What is Amazon Cloud Tail?

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Hello everyone. Welcome once again to this special training

program of Learn Vern, where we are learning “How to sell effectively on

E-Commerce?”

Well, yes.

We covered all the details step by step including how to effectively launch your business on e-commerce? How to take the first step in e-commerce?

We have discussed all of these including every topic in our previous modules.

This module especially, my friends, is like a special bonus training program from us to you all.

Well, yes.

So, what are we going to learn in this training program, in this special module?

Friends, we are going to learn a few important topics, topics which are very important for you to understand.

In this e-commerce journey, there are many topics, many websites, such tricks, and many things that are very important for you to understand because, in the future, these things will help you, this knowledge  will help you to grow more. Okay.

So come, let’s start with our first topic, which is “what is amazon cloud tail?”

Yes. You might have heard the term “cloud tail” on amazon.

So, if you have seen, heard, or read about it, then cloud tail is India’s most customer-centric retailer.

Yes. It is a retailer that purchases the products in bulk from the manufacturer or the producer of that product. Yes, they buy in bulk. And then distribute it in small ways individually.

Let me explain this to you through an example. Now, look, this product is Godrej’s special product “hit”.

You might have seen or heard about it several times. I am not promoting it, friends. I am using it for educational purposes just to give you an example.

Now, here, on the right-hand side, “in-stock” is written but it is “sold by cloud tail India”.

Yes, “sold by cloud tail India”.

A company as large and popular as Godrej has written “sold by cloud tail India”, why so?

And here when you see the pricing, it is actually less than the actual price on their own website.

Compared to every other platform the cheapest price is available at

“sold by cloud tail India”. As you can see on the screen.

I am going to show you practically as well, friends.

So, Let’s go and have a look at this practically…

Well, friends, whenever we enter amazon, and in amazon, we go to other products. Once again, I would like to explain through an example. So, let’s say I type “ariel”.

“Ariel” is a detergent wash company that makes detergents. And it is also used in our homes. (Right?)

So, whenever you want to purchase “ariel” through amazon and you click here on any product of ariel.

Now, as soon as you click on ariel you will see this landing page where on the right-hand side you can see “sold by cloud tail India”. Okay.

See a company as large as Ariel, which is actually the child company of some other mother company. Then, why is this product sold by cloud tail India here?

So see, many companies give their product in bulk to other companies to gain more profit.

So yes friends, Cloud tail is also one of those companies that purchase the whole stock in bulk. Yes, they purchase in bulk on a very large scale because they get a very good margin while purchasing in bulk. And due to good margins, they can’t refuse it. And when you search on amazon...

Let me give you one more example so that you can understand better, when you go to amazon just search “cloud tail India product”.

Yes, “cloud tail India product”. Just type this on amazon and you will find different kinds of branded products. Yes, like dove, you might have heard the name, then lifebuoy, “meswak toothpaste”, medimix, Mr. white, and there are many products like Himalaya too, and I am sure you might be familiar with dettol these products. Then, I am damn sure you must have heard Dettol too.

So, when you click on any of the products from here, any product, On the right-hand side you will see, look, “in stock sold by cloud tail India and fulfilled by amazon”.

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Now, what is cloud tail actually? Well, friends, Cloud tail is a company. Yes.

So, let’s understand it better.

So, “cloud tail”.

Well, cloud tail was launched in August 2014.

When it was launched, it did a business of 1 thousand 145 crores in the year 2014-2015 itself.

Yes, 1 thousand 145 crores business with just a launch up.

They earned this much between 2014-and 2015. Afterward, in the year 2018-2019, this number increased to “8900+ crores”.

And “MSMEs”, more than “700 MSMEs” are registered with it.

And this is fully owned by or you can say “wholly-owned by a subsidiary of prione business services, which is a joint venture between catamaran and amazon”.

Yes, cloud tail is a very big company. Many other companies invest in it. And this company has created a distribution channel at its own level in which there is a supply chain. I gave you an example of a supply chain last time. How does it work?

In that, “raw material, supplier, manufacturer, distributor, the retailer”, and then product finally reaches to the “consumer”. So, they purchase in bulk from the retailer and sell it to the customer in small-small amounts.

For example, if I purchase 1000 products in bulk, then what will the manufacturer say? Well, he will say that if you are purchasing in bulk, I will give you the rates accordingly.

After that, the cloud tail keeps the product and distributes it to the consumers.

If it is distributed, then cloud tail takes care that it is delivered to their consumers or the customers at a cheaper price.

Yes, this is their main motive and that’s how they earned this much profit. Okay.

How can a business gain so much profit? Well, this is a strategy.

