Amazon India’s one of the largest sellers, Cloudtail India has delayed the payments to the brands and suppliers due to the COVID-19 pandemic and the subsequent lockdown that has hit business drastically. Amazon is a minority stakeholder in the Cloudtail India.
“Governmental restrictions given the COVID-19 outbreak and the advisory to sell only essential products have impacted our supply chain and restricted our operations. Therefore, please expect a delay in processing of your payment,” said Cloudtail in an email to one of its large vendors.
According to various executives at large FMCG vendors and companies, Cloudtail has not made payments since 23 March. However, Cloudtail is generally not known for delaying payments.
The Central Government has restricted e-commerce companies to home deliver only the essential goods, restricting them from selling the non-essentials. This has hit many sellers who deal in apparels or electronics like Cloudtail which has now overstocked itself with large inventory of such goods.
Cloudtail is owned by Prione Business Services, which is a joint venture between Infosys founder NR Narayana Murthy’s Catamaran Ventures.