WS Retail’s FY17 revenue declines 66% to ₹4,628 crore
WS Retail posted revenue of ₹4,628.1 crore in FY17, compared to ₹13,921.2 crore in FY16
Bengaluru: WS Retail Services Pvt. Ltd, the largest seller on Flipkart’s marketplace, has posted a 66% drop in overall revenues for the year ended March 2017, after the Indian government passed foreign direct investment (FDI) laws prohibiting any one seller from contributing more than 25% of overall sales of any marketplace.
According to data sourced from business information platform Tofler, WS Retail posted revenue of ₹4,628.1 crore in FY17, compared to ₹13,921.2 crore in FY16.
Flipkart had planned to shift a majority of its sales to a handful of third-party sellers referred to as “alpha seller,” as Mint reported in April 2016. At that time WS Retail was contributing 35-40% of Flipkart’s business, after Flipkart accelerated its shift to a marketplace model.
Though WS Retail is Flipkart’s biggest seller, the e-commerce company has gradually reduced its dependency on it by working with several new sellers, including Health & Happiness and Tech Connect, Mint reported in January 2017. This was required after the 25% cap was mandated by the Indian government in early 2016.
WS Retail also reported a net loss of ₹24.3 crore for FY17, although the seller posted a profit of ₹5.2 crore a year ago in FY16.
WS Retail’s expenses reduced sharply by 66% to ₹4,643.6 crore in FY17, from expenses of ₹13,912.7 crore in FY16. The seller also cut down on employee costs by 81% to ₹11.3 crore in FY17, compared to ₹60.6 crore in FY16.
According to the filings, WS Retail spent ₹4,099 crore in purchases of stock in-trade in FY17, compared to ₹12,911.3 crore spent for buying goods in FY16.
Flipkart’s largest seller was also able to reduce overall transportation and freight costs by 89% in FY17 to ₹37.6 crore, compared to transportation costs of ₹371.6 crore in FY16.