Flipkart introduces changes to seller panel

Indian ecommerce leader Flipkart has been in the news a lot these days. Last week we saw more than a mere chink in the etailer’s armor and its competitor Amazon going in for the kill. But Flipkart has no intention to go down quietly. The marketplace is ready to take on anyone blocking its way to online retail greatness. Flipkart is currently fighting the unjust entry tax system most online states have imposed on ecommerce goods.

The ecommerce giant is cutting down WS Retail’s share on its platform to enhance the online seller experience. It also has plans to cut down its reckless spending. The change revolution is in effect at Flipkart, so much so that they’ve even changed technical aspects like their self-ship panel.

Here’s the latest update on the panel changes:

What have they changed?

Change I – Tracking id validation

The new change is related to the validation of the tracking id field. When incorrect tracking id details are entered, that particular order will stay in a new tab as the dispatch action fails. Also an error notification will flash to alert you about the mistake made.

Invalid tracking id

When updating dispatch information for an order you may get an error due to the entry of an invalid tacking id. In this case, the marketplace says you need to check the tracking id you’ve entered.

The tracking id must:

• Have a minimum of six characters
• Start and end with and alphanumeric character
• Have only alphanumeric characters “-“ or “_”. NOT values like Null, Nil, Na, Selfship, etc. (Characters like #, /, etc. are also not allowed)

Change II – Visibility of customer delivery reattempt

The dispatched tab on the self-ship order dashboard now allows sellers to see all the orders that need to be redelivered. It will clearly show the orders that have been updated for customer delivery reattempts.

How will you know if the updated delivery attempt is reflecting on the portal?

• Locate the updated order under the dispatch tab.
• You will see the word “reattempt” reflecting on the order card. To see on which dates the reattempts were updated click on “reattempt”.

Change III – Edit Shipment

Under the dispatch tab you will now be able to edit details like the vendor name, tracking id and expected date. All it takes is one click of the new “Edit Shipment” button. However, sellers please NOTE this functionality is unavailable when orders are being auto tracked with an integrated logistics partner.

The orders that cannot be edited will appear grey. Flipkart does not allow sellers to manually make changes when orders are tracked by logistics partners.

How to update a different logistics partner/ tracking id?

• Use the order id or item id to locate the order you need to edit
• Select the edit shipment option
• Add new dispatch details like – tracking id, logistics partner name and expected delivery date)
• Click confirm to save your changes

Using own logistics to deliver products

If you deliver your products to customers via your own logistics arrangements and have no tracking id provided, use the UI to take the dispatch action on such orders. Select the “Don’t have tracking id” option next to Tracking id field. (You will find it under the dispatch section.) Select the other relevant details and click the dispatch button to confirm.

Changing logistic partner detail when order card appears grey (when functionality is unavailable)

You are not allowed to do any kind of manual actions if you choose a logistics partner during dispatch action and Flipkart has already started tracking it. However, you can avoid such a situation. The dispatch action on the dashboard should be done only when an order is handed over to the logistics partner.

Change IV – Visibility of installation service reattempt

Flipkart also allows you to check out orders where installation service reattempted. You will gain visibility of these updates under the “Pending Service” tab on the Self-Ship orders dashboard.

How to check if the updated service attempt is reflecting on the portal?

• Look for the order under the pending service tab
• You will see the word “Service Reattempt” reflecting on the order card. To see on which dates service reattempts for the order were updated click on “reattempt”.

Global brands find easier entry into Indian market through ecommerce

Quite similar to the Silk Route in the 2^nd millennium BC, which traders from Europe used to enter China and other countries, the online route is making a revolution of its own. Leading foreign brands are entering the Indian commercial scene by establishing a presence in online marketplaces.

Indian marketplaces like Myntra and Amazon are tying up with fashion brands like Drunknmunky, Brooks Brothers, Mizuno, Jeep, Rockland, and Bjorn Borg among others to enable them to sell on their platforms. Thanks to a legal angle, foreign brands need not have a physical presence in India in order to sell online.

More phoren maal at desi marketplaces

Mayank Shivam, category leader at Amazon fashion, cites the boom in sale of foreign brands. He says,

“Our men’s apparel selection has grown over 450% since the launch with over 200% year-on-year growth in sales, and western apparel selection for women has seen over 800% growth in sales over the past one year. Customers can now shop for brands such as Superdry, Gas, Quicksilver, Gant, Calvin Klein, Roxy, Fossil, Steve Madden, The Hub, British Knights, CR7, Desigual, and Dune among others across categories.”

Likewise, foreign brands are making a beeline for Myntra too, says Gunjan Soni, chief marketing officer of Myntra Fashion. He explains how it is much more comfortable for a foreign brand to make an online presence felt in India,

“We have been getting calls from several brands. Lack of quality infrastructure and high real estate costs can be limiting for brands. Even the brands that have a physical presence here realise that they are only restricted to a few cities and online platforms can provide them a wider reach.”

Experts also endorse this view. Paresh Parekh, partner at Ernst and Young, says,

“It’s a win-win situation for all and brands are using this route to test the market.”

