Sales down by 30 percent on Amazon and Flipkart since new e-commerce policy came into force in India


Since the new e-commerce rules have come into force in India on Feb 1, the sales of Flipkart and Amazon fell by as much as 30 percent. The new regulations prohibit e-commerce companies from holding any stakes in companies that sell on their platform.

Sales down by 30 percent on Amazon and Flipkart since new e-commerce policy came into force in India-global-annal-bhavesh-kumar.jpg

Also for companies whose overall sale volumes cross the 25% mark on a marketplace shall be barred from continuing to sell on them. To comply with the new government regulations, the two captive sellers on Amazon – Cloudtail, and Appario will only be accepting B2B transactions going forward.

Walmart-owned Flipkart, on the other hand, continues to offer platform-exclusive products like earlier and hasn’t taken them down. On the other hand, electronic products from some leading companies are unavailable on Amazon.

At Amazon, the legal teams are still working towards finalizing a structure that is fully compliant with the new rules.

Cloudtail and Appario ownership structure-

-Prione Business Services owns 100 percent of Cloudtail, which is 49-51 joint-venture between Amazon and Catamaran India

-Appario is a 49-51 joint-venture between Amazon and Patni Group

Source: Economic Times

 

Published by Bhavesh Kumar

A multi-talented media professional with diverse experience spanning across journalism (digital and broadcast), management consultancy and documentary filmmaking. Worked for the leading newspaper (the Times of India) and news broadcaster (NDTV India) on their web portal, feature stories, shooting, scripting, programming and editing broadcast news. A creative mindset focused on executing new-age strategic communication initiatives with all its corresponding elements (clear and coherently written key messages, social media marketing and multimedia content) to ensure effective target audience impressions. Also, worked on several primary and secondary market research projects (Market Feasibility Study) for business expansion into new markets.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: