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Amazon interrupt Platinum Seller Program, till clarification on GST

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Online marketplace Amazon India has currently interrupted its exclusive, invite-only Platinum Seller Program (PSP). It has not renewed the contracts of the top sellers until there is further clarity on Goods and Service Tax (GST) regulations for sellers across categories, according to ET.

Now Amazon India has only one Platinum seller currently i.e Cloudtail India, top seller on the portal, which is a joint venture between Amazon.com and InfosysBSE -0.53 % co-founder Narayana Murthy’s Catamaran Ventures.

Currently, Amazon India had suspended the renewal process of the one-year contracts.

PSP is a growth-oriented programme, where sellers are asked to meet certain metrics and sales targets. It provides benefits in terms of lower marketplace fee and lowered logistics costs.

This program gained importance last year after the Department of Industrial Policy and Promotion (DIPP) said sales by a single seller on e-commerce marketplaces will be capped at 25% of the overall sales by the marketplace.

Till then, Cloudtail accounted for a large majority of Amazon India’s sales.But over the next few months, new sellers emerged in high-gross-sales categories like smartphones, helping Amazon India bring down the share of Cloudtail on the platform.

According to a platinum seller who spoke to ET,

“The company has conveyed to us that the renewals are on hold due to clarity on GST. There will be a single tax under GST, the benefits of which will be passed on to the merchant and to the buyer in terms of pricing. Hence, Amazon is trying to understand whether there is a need for differential standards. Even the sellers are confused and do not know what margins to quote as the impact of GST is still not clear.”

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