Insta
E-Commerce Policy: Paytm Mall To Go Hyperlocal, Begins Shutting Down Warehouses
Paytm Mall. (via Twitter)
Paytm Mall, a subsidiary of One97 Communications has begun shutting down its warehouses aiming to transition to a true marketplace, as per provisions in the FDI policy for e-commerce firms, Economic Times has reported.
The company is hoping that it will help it reduce costs and also bring down the cost and time of deliveries. The sellers on the platform will begin deliveries through local courier services.
“In 2017-18 we were doing a course correction. In this business, one can only be profitable if one becomes a true marketplace and not follow an inventory-based model because the latter comes with the baggage of high costs. Both our partners, eBay and Alibaba are making money,” Rudra Dalmia, senior VP and CFO of Paytm Mall said.
The company, the e-commerce arm of larger Paytm group, is now valued at $3 billion after having raised $165 million from eBay for a 5.5 per cent stake. It has emerged as India’s third largest e-retailer after Flipkart and Amazon.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.
Latest
