Paytm Mall delists 85,000+ sellers to prevent fraudulent retail

Rebecca Menezes | Sep 10, 2020

Paytm upgraded its ecommerce platform to Paytm Mall this year. And, after introducing GST changes to this platform, the etailer is ready to make more. Paytm Mall is revising its seller on-boarding process to ensure it maintains only true sellers on its platform. So, to separate the wheat from the chaff, the ecommerce platform is enforcing quality standards more stringently than before.

Mandatory rules to sell on Paytm Mall

Paytm Mall has made it mandatory for sellers to provide brand authorization letters in case they sell branded goods that are not their own. This has led to the etailer delisting more than 85,000 online sellers and their products that are below quality standards.

The massive seller delisting has not significantly affected sales volumes and selection on the marketplace.

“Existing sellers have done incremental business on our platform, helping us offer a superior consumer experience,” Paytm Mall’s COO, Amit Sinha mentioned.

How can you assure you meet requirements?

    The quality and service audits by Paytm Mall require vendors to submit their:

    • Registration number
    • Store location
    • GSTIN

    This process is expected to prevent fraudulent sellers from selling on the platform and hampering customer experience on the platform.

    As this move come directly after the implementation of GST, which has caused an uproar on certain platforms, one can’t help but wonder if the new tax regime had something to do with its seller delisting.

    In regard to this doubt, Sinha said, “No sellers were let go owing to non-compliance of GSTIN (Goods and Services Tax Identification Number). However, since the delisting started ahead of the GST mandate, some (sellers) had to leave prior to the GST implementation.”

    He also pointed out that, “We (Paytm Mall) have not revised our margins or service fees. However, our service charge now carries a GST component.”

    But all’s not bad, right?


    Paytm will be providing shops on its platform Paytm Mall QR Code solution. This will allow customers to scan the code and view seller products and instantly place orders. Local shops will be able to make more revenue from customers who shop online.

    Brands and shopkeepers will also be allowed to set policies regarding their product refunds, exchanges and returns on the Paytm Mall platform.


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    Rebecca Menezes

    Rebecca Menezes


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