Hoping that this win-win works well for the Indian online commerce climate.

IN THE NE

Koovs India flush with funds, raises Rs 212 Crore

While a few ecommerce players are facing fund crunch, fashion etailer Koovs is rolling in money. Last month, the company raised Rs. 186 crore ($28 million). It has now raised another Rs 212 crore (£21.9 million or $32 million).

Secured $32 million by issuing shares

Koovs plc, the parent company of Koovs India has raised this money by issuing 87.6 million new shares priced at 25 pence/share (approximately Rs. 25). Existing investors Waheed Alli, the Nahata family and Michiniko are going to put in the maximum share. But new investors too will join in such as private investment firm Ruffer LLP.

Koovs’ CEO Mary Turner explained why investing in India is a wise move,

“India’s online fashion market is expected to increase five-fold by 2020, to £1.5 billion, and we have a clear strategy to accelerate Koovs’ growth in this market.”

New FDI directive helped

The government’s decision to ease out FDI norms for ecommerce marketplaces helped Koovs to generate funds. But the company will have to be extra careful about the 25% sales cap. As of now, Koovs India is the biggest supplier on Koovs.com.

Game Plan

The parent company Koovs plc plans to utilize the fresh funds for:

• Buy the remaining 38.6% stake in Koovs Marketing aka Koovs India to complete 100% ownership

• Launching a multi-channel marketing campaign

• Fulfill working capital requirement

If things continue to go well for Koovs then it may breakeven by 2019 as per its plan, thanks to the millions of funds being poured into the company. The fashion etailer’s last brand awareness campaign clicked with the buyers and its sales multiplied by three times.

With Jabong struggling as of now and Myntra as the sole competitor (in terms of pure online fashion players), will Koovs manage to scale up? Will the $32 million help the etailer to stay relevant and ahead of the competition?

Is Amazon not taking action against brand infringement?

Counterfeit market is a flourishing business. Right from designer wear replicas to first-copy luxury watches, there are people who brazenly copy & sell unauthorized/fake products.

The advent of ecommerce made it even easier for replicas to travel across the world somewhat freely. And marketplaces are turning out to be a safe haven for phony sellers. The result: Growing cases of brand infringement.

What qualifies as brand infringement?

Let’s understand some of the things that falls under brand infringement:

• Selling without brand authorization letter or obtaining distribution rights

• Counterfeit products where sellers copy brand’s designs

• Trademark infringement where a seller uses an identical or similar trademark

Online marketplaces, a safe passage

Be it Flipkart, Amazon or Snapdeal, each online marketplace has strict ‘no brand infringement’ policy in place. They also insist that only original products are available on their platform.

Yet we have heard about cases such as: Nalli silks accused Snapdeal of trademark infringement, furniture brand Housefull took etailer Mebelkart to court, Flipkart filed case against a discount listing site for copyright and trademark infringement, owner of Laxmipati sarees filed a case against Flipkart & Amazon and many more.

The trouble starts when marketplaces refuse to take action

We get it that it can be extremely hard to keep track of thousands of sellers & products and spot copyright issues. But if brands contact marketplaces and inform them, then why an ecommerce player doesn’t take any action?

An Amazon seller ‘Mithas by Suneeta Gupta’ wrote on its Seller Central forum,

“We have developed our own brand for which we have also purchased Trademarks in two separate classes. Of late we have noticed that a few sellers are trying to sell our listings under their accounts…However, since we have not given permission to any of these sellers and none of them own the trademark of our brand name, they are simply selling our products illegally on Amazon.in. We have sent our complaint to Amazon along with all the relevant documents and Amazon has given to us in writing that they will not be removing these sellers from our listings.”

The seller added,

“Other marketplaces have been quick and fair in solving such problems of Brand Infringement but Amazon is not taking any action at all.”

In the above case, the seller did all the right things:

• Got trademark registration done as recommended by legal experts
• Haven’t given the permission to anyone to sell any of their products
• Informed Amazon about the issue by registering a compliant
• Furnished the documents required to prove trademark ownership

In spite of taking the necessary steps, why Amazon didn’t remove the fraud sellers?

The support team’s reply to Mithas’ complaint was,

“Please note that every trademark infringement complaint is different and the actions taken are dependent on multiple factors. We encourage sellers to report for a brand infringement issue when they have a valid trademark registration. Amazon only considers infringement reports only from brands which are having the TradeMark status as “Registered”.”

Private labels at risk   

It highlights the apathy towards online sellers. Few merchants are misusing the online retail platform and marketplaces are enabling them. And who is paying for it? Legal brand owners, who have invested months or years of blood, sweat and creativity in creating their product line and building a reputation.

Take for instance fashion designer Masaba Gupta who decided to launch an affordable clothing line in 2014 in a bid to counter the counterfeiters. If famous designers have to think of an alternate way to tackle fakes, then what are the options for a small humble seller?

Marketplaces such as Flipkart, AskMeBazaar and Alibabaare spending money on fighting fakes. But it is mostly for high- end brands. What about independent designers & small sellers who pour in a lot of money and effort in developing their private label and some other seller just swoops in & copies their listing?

