E-commerce Policy: Amazon seller Cloudtail returns with limited products


Amazon’s premium seller Cloudtail makes a grand comeback by listing select products on the marketplace first time after the rollout of the e-commerce policy. According to sources, the company had restructured the total ownership of the company in such a way that Amazon is no longer part of Cloudtail. We can see products manufactured by brands such as Solimo back on Amazon. It took only 7 days for the Amazon to reinvent the wheel after the introduction of the new e-commerce policy.

The reports indicate that Catamaran Ventures founded by NR Narayana Murthy has increased the stake in Prione Business Services to 76 percent instead of 51 percent. This has reduced the stake of Amazon Asia to 24 percent instead of 49 percent. As of this writing, Cloudtail has teased to be Amazon group company and is now eligible to sell on the marketplace as before.

The interesting point to note is that Cloudtail is also planning to list products on other marketplaces such as Snapdeal, Shopclues including the launch of their own e-commerce portal. It remains to be seen as to whether the company will list on Flipkart but it’s highly unlikely.

Commenting on the development, Amazon India spokesperson disclosed to us that the company is committed and will abide by the rule of the land. The company hs no equity participation with any seller. Moreover, the e-commerce giant also revealed to us that sellers will not buy 25 percent of the total inventory from their wholesale business.

Amazon is also planning to reshuffle Appario, in the same way, to enable them to continue on its marketplace. Currently, Appario owned by the Patni group holds a 51 percent equity state. Amazon Asia Pacific Holdings holds 48 percent stake and hence the won’t be able to perform any business on the marketplace.

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After the restructuring is finished, Amazon will hold 24 percent stakes in both Cloudtail and Appario and will not appoint directors on their board. It remains to be seen as to how the Government will react to the reshuffle done by Amazon. It is critical for the Amazon to comply with the rules of the law. However, the reduction in the stakes will not be sufficient for the company to sell products sold by Cloudtail.

Anand Narayanaswamy is the editor-in-chief of Netans. He was recognized as a Microsoft Most Valuable Professional (MVP) for 9 years (2002 to 2011) and currently part of MVP Reconnect program. He is also part of the prestigious ASPInsider program. Anand has published several articles and reviews related to various software and hardware products for various software and technology related websites. He is also active on social media and also participates as an Influencer for various brands. Anand can be reached at admin@netans.com

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