Ecommerce, News

After Timtara, now Naaptol raided by officials

Looks like early adopters of online retail were taking customers for granted as after Timtara incident, one more player Naaptol was officially raided in their warehouse as per these reports.

The raids were conducted by Legal Metrology Department at warehouse in Bowenpally (Hyderabad) over a specific complaint and seized INR 1.26 crore of goods including laptops, cameras, home appliances etc. (also confirmed by the department to iamwire)

As per the reports in TOI Hyderabad, legal metrology controller R P Thakur said, “(The warehouse)Pentagon Logistix is a stock point of online product sale company ‘’”. During the raid, the sleuths realized that majority of the goods available at the godown were  imported from China at very cheap prices. In newspaper ads, the company usually claims to sell a product worth about Rs 2,000 for just Rs 500, whereas the actual prices of the products would not be more than Rs 200.”

The warehouse management were replacing price tags with their own hiked prices and were also not mentioning the details of the manufacturer which is illegal as per consumer laws.

The department will also be serving notices to 12 suppliers of Naaptol.

Well its not surprising to know that Naaptol was onto something ‘big’, since iamwire received a large number of customer complaints on the interview of Manu agarwal conducted last year. Also when iamwire approached the investors of Naaptol to highlight the issue, the investors passed the ball simply on to the supplier side inefficiencies.

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Naaptol works on the model of selling goods at considerably lower price , and also targets the consumers of Tier 2 and Tier 3, who have a soft corner for ‘high-tech’ at extremely low prices.

For the same, Naaptol founder further went on to launch a TV channel ‘Cinema TV’ to show hindi movies, receiving interests from the same TG, and sell on the airtime it gains from those channels with their own ads.

Naaptol is also one of the heavily backed multi-channel ‘product marketing’ company, as it had raised INR 33 crores from Canaan Partners in 2010, and then raised another round of $25 million (Rs 123 crore) from New Enterprise Associates (NEA) with existing early investors in 2011.

For all the readers who had filed a complaint with iamwire, now might take it up to the officials as well.

A lot of consumers who ever faced the problems with online sellers usually do not get them resolved as they can not get to the sellers personally, also lot of them get stuck with the customer support team of the retailers and give up the hope. Even lot of them never come to know where to complain if not to the company.

Reply from Naaptol

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Completly stating the reports as false Naaptol claims that it is only a marketplace and an enabler for vendors to connect with buyers. They deal with over 1000 vendors and over 1 Million products. Vendors own their inventory and have their own warehouses.

Legal and Metrology is  a department which monitors the MRP sticker contents on the products.  Entire responsibility of the products rests with Vendor. What the department pointed in raid to some vendor warehouse was on some discrepancies on MRP stickers as per standard.  Standard specify things like Date of Manufacture, Contents on the address of manufacture etc.

Marketplace really?

As Naaptol now claims to be a marketplace model, the question remains who is actually selling to the consumer? Naaptol promotes its products without mentioning the sellers and act as a main point of purchase for consumers. It also refuses to take the responsibility of the vendors involved in the above activity.

Where does it leave the customer making a complaint?

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  1. 1

    naaptol has its warehouses in gurgaon and hyderabad..for their newspapers readers offer they stock the goods in their warehouse and the billing is done by the vendor to the customer. naaptol just acts as a commission agent between the parties. for its online sales naaptol works on the dropshipment mode.

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    Thats the problem with most of the early adopters and even with some recent adopters. They do not understand the basic difference between an online store and a marketplace.

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