Amazon and other companies planned these strategies that cloud tail will sell it at the cheapest price in the entire market.

And it is not just selling any product, they sell important products.

Yes, friends, they are selling very special products.

So, let’s see it practically. Why am I showing you this practically? I have a reason to show you this practically, friends. Because you will understand it better in a practical way.

E-commerce is a practical way of doing everything in the digital world. Okay.

Whatever is going on in the internet world, you can only understand if you see it in a practical way.

So, let’s go and see this practically. Let’s say, I am going to give you the same example of the hit. Hit is a product. Hit is a product of Godrej.

Right now, I am on the website of godrej hit dot com and I want to buy this product from here. Okay.

Every feature and all information are available here, you must go and check this out.

Now I am going to click on “buy now”, see as soon as I click on “buy now”, you can see a screen here on the right-hand side.

As you can see the screen on the right-hand side friends, (4 seconds pause) from this, now I have to choose “buy now” here.

Look, as soon as I choose buy now, see on the right-hand side when I click on “buy now”, you will see the pricing here.

Look, on “amazon”, the price is “229 point 00”, then in “big basket” the pricing is 230.00, and the pricing on “grofers” is also 230.

This means that the price on other platforms is 230, but the price on amazon is 1 rupee less than on the other platforms.

So, as promised, cloud tail is popular for selling all the products at a cheaper price. It is very famous. All the products that you get from cloud tail are already at the cheapest price.

Come, let me show you this on other platforms as well.

For example, “big basket”, so I have already opened this page of the big basket. As you can see the price is “230” here for the same product. Look, it’s the same product. The manufacturer is also the same. Godrej. The price is 230.

Then, when you go to Flipkart, look, here the price is 229. If you check the same product on “apollo’s” website, then the cost is 270 here. In jio mart, the cost is 250. And lastly, on amazon, the cost is 229. Okay.

Flipkart is also in the competition, friends. Let me refresh this and show you again. So, the cost is the same on Amazon and Flipkart. But most of the time, the cost is way cheaper on amazon. And this will keep getting cheaper in future.

Now, why are they selling at such a cheaper price? Well, friends, there is a pattern and strategy behind this. Cloud tail wants to sell all the products at a much cheaper rate to their customers on amazon than on all the other platforms and marketplace.

And if sometimes the cheaper product is found somewhere else, they try to lower their price and sell.

Now, why are they buying and selling at a cheaper price? How do they benefit from this?

Well friends, we just saw that their entire revenue growth depends on selling at a low budget. Therefore, cloud tail makes sure that the customer receives the product at the cheapest price. Okay. This is the main motto of cloud tail friends.

Cloud tail is a huge company that is directly affiliated with amazon. If you are selling any product through cloud tail, then I guarantee that your product will be sold in bulk at a better price and you will benefit a lot. Okay. (I hope you are following)

Now, how to contact the cloud tail? So, you already know all the benefits of selling through cloud tail but now how to contact them?

Look friends, to be honest, no one can contact them directly. If you search for their website online, you will find a form there.

So, you have to fill out that form but it takes time. They take a lot of time to revert back to you. But, if you sell your product nicely and maintain it, if your product is selling successfully and boost more traffic on amazon and if the people are liking your product and giving positive reviews, then cloud tail will contact you directly.

They will contact you directly and say that look, we like your product, do you want to join hands and sell your product at a much higher level? And the answer is yes obviously. You will obviously say yes because you also want to sell your product to them in a bulk amount and when you sell in bulk, you get a good income. (Right?)

For instance, let’s say, I am earning 2 rupees profit per product. So, when I sell in bulk, the profit of that 1 product is multiplied in bulk. It can be multiplied by 1000, 2000, 4000, or 5000. They will purchase the product in bulk; hence my profit will also multiply and I will receive the amount in bulk.

Therefore, the wholesaler, distributor, or retailer buys the product in bulk from you and sells it to the customer. That is their only source of earning. (Understood?)

Now just imagine. Cloud tail purchased the product in bulk from the manufacturer itself, just imagine the profit ratio and how much they will compromise the rates for their users.

Suppose let’s say you are the manufacturer or the owner of the product and you have produced the product, cloud tail comes to you and says, I want to sell this product at the cheapest price, sell me your product in bulk, and accordingly I will make the payment.

Okay, so your product is easily sold in bulk which is beneficial for you as well as cloud tail and the customer as well. So overall, this is a win-win situation. Okay.

Now there are a few things that you should know about. Look, until now I explained to you all about cloud tail. Cloud tail is a very huge company. If you want, you can check their website. If you want, I can show you their website right now. Just a second.