Amazon’s argument, ‘we don’t enforce’

Whether it is the fear of losing revenue or sellers, Amazon states that the marketplace can’t enforce. Even in the US, sellers have been urging the ecommerce leader to penalize infringers from years but it has refused to take any serious action.

In the below image, you can read about Amazon’s ‘We Do Not Enforce’ under itsReport Infringement tab:

Tara Johnson, Lead Reporter, Retail at CPC Strategy wrote in one of her blogs,

“For several years, brands have asked Amazon to help them find and punish unauthorized resellers for their violations. Unfortunately for brands, Amazon takes a percentage of third party sales within their marketplace and is hesitant to enforce seller pricing agreements and risk losing revenue.”

Alans Ng, an Amazon.com seller left a comment below the article:

Amazon India sellers too are tired of the standard replies ‘We are unable to take action based on your complaint because’ or ‘A dedicated team is working on that issue and it would be resolved soon’. Being asked to ‘test buy’ is another pain point for merchants.

We wanted to hear the other side of the story as well to understand a marketplace’s viewpoint. Here’s what a spokesperson of Amazon India had to say,

“We take the issue of fake & counterfeit products being sold on our marketplace by sellers very seriously. Sellers are mandated to sell only genuine and original products on Amazon.in and they sign an undertaking to do so.  If it is brought to our notice that sellers are using our marketplace platform to sell fake or counterfeit products, we work with the sellers to bring such products down from our website. In case of repeat offenders we do not hesitate to take strict action and may even go to the extent of delisting them from our marketplace. There have been several instances where sellers have been delisted.”

Legal rights of a brand

As per the law, people who sell counterfeit products have no immunity whether it is offline or online platform. In this IOS article on ‘Laws of Indian ecommerce’, Rakhi Jindal, ‎Senior Associate (TMT) at Nishith Desai Associates had clearly stated,

“If a seller is selling counterfeit goods on an e-commerce platform, the seller will not face immunity due to the fact of transacting on a marketplace. The general laws in relation to counterfeit products, copyright law etc. equally applies to e-commerce space.”

Amazon India too has authority to ban/remove infringing sellers. But there’s a catch with regards to selling ‘genuine’ products by unauthorized dealers. A person usually has the right resell branded products in an unchanged state.

Like the Amazon’s support team wrote,

“Review that you are reporting against a different product being sold against your listing and not against another seller for selling the same product without your authorization. Please note that Indian laws don’t allow any restrictions against selling of a genuine product.”

However, the emphasis is on the word ‘unchanged’ or ‘different’. If it comes to your notice that your products are being sold even with a slight difference, you have every right to demand that the listing is taken down. That’s why Amazon insists that sellers try a ‘test buy’. So that they can spot the alterations and report the same.

Online sellers, law is on your side even if marketplaces aren’t in case of outright trademark violation. If your brand value is deteriorating and you are losing sales due to infringement, please consider taking the legal route and filing an official complaint. Be persistent with your complaints and keep collecting evidence. If you haven’t done it yet, please register your trademark and clearly state the selling & reselling rights.

As for marketplaces like Amazon, we hope they take this brand infringement issue seriously. Ecommerce sites have very few differentiating factors and are crowded with similar products. It can use private labels and distinct brands to stand out. If brand owners won’t be able to protect their creation, then what will motivate them to join marketplaces? Please think.

Jabong’s troubles continue, faces possible funding shut off

Jabong is trying to maintain balance in a rocky ship. The fashion retailer, which is a part of the Global Fashion Group (GFG), has seen rapid decline in its valuation over the past few months. Recently, GFG’s principal investors, Rocket Internet and AB Kinnevik put in $339 million to the group. However, along with getting more money, GFG’s value was brought down by a whopping 68%.

When Jabong debuted in the Indian fashion market, it was keeping pace with veterans like Myntra. However, today Myntra, Flipkart and Amazon have outpaced the company. Jabong’s senior management and all its founders walked out, leaving the company to hire a fresh set of management team, including a new CEO. Sanjeev Mohanty, former MD of Benetton India, took charge as CEO of Jabong in late 2015.

Seeking help all around

Jabong also sought the services of Avendus, a financial services firm to help improve its fortunes. However, nothing helped in the company’s attempts to find a suitable buyer. A source familiar with the developments at Jabong has revealed that GFG might simply give up on Jabong and not fund the fashion etailer any more.

Citing inability to meet targets, the person says on condition of anonymity,

“The company has failed to meet targets set by global investors and hence India is not on the priority list.”

However, Mohanty is trying to retain a cheerful and optimistic exterior. He plays down the severity of the situation with,

“The funding round by GFG demonstrates the belief of internal shareholders in the fashion e-commerce opportunity in all its six markets and to fully capitalise them. As per the quarterly rolling forecast, the funding (to Jabong) comes in on a monthly basis. We remain committed to expanding and improving, not exiting, our business.”

All this is certainly worrying, particularly in the backdrop of the worrying changes that the new FDI regulations have brought to online marketplaces.