Published: Sun, February 03, 2019
Money | By Ralph Mccoy

Amazon India takes down major products following government ruling

Amazon India takes down major products following government ruling

The new foreign direct investment (FDI) policy which comes into effect from today, February 1, is causing a major commotion to the online retail giants - Amazon, Wal-Mart and other foreign companies.

In December a year ago, the government tightened norms for FDI-funded ecommerce companies including Flipkart and Amazon and said such entities can not exercise ownership or control over inventory.

New Delhi has not allowed FDI in inventory-driven models of e-commerce.

The new norms released in December, prohibit the online retailers from mandating any company to sell its products exclusively on its platform. Amazon and Flipkart have already written to the government stating that they need more time to understand the details of the framework.

Existing regulations state that e-commerce firms can not exercise ownership over the goods sold on their online marketplace. Smaller e-commerce firms like Snapdeal and ShopClues as well as offline retailers have also written to Commerce Ministry, urging the government to not give into pressure from USA companies and authorities.

Amazon India told Reuters it was "committed to remaining compliant to all the laws of the land", adding that all sellers make their own independent decisions of what to list and when.

The two ecommerce companies have been offering huge discounts to overhaul their large inventories as they both operate as online marketplaces partnering with large online vendors such as Cloud Retail, Appario and WS Retail.

Real Madrid draw Barcelona in Copa del Rey semis
The Netherlands worldwide has made six appearances in the competition and saved a penalty in Wednesday's 6-1 win against Sevilla . Barcelona face Valencia at home on Saturday at Lionel Messi looks to score for his eighth league fixture in a row.

Cardi B makes minute-long court appearance during frigid cold
The couple secretly married in September 2017 and their daughter, Kulture , was born in July. I'm a lover of words, photography, books, travel, animals and The Ohio State Buckeyes.

Early spring predicted as groundhog does not see shadow
According to tradition, if he sees his shadow, he regards it as an omen of six more weeks of bad weather and returns to his hole. TIME tested the accuracy of various groundhogs based on their ability to predict the weather of their relative geographic area.

Industry experts pointed out that many partnerships between these e-commerce giants and their sellers are being tweaked to ensure that the online marketplaces are in compliance with the new rules.

Another clause states that the inventory of a vendor will be seen as controlled by a marketplace, if over 25 per cent of the vendor's purchases are from the marketplace entity, including the latter's wholesale unit.

Both Amazon and Wal-Mart have taken a major bet on the Indian growing markets.

Hours before the February 1 deadline on Thursday, numerous items sold by sellers, such as Cloudtail, in which Amazon holds an indirect equity stake, were no more available on the website. For this to happen, he said, a regulatory authority should be formed at the earliest possible to regulate and monitor the e-commerce business of India and much-awaited e-commerce policy should be formulated and announced.

This creates a barrier for India's Shopper's Stop to sell on Amazon India, as Amazon's investment arm has a minority stake in the department store chain.

Also, let's assume Flipkart had an agreement with Xiaomi to sell its smartphone when it would launch its phone "Y". This press note targets e-commerce activities in India, taking a very big swing at exclusivity arrangements between the marketplace platform and the sellers who sell on the marketplace platform.

Providing such services to one seller and not to others in similar circumstances would be deemed as unfair and discriminatory, according to the rules.

Like this: