Paytm is known to run after big numbers – millions of transactions, thousands of sellers, thousands of transactions per second – and what not. In a first, the company is willing to let go of as many as 85,000 sellers from its marketplace.
In a tweet, the company’s founder and CEO Vijay Shekhar said, “We prefer small sellers partners.” The company will only on board brand authorized and trusted sellers from now on. The idea is simple: build trust amongst sellers and buyers.
Paytm isn’t new to e-commerce horror stories. Both sellers and buyers have reported issues that have eroded trust.
With lesser, but more trustworthy, sellers Paytm is looking at building a stronger online marketplace in India to compete with the likes of Amazon and Flipkart. Paytm has separated its online marketplace and now calls it Paytm Mall since February this year.
Sellers on Paytm Mall will now need to prove their trustworthiness. They will need to submit letters from brands authorizing that they can seller particular products. Paytm Mall will also conduct strict quality checks apart from physically verifying a seller’s offline presence.
The race towards getting the maximum number of sellers at online marketplaces is clearly over. The focus, now and over the next five years, will be on building a stronger and more reliable online marketplace. Customers prefer to buy from a reliable online marketplace irrespective of the discounted pricing.
In March, Paytm Mall had raised $200 million from Alibaba and SAIF partners. Amit Sinha was appointed as the COO (chief operating officer) of Paytm Mall.
Another interesting nugget of information that may have serious impact on buyers is the fact that Paytm Mall will let brands and sellers determine return policies. These include all returns, exchanges and the refunds for purchases made on Paytm Mall.
This means that a certain brand may have an entirely different return policy as compared to other brands. This could lead to a lot of confusion.
Online marketplaces in India currently offer a liberal return policy on most products. Since consumers started abusing the policy, online marketplaces have limited return window periods to 10 days for high value categories like electronics.