Published
Jun 6, 2018
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WS Retail revenue plunges 66% after e-commerce directive

Published
Jun 6, 2018

The largest seller on Flipkart’s e-commerce platform, WS Retail, reported a 66% drop in overall revenue for the 2016/ 2017 financial year (FY) following a directive by the Union Government that prevented any one seller from providing over 25 percent of a marketplace’s overall income.


WS Retail reported a 66 percent drop in overall revenue for FY17 - Flipkart- Facebook


The business reported a revenue total of Rs 4,628.1 crore ($695.7 million) in FY17, ended in March 2017, which was down from a total of Rs 13,921.2 crore in FY16, according to financial data sourced by the business information platform Tofler.

During FY16, WS Retail was contributing around 35 to 40 percent of Flipkart’s overall income. However, a government foreign direct investment (FDI) law was passed that capped the income any one seller could contribute to a multi-brand online marketplace at 25 percent. This forced Flipkart to rethink its model and meant that WS Retail’s income had to be reduced. Flipkart did this by working with other sellers to increase their revenue such as Health & Happiness and Tech Connect.

WS Retail’s FY17 results also showed a net loss of Rs 24.3 crore compared to a profit of Rs 5.2 crore in FY16. Expenses dropped by 66 percent in FY17 to Rs 4,643.2 crore from Rs 13,912.7 in FY16, as did employee costs, by 81 percent from Rs 60.6 crore in FY16 to Rs 11.3 crore in FY17.

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