Flipkart , owned by US retail giant Walmart and Amazon, the Seattle-based e-commerce company will get a huge hit as Government of India placing new rules for Online sales.
Government of India said in the statement that the companies will be prevented from entering into exclusive agreements with sellers. “An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity,” the commerce ministry said in a statement.
The new rules will come into force by February 1,2019.E-commerce companies can make bulk purchases through their wholesale units or other group companies that in turn sell the products to select sellers, such as their affiliates or other companies with which they have agreements.
These Multi national E Commerce companies will make bulk purchase of product with help of other group of companies and then sell the product directly to the customer. In these cases small vendors and other retailer get affected by the low price which these e commerce companies are offering. Even with the vendors selling the products on Amazon India, company favoring their own units like Cloudtail or Appario. Which they get advantage over others vendors.
These new rules will dictate the services provided to vendors on these e-commerce platform which need to be fair for all the parties.