Govt appeals to Amazon & Flipkart to render equal treatment to sellers
Category: #retail  By Pankaj Singh  Date: 2021-03-16
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Govt appeals to Amazon & Flipkart to render equal treatment to sellers

The Indian government has reportedly asked e-commerce firms to treat their sellers on an equal basis on their platforms to ensure transparency, cites a draft policy that focuses on criticism against business practices of large online companies.

If reports are to be believed, India had been pondering a new e-commerce policy for several months amid backslash from brick-and-mortar retailers, who have alleged that online frontrunners like Amazon and Walmart’s Flipkart flout federal regulations. However, these multinationals have denied these allegations.

It has also been disclosed that Amazon has been consistently offering preferential treatment to a small group of sellers operating from its India platform and has seemingly used them to circumvent the foreign investment rules for the country.

According to the latest draft of the policy document, the operators are required to be impartial in their dealings with sellers. It mentions that e-commerce operators must make certain that equal treatment is offered to all sellers or vendors that are registered on their platforms, whilst refraining from algorithms that lead to prioritizing of select vendors or sellers. It also states that e-commerce firms should bring out clear as well as transparent policies on online discounts.

Apparently, the policy would be applied to Amazon and Flipkart, the leading e-commerce players in the country, along with domestic participants, including Reliance Industries, which is looking forward to expanding its JioMart online platform.

Sources have also revealed that India is reflecting on changes to foreign investment rules to prompt e-commerce giants like Amazon to restructure their ties with various other major sellers.

Citing reports, top government officials operating from several departments, along with the commerce ministry recently held a meeting to discuss the e-commerce policy. However, there was no immediate clarity on the timeline of publication and its subjection to further changes.

Indian traders have also criticized the steep discounts offered by online firms which are unmatchable to the smaller retailers.

Source Credits

https://www.news18.com/news/tech/govt-asks-amazon-flipkart-to-treat-all-sellers-equally-in-draft-e-commerce-policy-3535889.html

 



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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