April 20, 2021

Cell retailers name for Amazon probe, cap on on-line smartphone gross sales

An Indian commerce group representing 150,000 cell phone shops on Monday urged Prime Minister Narendra Modi to analyze Amazon‘s enterprise practices within the nation and impose a every day cap on a single vendor’s on-line smartphone gross sales.

In a letter despatched to Modi, the group cited a Reuters particular report revealed final month that exposed Amazon has for years given preferential therapy to a small group of sellers on its Indian platform, utilizing them to bypass the nation’s strict overseas funding rules.

The report was primarily based on inner Amazon paperwork dated between 2012 and 2019. To learn the particular report click on

“We have been already conscious of Amazon’s thought course of and technique,” the All India Cell Retailers Affiliation (AIMRA) wrote within the letter. The paperwork, the letter mentioned, “have revealed that Amazon is doing enterprise in India with the technique of deftly dodging the regulators and politicians”.

AIMRA urged the federal government to “droop all Amazon actions in India” till there may be an investigation into the corporate’s practices.

Amazon says it would not give preferential therapy to any vendor on its market and has at all times complied with Indian regulation.

Amazon and Modi’s workplace didn’t instantly reply to a request for touch upon Monday.

Indian retailers, a vital a part of Modi’s assist base, have lengthy alleged that Amazon and Walmart’s Flipkart flout federal rules and that their enterprise practices harm small merchants. The businesses, which run the 2 largest e-commerce platforms in India, deny the allegations.

The Amazon paperwork reviewed by Reuters confirmed the corporate helped a small variety of sellers prosper on its web site, discounted their charges and helped one minimize particular offers with massive tech producers comparable to Apple Inc.

Some 35 of Amazon’s greater than 400,000 sellers in India in early 2019 accounted for round two-thirds of its on-line gross sales, the paperwork additionally confirmed.

AIMRA mentioned in its letter the federal government ought to cap a single vendor’s every day smartphone gross sales on Amazon and Flipkart at Rs 500,000 ($6,829).

The group additionally alleges the U.S. corporations promoted gross sales on their platforms via most popular sellers, asking the federal government to analyze tie-ups between smartphone manufacturers and these sellers.

Flipkart didn’t reply to a request for remark. Within the particular report revealed final month, Amazon mentioned in an announcement that it was serving to small companies in India and that it “treats all sellers in a good, clear, and non-discriminatory method”.

Brick-and-mortar retailers have mentioned they’re struggling to compete with the tech giants as on-line smartphone gross sales growth. By 2019, 44% of smartphones in India have been being bought on-line, with Amazon and Flipkart dominating the gross sales, in accordance with Forrester Analysis.