Competition Commission of India (CCI) has recorded a case against Amazon filed by the All India Online Vendors Association (AIOVA). The small online vendors are feeling cheated as the behaviour by Amazon is unfair towards them. They have claimed that the US giant gives preferential treatment to the large sellers and charges much less as compared to the small sellers. Amazon buys goods at wholesale rates from the manufacturer directly. Then they sell these products to the large vendors at a discounted rate and record the loss in their books.
Rocket Commerce, Green Mobiles, Appario and Cloudtail are examples of the most benefited big retailers. The total benefit received by the company amounts to a huge amount which brings down the platform charge of these companies from around 30% to a mere 2%. The smaller vendors still pay the higher charge and if the products are fulfilled by Amazon (FBA) then the rate goes to 40%. This has been claimed to be too unfair by the AIOVA and hence have urged the CCI to ask Amazon for proper compensation.
Recently, the mom and pop stores were up against Flipkart, India’s largest e-commerce website. The reason behind the strike was that the popularity of the e-commerce website is eating into the offline businesses. People prefer to purchase from the online platforms instead of the offline stores. Even the pharmacies were closed a few days ago across India due to a protest against the rising online medicine delivery platforms. The government also seemed to be in favour of these delivery platforms as they allowed the sale of some special drugs that were to be sold only on prescription.
The trend shows that the times are changing in the country and the huge economy is gradually accepting the online way of life. This has adversely affected the offline businesses especially the small shops. It seems that the situation will continue even in the future.