Google has reportedly hit a wall with local retailers in India when it comes to selling its much-touted Android One handsets.

For those unfamiliar with the project, Google teamed up with three companies in India for its Android One, namely Spice, Karbonn, and Micromax. The problem is that these three manufacturers have decided to make their respective Android One handsets available exclusively online, at least at launch. In turn, this decision has caused some hurdles for Google, as leading retail stores across the country are reportedly refusing to sell the devices now.

This whole situation stems from tensions between e-commerce websites and physical stores, as many shoppers typically prefer to make their purchases online rather than visiting a local brick-and-mortar store. In this situation, physical retailers reportedly refuse to sell Android One handsets in their stores.

"Tata-owned Croma, Future Group, Planet M Retail and Next Retail, BigC, Lot Mobiles, Reliance Retail and Sangeetha Mobiles - which together operate more than 1,800 stores - have not stocked any of the three Android One smartphones launched so far, five senior executives said on the condition of anonymity," Times of India reports.

The three Android One makers - Micromax, Karbonn, and Spice - launched their handsets back in mid-September, using the online medium. More recently, however, the manufacturers decided to sell their devices in physical stores as well, as online sales failed to see much success. Retailers, however, are not so open to this idea after the online-only launch.

"Since Android One decided not to sell in physical stores during its launch, we as part of modern trade, have decided not to stock Android One either," Sangeetha Mobiles MD Subhash Chandra further told the Times of India.

This could turn into a big problem for Google, as it could severely limit the success of its Android One handsets. While some retail outlets have started offering the devices, the report further notes that this may not last for long. According to the publication, The MobileStore and UniverCell, for instance, have been selling the Karbonn Sparkle V for a couple of weeks, but don't plan on expanding their Android One portfolio because they saw poor sales.

It remains to be seen whether Google will ultimately work things out with local retailers, but at this rate the Android One project may turn out to be a big flop.