Paytm has always been against the use of 3rd party panels by online sellers especially those provided by its competition. Remember when the online payment platform and marketplace took its rival’s acquisition Unicommerce to court?
Since that trial in April, Paytm has not grown fond of 3rd party panels. The ecommerce company requested its online sellers not to use other panels for processing their orders from Paytm.
Why must sellers use the Paytm Seller Panel only?
Paytm says it is essential for all its online sellers to use the Paytm Seller Panel. That’s because critical information like the Route Codes are omitted when packaging slips are printed from 3rd party panels.
What are these Route Codes and why are they important?
Route codes are mostly three letter codes. However, the length of these codes may vary depending on the courier partner used. This code must be mentioned on the product packaging slips. It enables easier and efficient processing on the courier partner’s end. The route code is auto-scanned and sorted for shipment according to the delivery it depicts.
Missing route codes affect product delivery. This, in turn, causes delays and even product returns.
Paytm also mentioned that these route codes are prepared by the courier partner and there may be certain cases where they do not appear on the packaging slips.
Discouraging 3rd party panels
“There are a few reasons why the marketplace would prefer if sellers used the Paytm panel only for processing orders. If the marketplace wants to:
- Test a new panel feature
- Understand the customer’s experience with the panel
- Locate areas that need improvement
It is a bit difficult to so when sellers are not using the marketplace panel.”
But the fact that 3rd party panels make it easy to sell on multiple marketplaces outweighs these factors for some online sellers. Browntape also specified that the missing route code issues has been solved at their end and sellers have no need to worry.
Breaking away from One97?
Within the next three months Paytm is expected to separate its marketplace business from its ewallet business, stated Paytm founder, Vijay Shekhar Sharma. A separate firm for online retail and services will be set up once the founder identifies investors for the marketplace business. The end goal is to form two individual entities one a marketplace and the other a payment and banking company.
This will be a demerger where Paytm’s marketplace will not be a part of One97 any longer. One97 owns Paytm and the parent firm’s shareholders will have shares in the new company, but once again the new company will be a separate entity, revealed a source familiar with the matter.
The marketplace contributes to abound 30% of Paytm’s business. The Reserve bank wanted to guarantee all funds allocated to the marketplace are used only there and not elsewhere the source said. Once the demerger is complete, One97 will concentrate on recharge payments, utility bill payments and developing an offline-to-online payment and banking system of business.