Over 85,000 sellers and their products which failed to meet quality standards have been delisted from the Paytm Mall..Paytm Mall is revamping its seller on-boarding process, as part of this strategy, the company, operated by Paytm Ecommerce, has made it mandatory for sellers to furnish brand authorization letters, failing which they will be delisted.
Paytm Mall’s quality and service audits will require sellers to furbish their registration number, location of the store and GSTIN among others to list their products on the platform. The company expects the criteria to block potential fraudulent merchant signing up and avoid creating a bad customer experience on the platform.
The new strategy has come in within days post the goods and service tax was implemented. The company however claims that this is independent of the implementation of GST. Amit Sinha, the COO of Paytm Mall in a statement to ET said that :
“No sellers were let go owing to non-compliance of GSTIN (Goods and Services Tax Identification Number). However, since the delisting started ahead of the GST mandate, some (sellers) had to leave prior to the GST implementation…We have not revised our margins or service fees. However, our service charge now carries a GST component…Existing sellers have done incremental business on our platform, helping us offer a superior consumer experience,”
Paytm Mall claims that the delisting has not caused any significant impact on the sales volume and selection on the platform so far. Shops will also be provided with Paytm Mall QR Code solution, which consumers will be able to scan to browse their products and place an order instantly. This will enable local shops to tap additional revenue streams from customers who can buy their products online. Paytm Mall is scaling up its partner network by adding 3,000 agents to its existing workforce to dive deeper into tier-II and tier-III cities.