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Amazon's Cloudtail successors struggle to onboard old sellers

Amazon sellers are growing impatient as a result of the difficulty the businesses who inherited Cloudtail's network have had in matching its efficacy.

What is happening: With Cloudtail gone, sellers are abandoning Amazon to sell on smaller platforms, opening their own websites, and even going back to selling to a brick-and-mortar storefronts.

Why it matters: Cloudtail was once a one-stop-shop on Amazon India for millions of people to buy anything under the sun.

  • Cloudtail’s heirs have been struggling to fill its shoes in the Amazon India ecosystem.

The big picture: At least seven new aggregators took over from Cloudtail. These include the likes of Cocoblu Retail, VRP Telematics, and Dawntech Electronics, according to multiple Amazon India executives

Backdrop: The Indian government made the decision to limit Cloudtail's and similar companies' dominance in 2016–17.

  • Few years later, when the government forbade platforms from owning interests in their top sellers, Amazon, which had a stake in Cloudtail, left the company.

  • Facing intense pressure, Cloudtail eventually decided to close and was dissolved in May 2022.

Numbers: Cloudtail, before dissolution, accounted for at least a third of all items sold on the e-commerce platform, which reportedly registered a gross merchandise value (GMV) of $17 billion in the year ended March 2022.

What is being said: Amazon executives speaking about sales-growth slowdown in 2022, said,

“We are definitely climbing down from the double-digit sales growth of the pre-pandemic and pandemic years, and 2022 has likely seen a single-digit rise."

Quick read: Ever since the dissolution of Cloudtail, Amazon has suffered in terms of filling its shoes. New successors have failed to pick up Cloudtail efficiency even though it is mainly made up of ex-Coldtail employees.


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