Amazon has been defying indian ecommerce fdi rules for many years | Amazon has been trying to throw dust in the eyes of Indian administration for many years

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New DelhiOne hour ago

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The nation’s businessmen, who are Prime Minister Narendra Modi’s vote bank, have already accused Amazon of favoring some big sellers and helping them price aggressively, which would hurt the country’s ordinary traders. is

  • Amazon hid its deep relationships with some vendors and defied the strict rules of foreign investment in e-commerce with them.
  • Whenever India tightened the rules for the safety of small traders, Amazon changed the corporate structure and showed it on paper that it is following the rules.

Global e-commerce company Amazon has been giving more convenience to some vendors on its Indian e-commerce platform for years. This was stated by Reuters in a report citing internal documents of the online market place company. According to the report, Amazon hid its deep relationships with some vendors and defied the strict rules of foreign investment in e-commerce.

These documents from 2012 to 2019 show that whenever the Indian government tightened the rules to protect the country’s small traders, Amazon made a small change in its corporate structure to show on paper that it was following the rules. . India is a big market for Amazon and this report can cause great trouble for Amazon. Traders of the country who are Prime Minister Narendra Modi’s vote bank have already accused Amazon of favoring some big sellers and helping them in aggressive pricing, which causes loss to ordinary traders of the country. .

Amazon claims not to favor any seller

Amazon said in a statement that we have always followed the law, because whenever the policy of the government has changed, we have made certain necessary changes to ensure that we are following the law. The company has also claimed that it does not favor any vendor and every vendor on its platform decides its stock and price.

Two-thirds of online sales of Amazon India are confined to the hands of just 35 sellers.

According to the report, two-thirds of the total online sales in India through Amazon’s website have been reduced to the hands of just 35 sellers, while the company claims that it has more than 7,00,000 vendors associated with them Because of that, there is a big benefit. In the documents of Amazon, it is said about PM Narendra Modi that Modi is neither an intellectual nor a very scholar. They feel that only through strong governance and administration can a successful government be run. PM Modi is known for simple, logical and straightforward thinking. They do not want to get caught in a very heavy-weight academic term.

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Amazon has strong control over the inventory of some big sellers

According to the report, Amazon maintains very strong control over the inventory of some of the big sellers on its platform, while claiming that all sellers run their businesses independently. It has a stake in CloudTel, a leading Amazon vendor. He helped Amazon deal with some big tech companies like Apple. CloudTel is called Special Merchant (SM) in Amazon’s internal document.

Amazon had sold nearly $ 10 billion in India in 2019.

During his visit to India in January last year, Amazon founder Jeff Bezos said that the company would spend $ 1 billion to connect small vendors to the platform. With its inclusion, Amazon’s investment promise in India has increased to $ 6.5 billion. However, a report by Forrester Research states that in 2019, Amazon sold a total of about $ 10 billion in India.

One third of Amazon’s sale is done by only 33 vendors.

Amazon senior executive J. When Carney was to have a meeting with the Indian Ambassador in Washington in 2019, a note was prepared and given to Carney by Amazon employees. The note stated that Kani has to emphasize that Amazon has invested more than $ 5.5 billion in India and has made an online platform available to over 4,00,000 Indian vendors. However, they were advised to hide that about one third of Amazon’s sale is done by only 33 vendors.

Amazon’s direct stake in some big sellers

According to the report, 2 other vendors (SM1 & SM2) on Amazon’s Indian website accounted for 35% of total sales on the e-commerce platform in early 2019. Amazon has a direct stake in these vendors. This means that just 35 of Amazon’s four million shoppers in India accounted for two-thirds of the total online sales of the e-commerce platform.

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