." WS Retail used to generate a bulk of the revenue before Flipkart turned into a marketplace.
The exact reason is not known, but the source points out that, "The government’s directive that mandated e-commerce companies to not source more than 25 percent of goods from a single seller may have had an adverse impact on the company." In the month of May, Walmart bought 77 percent in Flipkart for $16 billion.
(The above story first appeared on LatestLY on Aug 07, 2018 03:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).