Cloudtail, the Indian subsidiary of Amazon, is exiting the food segment so as to sell the output on Amazon.in. Cloudtail is primarily a retailing arm of the US-based company, which is presently planning to sell output locally in India, said industry executives sources to the Indian daily news, The Economic Times.
Owing to licensing norms, Cloudtail, the Indian vendor of Amazon, cannot trade imported food products in India and thus, is hiring independent vendors to sell its products locally.
As per the license norms, only locally produced and packed food products can be sold on offline as well as online channels.
Cloudtail will no more buy locally produced food and that will be entirely done by ARIPL, said industry executives.
As a result, Cloudtail is recruiting new independent vendors as Amazon Retail India (ARIPL) is not permitted to sell its imported foodstuff on etailer, Amazon, apprised sources.
ARIPL continues to scale up its infrastructure and selection for made-in-India food items. It is on track with its plans to partner with the Indian agricultural community toward creating a modern farm-to-fork food supply chain of processing, warehousing and distribution hubs to connect with the end-consumer across India, Amazons spokesperson told the Indian daily news, The Economic Times.