Sellers welcome Snapdeal's steps to fix all outstanding issues
Its plans to reduce the payment cycle to sellers by 40% from 5 days to 3 days has gone well with many sellers and they seem to have buried the hatchet.
Troubled e-commerce company Snapdeal has been on an overdrive to please it sellers.
Its plans to reduce the payment cycle to sellers by 40% from 5 days to 3 days has gone well with many sellers and they seem to have buried the hatchet. Apart from this, sellers also welcomed the move from Snapdeal for its ad platform.
Sanjay Thakur, President of eSellers Suraksha, an association of about 1,000 e-commerce sellers, who just concluded a meeting with Snapdeal on Wednesday told Zeebiz that they had a very successful meeting with Snapdeal.
“They assured us of solving the problems that sellers had. They were very welcoming of suggestions for sellers regarding various problems such as seller payment, GST, among others. There were also many loopholes regarding GST and we wanted to resolve it. This was need so that there will be growth of both sellers and buyers,” Thakur said.
Earlier this month, Snapdeal ran into issues with many sellers on its platform who stopped selling their products one-tailer's website in absence of clearing of pending payments.
The All India Online Vendors Association (AIOVA), which represents 2,000 online sellers, claimed that there is around Rs 300-400 crore of unpaid dues with Snapdeal.
Many sellers had also approached Commerce Minister Nirmala Sitharaman and urged her to intervene to ensure Snapdeal pays their dues.
This was despite Snapdeal trying to woo sellers by reducing the payment cycle of sellers by 40% from 5 days to 3 days. The company, two days ago, announced it will cut advertising rates for sellers by 50% for most categories including fashion and electronics.
Snapdeal expects to earn an annual revenue of over Rs 100 crore from its advertisting platform that assists sellers in improving their brand visibility on e-commerce platform.
Thakur said, “It is a good move that they have done by reducing the ad rates by 50% for sellers. It is an appreciable move and from their plans they are now going for profitability instead of just discounts."
He further added, “The price war will not do anything for the industry and advertising way will be a good way to attract customers and sellers. Snapdeal's ad platform has always given mileage to seller volumes, which is something we have seen in the part.”
When asked about the new discounted ad rates offered by Snapdeal on its portal he said “it is as low as Rs 500, depending on the quality (type of ads) and quantity of ads that the seller wants.”
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
Power of Compounding: How many years it will take to reach Rs 2 crore corpus if your monthly SIP is Rs 3,000, Rs 4,000, or Rs 5,000
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
05:01 PM IST