Amazon.com Inc has restored thousands of suspended product listings in India as top sellers like Cloudtail, Appario and Amazon Retail returned on the platform on Thursday, February 07, 2019. Restructuring of the product listings has come after selling its stake in holding companies Cloudtail and Appario Retail. This has been modified to meet the updated standard stringent new e-commerce regulations.
Who sells to whom
As per sources, a company named Prione Business Services Pvt, run by billionaire Narayana Murthy’s Catamaran Advisors LLP has bought, 25 per cent of its shares, from the Amazon entity
Now, Prione owns 76 per cent of the venture. Earlier, it holds 51 per cent. On the other side, A non-Indian arm of the US retailer’s called Amazon Asia-Pacific Resources Ltd owns the remaining 24 per cent.
Condition before signing deal
The deal has been signed by the Amazon to restore a big chunk of frozen item listings since February 1 when the e-commerce stringent regulations left the Amazon’s and Walmart Inc.’s plans into disorder in the world’s fastest-growing online retail arena.
The conditions for Amazon and Walmart’s Flipkart became even more tough to survive in the e-commerce market, when Narendra Modi’s government, asked to ban them for cutting exclusive arrangements with sellers, offering big discounts or holding any business interest, in online merchants on their websites.
New policy led to New problems for Amazon and Flipkart
A series of restrictions were imposed on both Amazon India and Flipkart’s operation such as restricting discounts, no ownership in sellers on the marketplace platform and ban on the exclusive product launches.
All this force the companies to restructure their operations.