Amazon JV seller Appario has started shipping inventory to new merchants such as Dawntech and Clicktech Retail, as it works towards delisting from the Amazon India platform. This move is part of the JV between Amazon and the Patni Group and intended to avoid any issues arising from the recent regulatory scrutiny of online sellers.
As per reports, Appario’s inventory across electronics and other top segments is being moved to a new cluster of sellers. Dawntech is among them; one of the largest merchants on the Amazon India marketplace, followed by Clicktech Retail. This comes at a time when the American ecommerce giant recently laid off 1,000 employees from its Indian operations due to a sales slowdown as well as cost-cutting measures.
The decision to delist Appario was declared in October 2022 by Amazon and the Patni group in a joint statement announcing that Appario would discontinue as a seller within a year, although the JV was renewed for another three years. This move to assist businesses in increasing their online presence is expected to help Amazon retain the hard-earned reputation of providing the best customer experience possible.
However, experts are still unsure how these changes will impact customer service since the regulatory authority has been taking firm steps to eradicate any favoritism when it comes to online sellers. Rocket Kommerce, Cocoblu Retail, Retail EZ, VRP Telematics are some of the other sellers that have made a name for themselves in recent times.
Frontizo will continue to offer customer care services to Amazon India. Meanwhile, Appario is expected to transition to a B2B unit, facilitating sale of goods between the new set of large sellers and smaller third-party sellers. This will ensure that brands have a smooth relationship with Amazon, although the closure of the company is imminent.
Appario Retail had a turnover of Rs 15,000 crore in FY22 and a profit of 82 crore during the same period. The company is owned by Prione, a joint venture between Amazon and Catamaran Ventures, the investment arm of tech-entrepreneur N R Narayana Murthy.
In conclusion, these changes shape the way ecommerce works in India and will likely have an impact on customer experience, margins for Amazon India and product quality control. It remains to be seen how much control Amazon will have over the newer sellers, and how efficiently the transition from Appario to other vendors goes.