Just go to any web browser that you use and simply type “cloudtail”. (Pause- 6 seconds, typing)

As soon as you type cloudtail, you will see this page. The URL is cloudtail dot in. When you click on it, their website will open here. You can visit their website and gather all the information.

How does cloudtail work? What is their company’s background? Who runs the company? You can see each and every piece of information on this website. (Are you getting it?)

But there are certain things that you won’t find on their website or even on amazon. I realized that after doing my research. Okay.

There are a few advantages but at the same time, there are some disadvantages too. You need to know them all. So, what are the good and bad facts about cloudtail?

Let’s have a look at the advantages and disadvantages. Now look, the most advantageous point is “wholesale price”. You are getting a good wholesale price in bulk for your product.

Plus, you won’t have any “payment issues”. To be very honest with you, there is no problem. This service from amazon is very good. You will get the payment on time, though sometimes it might be late. There is a buffer time of 30 days. You can get paid before that too if everything goes well. (Good, right?)

But, at the same time, there are some disadvantages. You need to understand the cons too. I am not trying to demotivate you at all, by repeating the disadvantage repeatedly. But you must know this.

Now look, the “payment will be settled in 30 to 35 days” you will receive the payment, that I guarantee. But after 30 to 35 days.

Now think about this from the perspective of someone running a small business or a low scale or middle scale business owner, they have very less capital. Suppose they have to manufacture a product on credit  and sell it to cloudtail in bulk in a limited time, for that they have almost no capital. Hence, for a low-scale business owner, fulfilling the target or fulfilling cloudtail’s requirement becomes quite tricky.

There is one more disadvantage that I want to tell you. It is related to the price range. Look no matter how much you charge for this product on your website. For instance, let’s say you are selling your product on your website or any other platform like jiomart or apollo as we saw previously.

Sometimes the cost might be similar on different platforms like the amount is the same on Flipkart but not on any other platform. But suppose the cost of your product is 799, but it is shown as 599, even your customer can see the price as 599.

Now look, suppose you break your contract with cloudtail and start promoting and showcasing your product on your website and other various platforms at a certain price.

Now think, the customer that purchased the same product last time will have that same price in their minds. I purchased the product for 599 last time, why did they increase the price now? In such scenarios, brand value is affected. If cloudtail decides to sell the product at a certain amount, then they will stick to that amount.

While signing the contract, they will get your sign on the terms and conditions as well where they have clearly said that they will reduce the price.

Cloudtail will try to sell the product at the cheapest price. That’s their motto. Hence, they will convince you to sell them at a cheaper price. (Clear?)

Now at the start, everyone will agree as they are getting the amount in bulk. But in the future, when you build your own brand, this point will create doubts and bother you somehow.

As you have already sold the product at a cheaper price, it might take time for you to build your brand and make it visible again. And somehow, your brand value might get affected in front of the customer’s eye. They might eventually switch to some other product.

Well, friends, these were some of the advantages and disadvantages that were important for you to know.

And there is one more thing which is important for you to know. Yes, this is important news for you. Until now, I told you about all the insights of cloudtail, and recently one news of cloudtail became very famous. And this is going to create a good shift and turn over the market. So, you must know this news, friends.

This news is from “the economic times”. On 9^th August 2021, the economic times published this article, where they broke a big piece of information and made the world aware that “cloudtail India to shut down in May 2022”.

Yes, in May 2022, cloudtail India is shutting down. So, if you are dreaming of partnering with cloudtail, do read this article first.

And after this, one more article was published that said “Amazon seeks CCI’s nod to buy catamaran’s stake in cloudtail”.

Yes, so there are many articles that are published related to cloudtail. And I am not fully aware if cloudtail is going to keep running or not but you will get an idea for sure. Cloudtail is a very good idea that amazon won’t let go of.

But due to some government norms, cloudtail is facing some problems surviving in this current scenario. So, there is a probability that cloudtail may shut down or may not.

If you are watching this video now, then please stay updated with the news if cloudtail is running or not. Keep updating yourself and keep gaining more knowledge through the internet.

Try to get all the facts straight and receive news from a valid source as I just showed you the article from the economic times which is a valid source.

So, try to find out if cloudtail is working or not through a valid source. If it is working, then try to contact them because when your product is sold in bulk, it is definitely beneficial for you.

So, through this short training session, I explained all about cloudtail along with all the facts.

But still, if you have any queries or comments, click the discussion button below the video and post there. This way, you will be able to connect to fellow learners and discuss the course. Also, Our Team will try to solve your query.

So, See you there with the next topic at the next session.

Thank you very much.

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