After Flipkart, Amazon.in has stopped taking high value orders from Uttar Pradesh. While the Flipkart limit is Rs. 10,000, Amazon has reportedly set a tighter Rs. 5,000 limitation. Amazon didn't reveal the reason, but reports suggest "buyer-end malpractices” was one of the factors behind the decision.
"We've had many instances of items ordered from fake addresses. It affects everyone in the supply chain, because a lot of money and time is invested in catering to such orders. Just-for-fun orders are hurting e-commerce," Times of India quotes a courier operator working with several e-commerce websites.
The TOI report points out Amazon doesn't have its own delivery network in the state, and has to depend on regular couriers for delivery. According to the report, Amazon had to deal with same issues faced by Flipkart for high value items. The report further points out abuse of Cash on Delivery options.
Interestingly, the move comes at a time when most of the e-commerce websites are extensively campaigning for the festival season sales. With big festivals such as Navaratra and Diwali around the corner, Amazon's decision is bit surprising. However, in long-term perspective UP is one of the largest markets, especially the NCR including Noida and Ghaziabad, in India. Amazon would not like to miss out on such huge and demanding market.
That said, logistics is definitely a key issue faced by e-commerce companies. Though there have been some improvements in this regard, but it's still a big challenge.
What do you think of Amazon's decision? Is it too harsh, or a right move to end 'buyer end malpractices'? Let us know your views in the comments section below: