With the implementation of GST expected by the start of 1st July, online marketplaces are trying to get rid of stocks to avoid complications when the new tax comes into play. Flipkart and Amazon brought festive cheer early this year with discounts up to 80% to help sellers clear out their inventory.
Snapdeal, on the other hand, is returning stocks from its warehouses to sellers, a move Amazon and Flipkart tried before hosting sales to liquidate stocks. The etailer likely to merge with Flipkart, has already returned 60-70% of goods from its fulfilment centres to sellers, said two persons with knowledge about the same. The remaining are goods are expected to be ones in demand and have high chances of being sold off soon.
The sources said, “We are only stocking products for which sellers have special offers.”
Snapdeal confirms product returns
When asked about its process of returning inventory to sellers, Snapdeal commented,
“The replacement of out-of-season stocks with new merchandize is a regular practice. At regular intervals, the sellers are advised to take back any non-moving or out-of-season stocks and replenish their stocks with items in demand as per market analytics.”
As preparation for GST the etailer is offering online sellers GST training and educating them on how it will affect their selling practices on the platform. But, Snapdeal’s not the only one, Flipkart has GST genie to clear seller confusion about the goods and services tax. And, Amazon has its ‘A-Z GST Guide’ to inform merchants about the tax.