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Snapdeal Vendors wait for their payments amidst company’s funding crunch

 

Image: marketingland.com

 

By Anirudh Saligrama

3journoanirudh

 

05 April 2017: While the online marketplace Snapdeal is finding ways to raise funds, the vendors are still waiting for their payment from Snapdeal.
Live Mint report  states that top Snapdeal investors - SoftBank Group Corp., Kalaari Capital and Nexus Venture Partners are taking initial steps to sell the online marketplace to its rivals like Flipkart and Paytm.

Further, Business Standard reported that the board of directors, including Kunal Bahl and Rohit Bansal, did not agree to the terms of the deal.
Three vendors of Snapdeal spoke to NewsNet based on the condition of anonymity.

One of the above mentioned vendor said, “According to Snapdeal Policy, vendors are supposed to receive their payment within two weeks. However, in recent times we have to wait for more than a month to receive the payment. This is causing huge inconvenience when we have to re-stock our inventory.”

“The company does not have proper professional and ethical policies for vendors at first place. I had stopped selling on Snapdeal and moved on to other e-commerce portal to sell my products. I started selling on Snapdeal again after 6-7 months. But that is a decision I regret. Most of the time, the accountants behave very unprofessionally when I call them to ask the status of the payment. I have already posted on all consumer complaint portals and yet the issue has not been resolved,” said the second vendor of the three cited above.

The third vendor who also spoke on the condition of anonymity said, “At first, 80% of the goods which are returned back to vendor are the ones that the vendor actually shipped and for which Snapdeal does not pay the vendor for the product they shipped. Secondly, Vendors have to personally walk to Snapdeal Warehouse/Distribution Centre to get back their products which were returned by customers. Now we have to wait even longer for the payment by the company.”

A report published by Times of India states that All India Online Vendors Association (AIOVA) claims to have more than 2000 sellers on its platform and is constantly seeking assistance from commerce minister - Nirmala Sitharaman to look into the concern of unpaid dues by Snapdeal to its vendors. Further, the report stated that the commerce ministry has forwarded complaints filed by AIOVA to Reserve Bank of India(RBI) regarding the online marketplaces violating the FDI policies.

 

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