Amazon and Flipkart against the government’s Discount policy

Shubham Kumar Shubham Kumar
Aug 9, 2018 2 min read
Amazon and Flipkart against the government’s Discount policy

Govt. to restrict Amazon and Flipkart on discount offers

If you are that one addict of online discounts and offers of Amazon and Flipkart: ALERT

Indian government is rolling out a policy against Amazon and Flipkart regarding minimization of discount.

This might be a shocking news to all the customers of e-commerce platforms like Amazon and Flipkart etc.

Voice out

Now, the two E-Commerce rivals, Amazon and Flipkart with the majority of $18 billion in the retail market have come down to speak due to the government’s tightening on deep discounting and restrictions on online retail. These retailer giants have voiced out for their sustenance in the e-commerce market.

The retailer giants have requested government to consider new regulations which will not affect the discounts provided on e-commerce platforms. They have asked for reconsidering the restrictions imposed on sellers buying in bulk. Their concerns include sharing of data with the government.

Insights behind regulations

A month ago, the government came up with a threatening news to e-commerce sector. Most importantly, Suresh Prabhu, the Minister of Commerce and Industry headed the panel. Furthermore, Commerce Secretary Rita Teotia tabled the draft e-commerce policy before her retirement. This insists on the government’s stern policies and regulations on “deep discounting”

Seems like to minimize the loopholes around sellers and brands the draft policy has suggested that discount curbs will not target the only marketplace like Amazon and Flipkart, also extend to group companies.

The draft policy is mainly to avoid the sellers holding a lump sum share with the retailers. Furthermore, selling the same product at variable prices on different sites.

Threats awaiting

Finally, if these restrictions are implemented, certainly the companies will face a knockdown as these online retail sellers depend upon discounts to attract customers thereby increasing the sales. The retailer giants have requested the government to consider new regulations which will not affect the discounts provided on e-commerce platforms.

These regulations imposed by the government not only affects the retailers on an e-commerce platform but also has a huge impact on sellers out there.

Will the Initiative turn out as a hurdle?

Consequently the government has taken initiative to regulate these e-commerce platforms. But it’s going to face a major hurdle in the implementation as the move could directly affect Indian customers who are used to buying reliable products at reasonable rates through discount.

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