E-Commerce

Amazon and Flipkart still offering deep discounts, trying to increase sellers

Amazon Logo on a Samsung Phone

Amazon and Flipkart have been hit hard by the new FDI policy. The companies have been trying hard to come around the policies and that is turning out to be the hardest thing to do. The companies are also working towards cutting down the losses they have incurred because of the new policy. Amazon came worse off as they had to take a $45 billion loss on the chin. That said, the companies are trying to get the best out of this new FDI policy.

Amazon and Flipkart, two of the biggest rivals joined hands to fight this thing off. However, the Indian government is adamant and the policy stayed and even the deadline was not postponed. February 1 became a D-day for e-commerce websites. There was sadness all around that sector as the companies were trying to make sense of the new policy and there were negative comments coming from a lot of people and also from a lot of powerful places.

January saw an offseason sale too. The inventory was being cleared and the sale was hidden behind the name of Republic day sale. The companies were even then trying to extend the deadline but there was zero attention paid to their demands. They are still trying to comprehend the number of losses they would still have to take home with them in the aftermath.

That said, the pricing and the discounts haven’t really taken a hit. The phones are still sold at the same price as they were sold before. There hasn’t been much change as well. This is because the company has found a way as they have added many sellers to their list. The aim of FDI was to give the majority and the minority sellers an equal opportunity and that has been done.

Cloudtail was and is a seller on Amazon that used to sell OnePlus at the lowest price possible. Then there were other sellers which couldn’t sell at such an aggressive price. However, after adding other sellers to their list, Amazon now has three sellers selling at the same price. This doesn’t really affect Amazon but the competition between the sellers has increased. The prices are still the same and everything still working just like it used to be.

The rule that doesn’t allow Amazon and Flipkart or any other e-commerce website to kill the competition is the most dangerous of them all. That said, these sellers cannot sell or earn more than 25% from a single product and this is the reason the two giants are trying to add sellers to their list. To increase and spread the products across many sellers. This won’t affect the pricing on normal days. The Amazon spokesperson also said that the sellers are allowed to sell as many phones as they can at any price they want. Amazon cannot tie their hands in any case.

This is the condition of the e-commerce market as of now. The next days will write themselves and the companies will try and cut their losses as well.

-Unmesh Phule

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