Cloudtail’s FY23 Revenue Plunges 84% To INR 3,093 Cr After It Stops Selling On Amazon
Cloudtail India, once the largest seller on Amazon India, reported an 84% year-on-year plunge in operating revenue in FY23 to INR 2,977.8 crore, as it stopped selling on the platform to fall in line with the regulations.
Cloudtail India’s parent company, Prione Business Services, was renamed Amazon Smart Commerce Solutions last year after Amazon acquired a 76% stake from Infosys founder NR Narayana Murthy’s Catamaran Ventures.
While Cloudtail India has stopped selling on Amazon, it continues to provide certain services on the platform such as seller onboarding, and merchandising and cataloguing of products. With the fall in revenues, Cloudtail’s net loss also contracted to INR 97.8 crore in FY23 from Rs 521.8 crore a year earlier.
Implications of Cloudtail’s exit from Amazon
Cloudtail’s exit from Amazon is a significant development for the Indian e-commerce market. The company was one of the largest sellers on Amazon, and its departure could have a negative impact on the platform’s sales and profitability.
Cloudtail’s exit could also lead to higher prices for consumers, as other sellers may try to raise prices to fill the gap left by Cloudtail. Additionally, Cloudtail’s exit could lead to a reduction in the variety of products available on Amazon.
Impact on Cloudtail India
Cloudtail India’s revenues have plunged significantly after it stopped selling on Amazon. However, the company continues to provide certain services on the platform, which could help to mitigate the impact of the revenue decline.
Cloudtail India is also exploring new opportunities, such as expanding its offline presence and launching its own e-commerce platform. However, it remains to be seen whether these efforts will be successful.
Overall, Cloudtail’s exit from Amazon is a negative development for both the company and the Indian e-commerce market. It remains to be seen how Cloudtail India will adjust to its new reality and whether the company will be able to regain its former prominence.
Here are some additional thoughts on the implications of Cloudtail’s exit from Amazon:
- Cloudtail’s exit could lead to a more competitive landscape for Amazon in India. Other sellers may be more likely to challenge Amazon’s dominance, and this could lead to lower prices and better selection for consumers.
- Cloudtail’s exit could also lead to a more diversified e-commerce market in India. With Cloudtail no longer a major player, other e-commerce platforms such as Flipkart and Walmart-owned Myntra may be able to gain market share.
- Cloudtail’s exit could also have a positive impact on Indian brands. With Cloudtail no longer a major seller, Indian brands may have a better chance of getting their products listed on Amazon and reaching a wider audience.
Overall, Cloudtail’s exit from Amazon is a significant development for the Indian e-commerce market. It remains to be seen what the long-term implications will be, but it is likely that the market will become more competitive and diversified as a result.
