Reseller fraud is hurting the prospects of e-commerce of smartphones in India

Smartphones have become one of the ace categories for e-commerce players including Amazon and Flipkart playing a pivotal role in increasing their GMV or Gross Merchandise Value. Smartphones contribute an estimated 47 per cent of the total sales value of e-commerce in India. Other electronics are also becoming lucrative categories including that of Smart TVs.

However, the reseller fraud – a fraud played upon by small to medium tier offline retailers who sneak through various checks and balances of e-commerce platforms and procure Smartphones in bulk for reselling purposes – is hurting the entire online e-commerce value chain of Smartphones.