E-commerce marketplaces Amazon and Flipkart may land in another ditch as a group of small and medium online retailers have written to the Prime Minister’s Office alleging exploitation by the online majors.
All India Online Vendors’ Association (AIOVA) accused Amazon and Flipkart of following unregulated and anti-competitive business model, seeking PMO’s intervention to safeguard their interests.
“The control of India’s retail market has been passed on to the hands of two foreign companies. The think tank on e-commerce industry was formed and disbanded without our inclusion or representation.” – AIOVA, which represents more than 3,500 online sellers, in its letter to the PMO.
Preferential treatment given to certain large sellers by marketplaces leading to unfair competition for third party vendors on these platforms, has been one of the major concerns for online sellers.
This comes even as Amazon India is scheduled to host a ‘Small Business Day’ online shopping event next weekend to promote small and mid-size enterprises. The online major will offer products from various small sellers at special prices and cashbacks for buyers on December 16.
“Since our launch in India over five years ago, we have worked relentlessly towards creating a transparent marketplace for sellers of all sizes to sell, grow and offer the widest selection to our customers.” – Amazon India spokesperson
Flipkart also asserted that the company is not only helping SME sellers from across the country, but is also “boosting local manufacturing and the economy”.
