Paytm Culls Most Sellers to Avoid Alibaba’s Problems With Fakes
Paytm E-commerce Pvt., The last to enter the sales line in India, adopts a hard line with suspect merchants to avoid the reputation of Alibaba Group Holding Ltd. as a forgery shelter.
Suddenly, appears Paytm Mall of 85,000 sellers, leaving only 30,000 on its platform. The measure is designed to build trust with customers from the beginning.
“This is a drastic step, but you have to do this to create the right kind of e-commerce platform,” said Amit Sinha, chief operating officer of the newly appointed Indian company, which received $ 200 million in a funding round Led by Alibaba. “We wanted to clean our house and restore Paytm Mall on behalf of trust,” he said by telephone.
Alibaba, the largest e-commerce operator in China, has had trouble waking up, last year saw it return to the list of notorious markets published by the United States Office.
Trade Representative. Paytm forced vendors to provide branded authorization letters, as they include entrenched rivals, the global giant Amazon.com Inc. to start online services Flipkart Pvt.
Amazon has more than 200,000 sellers on its Flipkart platform and about half of that. While both are known to detail the dubious sellers, none of them are close to the Paytm culture.
The three companies vying for a slice of an Indian online retail sector projected by Forrester Research Inc. to rise at a compound annual rate of 31 percent through 2021 to reach 64 billion.
Although not common in China, counterfeiting still poses a problem for India’s e-commerce. Fake Swarovski jewelry, Lacoste shirts, Apple iPhones, Mont Blanc pens and Harman Bluetooth speakers are plentiful, often sold at economical prices.
The country has a legal framework to protect trademarks, but the processes are cumbersome and consumer protection laws do not effectively cover electronic commerce.
“The online business even offers a small seller of the fake national balance,” said Devangshu Dutta, general manager of New Delhi-based retail consultancy Third Eyeight. Any e-commerce business that does not check their merchants for risk of selling counterfeit, stolen or damaged products, he said.
Paytm based in Delhi Noida said it authenticates all its current suppliers, even the smallest. Among those who have launched hundreds of smartphone vendors without permission brands that sell brands with vendors, cameras, laptops, sunglasses and watches.
One of the most commonly falsified, fake perfumes with clients actively leading to brick and mortar to avoid being cheated.