Retailers dial smartphone makers over delay in claims settlement

Smartphone makers such as Samsung, Oppo, Xiaomi, Vivo, and realme, on Friday received communications from over 150,000 mobile phone retailers across the country over delay in claims settlement.

The retailers, through the All India Mobile Retailers Association (AIMRA) have asked the the manufacturers to settle claims which includes retailer margins, upgrade offers, cashbacks, freebies for consumers, etc, required to boost smartphone sales – within 15 days of the end of such scheme or offer, and the date effective price drops.

The issue assumes significance in the sense that retailers face a significant challenge with their money getting blocked in claims, leading to substantial delays of 30-90 days in getting their dues.

This in a way blocks their working capital, thereby affecting their financial position.

Smartphone brands usually list out offers to boost their sales, for which they reimburse the retailers.

Besides, there are certain sales incentives, which smartphone retailers get from the companies on selling their phones to the consumers.

Any such retailer claims are usually adjusted from the bills of retailers – the amount which retailers owe to smartphone companies – for purchasing inventory.

Besides expediting the claims settlement process, retailers have also urged companies to maintain transparency through their portals or apps with regard to the amount of such settlements.