Just after a couple of months since the effect of India’s new foreign direct investment (FDI) policy, massive changes are noticed in the way online retailers like Amazon and Flipkart operate. Not only this, these giant online retailers have pulled out hundreds of thousands of products from their stores. However, India drafts an e-commerce policy to treat sellers equally and ensure transparency.
India is a country that has been thinking about the new e-commerce policy in the midst of several complaints from brick-and-mortar companies and retailers who assert online giants like Walmart, Flipkart, and Amazon Flipkart flout federal regulations.
More About New E-Commerce Policy
The newest draft of the e-commerce policy states that operators should be unbiased and balanced while dealing with sellers. Moreover, the draft also says “E-commerce operators are required to make sure that equal treatment for each vendor and seller is offered on their platforms and they do not accept algorithms that result in prioritizing hand-picked sellers/ vendors.”
However, the Commerce Ministry spokesman declined the comment.
Policy Applies to Domestic & International E-Commerce Players
This e-commerce applies to Flipkart and Amazon – the two giant e-commerce companies in India. Along with these, the policy is also applicable for other domestic players like Reliance Industries, which is looking to expand its JioMart online platform. But any of these firms have not responded to this yet.
On the other hand, India is also thinking about the changes to foreign investment rules where online e-commerce companies like Flipkart and Amazon might require restructuring their ties with few major sellers.
In response to this, Amazon said that the company have helped various sellers by giving discounted fees and helping them by providing special deals with big tech manufacturers as per the internal Amazon documents dated between 2012 and 2019. Moreover, they added to their statement that they do not give any sort of preferential treatment to any of their sellers and they treat all sellers equally as per non-discriminatory manner.