ClickTech Retail, a major seller on Amazon India, is buying Appario Retail, another prominent seller on the platform. This move is part of Amazon’s strategy to reduce its ownership in seller entities. Appario became the largest seller on Amazon India after Cloudtail shut down. Amazon is divesting its stake in Appario’s parent company, Frontizo Business Services, to comply with local e-commerce rules.
This is the second time Amazon is reducing its ownership in a seller entity. Appario Retail is under Frontizo Business Services, a joint venture between Amazon and Patni Group’s Zodiac Wealth Advisors. In 2022, Amazon announced it would remove Appario Retail as a seller to meet local regulations. Now, Amazon is acquiring Zodiac Wealth’s stake in Frontizo, pending regulatory approvals.
Amazon India Seller Appario Acquired by ClickTech
Appario, a big seller on Amazon India, is being bought by ClickTech, another major seller on the platform. This means ClickTech will now own all of Appario’s business. Frontizo, Appario’s parent company, will become fully owned by Amazon.
According to Raj Jain, an executive director at ClickTech, the company sees an opportunity to grow by adding more products to its offerings on the marketplace. That’s why they decided to buy Appario’s business.
ClickTech is supported by the Vinod Poddar group, which is known for its involvement in industries like steel, coal processing, real estate, and plastics. Appario was the last big seller on Amazon India where Amazon itself had a stake.
Amazon’s Plans for Appario on the E-commerce Platform
In October 2022, Amazon said it would remove Appario from its platform. This caused concern among smaller sellers and faced pressure from regulators. In November of that same year, Amazon and Patni Group were looking at different ways for Appario Retail to keep selling on the platform.
Appario makes money on the e-commerce site by selling traded goods, including ones that are damaged. When Cloudtail, another big seller, changed hands, firms like ClickTech and Cocoblu Retail bought its inventory. Many of Cloudtail’s employees and management then joined these new companies, which became important sellers on Amazon.
Amazon and Zodiac Wealth Advisors End Joint Venture
Amazon and Zodiac Wealth Advisors have decided to end their joint venture. This means they’re stopping their partnership.
“Patni Group and Amazon have had a good relationship since 2017,” Amazon said. “Earlier, they both agreed to stop Appario’s business on Amazon.in.” Appario became one of the biggest sellers on the e-commerce platform after Cloudtail, another joint venture firm, closed down in May 2022.
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