Online vendors allege differential treatment by Amazon
In light of the recent changes in the Foreign direct investment (FDI) policy on ecommerce, All India Online Vendor’s Association (AIOVA) alleged differential treatment to sellers by Amazon. The online vendors' body has sought transparency in the manner through which brands are promoted on the ecommerce giant.
In light of the recent changes in the Foreign direct investment (FDI) policy on ecommerce, All India Online Vendor’s Association (AIOVA) alleged differential treatment to sellers by Amazon.
The online vendors' body has sought transparency in the manner through which brands are promoted on the ecommerce giant.
AIOVA said it is unclear if such promotional programmes are in compliance with the new policy.
This issue pertains to a recent email that Amazon sent sellers offering a limited period concession in commission rates on certain brands belong to the sports and outdoor category, bicycle and gym equipment categories.
Powermax Fitness, Swagtron and Kamachi are some brands for which limited period fee promotions have been offered. These promotional rates offered to brands range from 2 percent to 8.5 percent and are valid until February 15.
This is an exercise that Amazon conducts regularly with different brands.
The company remains committed to complying and is in compliance with all applicable Indian laws and regulations, Amazon said.
"Prices for products on the Amazon.in are determined by the sellers. We work hard and continually innovate to offer services that enable them to significantly lower their cost of selling and reducing defects as they sell to a nationwide customer base," the company said.
The FDI policy which is effective February 1 onwards, states that the marketplace cannot directly or indirectly influence the price of goods and services and maintain a level playing field.
It’ll be interesting to see how this shapes up as online players are still in discussion with the government on the implications of the changes.
First Published: Jan 15, 2019 9:49 PM IST
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