Cloudtail, which is Amazon India’s largest seller, is going to stop selling mobile phones, specifically smartphones on the e-commerce platform in compliance with foreign investment rules that prevent a single seller from accounting for more than 25% of a marketplace’s total sales. Cloudtail is a joint venture between Amazon India and NR Narayana Murthy’s Catamaran Ventures.
Smartphones make the largest category on platforms such as Amazon. It also has a high value and high volume segment, contributing significantly towards the overall sales and revenues of Cloudtail. The company will now focus on segments like FMCG, lifestyle products and consumer electronics, which comparatively have a much lower unit value. In this way, Cloudtail will be able to comply with the cap suggested in the FDI norms.