{"id":1412,"date":"2016-12-21T12:13:00","date_gmt":"2016-12-21T12:13:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=1412"},"modified":"2022-09-13T12:03:04","modified_gmt":"2022-09-13T12:03:04","slug":"amazon-on-a-high-cloudtail-surpasses-shoppers-stops-revenue-sales-up-300","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/amazon-on-a-high-cloudtail-surpasses-shoppers-stops-revenue-sales-up-300\/","title":{"rendered":"Amazon on a high! Cloudtail surpasses Shoppers Stop&#8217;s revenue; sales up 300%"},"content":{"rendered":"\n<p> <i>Sagar Malviya &amp; Shambhavi Anand, The Economic Times<br>\nMumbai\/New Delhi, 21 December 2016<\/i><\/p>\n<div class=\"row\">\n<div class=\"col-sm-4\">\n<p class=\"mt-3\"><img decoding=\"async\" class=\"img-fluid d-block lazyload\" data-src=\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2022\/08\/amazon-package-prime.jpg\"  src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\"><\/p><\/div>\n<div class=\"col-sm-8\"><p class=\"mt-3\">Amazon&#8217;s largest seller Cloudtail surpassed the\ncountry&#8217;s largest department chain Shoppers Stop by revenues which grew\nfourfold during the year to March 2016, highlighting the growing\npopularity of online buying as well as of Jeff Bezos&#8217; company in India.\nThis has also posed an unusual problem for the world&#8217;s largest online\nretailer which has to slow down sales of its Indian joint venture firm\nto comply with government norms. <\/p>\n<p class=\"mt-3\">\nCloudtail, a JV between Amazon Asia and Infosys founder Narayan\nMurthy&#8217;s personal investment vehicle Catamaran, posted over 300% jump\nin revenues to Rs 4,591 crore. This is slightly higher than the\nconsolidated revenue of Shoppers Stop at Rs 4,582 crore and almost\ntwice that of the Tata-owned Trent that logged sales of Rs 2,397 crore\nduring the same period. A year ago, Cloudtail had clocked sales of Rs\n1,145 crore. Its net loss too has narrowed to Rs 30 crore from Rs 32\ncrore. <\/p><\/div><\/div>\n<div class=\"row\">\n<p>\n<span style=\"font-weight: bold;\">&#8220;On paper,\nCloudtail is just a merchant on Amazon but essentially the kind of\ngrowth it has seen would not have happened without Amazon&#8217;s support,&#8221;\nsaid Devangshu Dutta, chief executive, Third Eyesight, a consultancy\nfirm. <\/span><\/p>\n<p>\nBut for all its success, Amazon is scrambling to reduce its dependence\non Cloudtail which as of now accounts for over a third of the sales\nthat take place on its shopping platform in India. That&#8217;s because\ngovernment regulations announced earlier this year do not permit a\nsingle vendor to account for more than 25% of sales of an online\nmarketplace where foreign money has been invested. <\/p>\n<p>\nAmazon, Flipkart and other similar marketplaces have to comply with\nthis guideline by March 31, 2017. <\/p>\n<p>\nOver the last few months, Cloudtail has almost stopped selling mobile\nphones. Smartphones constituted the largest category of ecommerce sales\nand formed a big part of Cloudtail&#8217;s overall sales in previous years.\nBut it continues to sell Amazon private labels in India. <\/p>\n<\/div>\n<div class=\"row\">\n<div class=\"col-sm-8\">\n<p class=\"mt-3\">An Amazon spokesperson said the company has put a process in place to\nassess the performance of the sellers on the platform and update\nsellers if they are close to or about to exceed the 25% threshold.&nbsp;<\/p>\n<p class=\"mt-3\">\n&#8220;Cloudtail is one of the 140,000 sellers that sell on the Amazon.in\nmarketplace. Our marketplace has grown tremendously in the last three\nyears, and sellers have seen growth in business. Our continued belief is that a robust marketplace cannot be built on a single seller focused strategy. We have a robust platform which is open\nto all,&#8221; said the spokesperson. &#8220;We have and we will continue to\noperate within the parameters of the laws and policies of India as we\ndo in each country we operate in.&#8221;<\/p>\n<p>Amazon India&#8217;s largest rival Flipkart was also heavily dependent on a key vendor, WS Retail, for over three-fourths of its sales until two years ago. But it has gradually reduced its dependence on WS Retail and\nclaims it has moved towards a pure marketplace model which can allow\nover one lakh sellers to compete on the portal within nearly 80\ncategories. <\/p>\n<p>\nIndia is one of the fastest growing markets for the US etailer and its\nfounder Bezos has pledged to invest $2 billion in local operations.\nLast month, it invested Rs 2,100 crore in its main India unit, taking\ntotal capital invested in Amazon Seller Services to over Rs 7,000 crore\nin the last 12 months. <\/p>\n<p>\nThe country&#8217;s ecommerce market is expected to grow to $103 billion by\n2019-20 from $26 billion now, according to Goldman Sachs. <\/p>\n<\/div>\n<div class=\"col-sm-4\">\n<p class=\"mt-3\"><img decoding=\"async\" class=\"img-fluid d-block lazyload\" data-src=\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2022\/08\/amazon-bigger-cart.png\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\"><\/p><\/div><\/div>\n<p>\nAmazon expects India to overtake Japan, Germany and the UK to become\nits largest overseas market, besides becoming the quickest to reach $10\nbillion in gross merchandise value in the company&#8217;s history. <\/p>\n<p>\nIt&#8217;s showing in Amazon&#8217;s performance already. Amazon Seller Services\nhas more than doubled its revenues in the year ended March. It earns\nits revenues through commissions, advertisements and shipping fees that\nthey charge to sellers. <\/p>\n<p>\n&#8220;Being a third-party market has caused a lot of invention on our side.\nThe team in India has been very creative on whenever they find a\nroadblock or something that has not existed in another country, they\ncreate it themselves, whether from delivery stations to working with\nsmall merchants,&#8221; Brian Olsavsky, CFO at Amazon-.com, told investors in\nOctober this year. <span style=\"font-weight: bold;\"><\/span><span style=\"font-style: italic;\"><\/span><br style=\"font-weight: bold;\">\n<\/p>\n<p><i>(Published\nin <a href=\"http:\/\/economictimes.indiatimes.com\/industry\/services\/retail\/amazon-on-a-high-cloudtail-surpasses-shoppers-stops-revenue-sales-up-300\/articleshow\/56092204.cms\" target=\"_blank\" rel=\"noopener\">The Economic Times<\/a>)<\/i>\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sagar Malviya &amp; Shambhavi Anand, The Economic Times Mumbai\/New Delhi, 21 December 2016 Amazon&#8217;s largest seller Cloudtail surpassed the country&#8217;s largest department chain Shoppers Stop by revenues which grew fourfold during the year to March 2016, highlighting the growing popularity of online buying as well as of Jeff Bezos&#8217; company in India. This has also [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-1412","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Amazon on a high! Cloudtail surpasses Shoppers Stop&#039;s revenue; sales up 300% - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/amazon-on-a-high-cloudtail-surpasses-shoppers-stops-revenue-sales-up-300\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amazon on a high! Cloudtail surpasses Shoppers Stop&#039;s revenue; sales up 300% - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"Sagar Malviya &amp; Shambhavi Anand, The Economic Times Mumbai\/New Delhi, 21 December 2016 Amazon&#8217;s largest seller Cloudtail surpassed the country&#8217;s largest department chain Shoppers Stop by revenues which grew fourfold during the year to March 2016, highlighting the growing popularity of online buying as well as of Jeff Bezos&#8217; company in India. 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