One day when the Supreme Court of India ruled that Amazon and Walmart would face a flip cart. The CCI ordered a no-confidence motion against him in India. (Competition Commission of India, the country’s antitrust watchdog), it was also revealed that Amazon.com and its largest seller in India, CloudTail, have decided to separate.
The latter has been the largest seller on Amazon in India. The American company was reportedly given priority.Which is a violation of local laws. Local brick and mortar retailers have not lost their love for CloudTail and its ally Amazon.
Interestingly, Amazon and Katamaran (who owns and controls CloudTail) did not give a reason for not renewing their agreement, which expires on May 19, 2022.
CloudTail’s actions were controversial.
“The two partners announced today that they have mutually agreed not to continue their joint venture until the end of their current term,” the two companies said in a joint statement.
The press release claims that JV has enabled more than 300,000 sellers and entrepreneurs to go online and enabled 4 million merchants with digital payment capabilities, enabling SMBs and merchants across the country. I provide access to millions of users.
But if you deviate from pleasant press releases and talk to local traders, the story takes a different turn. The CloudTail operation has been controversial. Several merchant organizations have accused Amazon of favoring CloudTail over other sellers.
CloudTail has been a source of pain for local businessmen since 2014 when it was formed after Amazon entered into a joint venture with a company set up by India’s leading tech czar NR Narayana Murthy. CloudTel launched its products on Amazon.in in August 2014.
However, Amazon maintained that CloudTail is a free seller that offers goods on its e-commerce platform. But the popular view was that both companies were in gloves and operating in a manner that violated the country’s foreign investment laws.
A similar situation exists with another seller on Amazon, named Apario.
Amazon is also said to be in talks with Apario’s parents to decide whether to continue their alliance.
In general, e-commerce companies are worried because many of their deals are now under scrutiny.