Thursday, May 19, 2022

What is ‘ Amazon Serial Violation ‘ controversy and why retailers demanding to ban Amazon in India ?

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Some group of Indian retailers on Wednesday urged Indian Government to ban Amazon Inc. They urged ban after news came from ‘ Reuters ‘ about how Amazon has violated government ‘s ecommerce business policies. They termed it as ‘ Amazon Serial Violation ‘.

What is ‘Amazon Serial Violation’ controversy ?

Internal document of Amazon dated from 2012 to 2019 had some shocking revelations about secret business policy of Amazon. In short , the document mentions that how the ecommerce giant Amazon controls inventory and production control which is against the Indian Government Policy. According to government policy, ‘ ecommerce website must be the platform for all retailers to promote their product. Any ecommerce website shouldn’t have any control over the invetory and retailers item.’

The document of Amazon shows how they deal with Big giant companies like Apple and selected big retailers to control product invetory and prices. The company exercised significant control over the inventory of some of the biggest sellers on Amazon.in, the documents showed. With the control over product, they provided discounted price and increased their sell and customer base.

How this goes against Indian Government Policy ?

Amazon and other e-commerce website have no rights to control retailers and company products. Once Amazon started controlling Inventor of those big companies, their selected seller started giving discounted prices. Due to this, sells from Amazon increased and other retailers selling same product faced loss. Retailers should always sell independently. But, Amazon made deal with big giant companies to provide product at less price to their selected sellers. And then those sellers sold it at the best discounted prices. It directly impacts sells of the other small retailers. So, many small retailers came forward and demanded ban of  Amazon for serial violation.

What is Amazon ‘s reaction on this ?

The news first came from United States’s leading news portal ‘ Reuters ‘. Amazon.in retweeted the news and wrote, ” it does not give preferential treatment to any seller on its marketplace,” and that it “treats all sellers in a fair, transparent, and non-discriminatory manner, with each seller responsible for independently determining prices and managing their inventory.”

CAIT in talk with government to ban Amazon for Serial Violation

Amazon serial Violation CAIT

The Confederation of All India Traders (CAIT) which represents 80 million retail stores in India, said “the shocking revelations” in the Reuters story are “sufficient enough to immediately ban operations of Amazon in India.” They said that they will raise this Amazon ‘s serial violation issue in a big way.

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