Alibaba and Paytm are all set to provide a podium to the Indian sellers to sell five million products from China at a cheaper rate. In its recent announcement, Paytm stated that in order to extend its association with Alibaba, it will be equipping its sellers with an option to source products from China at cheaper rates, as well as helping them with logistics and payments.
Elaborating further about the move, the company added that it has identified about 25-30 Indian merchants with a credible track record to incubate categories including home and kitchen, fashion & mobile accessories, western fashion and micro innovation including USB cookers etc to kick start the pilot. To get on board, the company is targeting at least 10,000 merchants by the end of this year. Initially, access to more than 5-million products from China will be offered to them.
Bhushan Patil, who will be leading Paytm’s latest inclusion said that Inventory is the third pillar of commerce, after logistics and payments, which requires optimisation in India.
The company further said that its recent move will boost its B2C commerce business module as the customers will not only get an array of quality products but at competitively cheaper rates.
According to Patil, who was the heading the Alibaba Group Holding's wholesale international business before he joined Paytm three months back, “Sellers who source products using Paytm ties are allowed to sell on other marketplaces including Flipkart, Snapdeal, Amazon and ShopClues etc.”
Commenting further, Patil added that the company expects the Indian SME's cost to come down three times with our direct connect. Most of the SMEs import from local distributors rather importing directly. We connect directly which reduces the steps and lowers the cost. Paytm also offers bonded warehousing facilities, leveraging its tie-ups with import houses and trusted payments with their partnership with Citibank, which further reduces costs at scale.