According to the Government, Firms like Flipkart and Amazon can no more sell their own products

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According to the Government, Firms like Flipkart and Amazon can no more sell their own products

Online shopping has become such a fingertip enjoyment to all the shopping lovers that it has become very usual for all to pick up daily some stuff from the internet shopping. But the government has imposed few policies for it. See what terms and conditions have been applied by the Central Government of India.

The current status says that the Indian government has now disallowed the big firms like Amazon and Flipkart to sell their own products online. The e-commerce companies will now be no longer permitted to sell their own products, which includes products of companies they hold shares in as it creates a problem in the interest.

The condition will be applicable from February 1, 2019, as such e-commerce companies will no longer be able to make an entry in the exclusive deals and agreement with the sellers.

Firms like Flipkart and Amazon can now provide the services through the e-commerce marketplace entity or any other companies in which they have direct or indirect equal participation or common control to shopkeepers in a fair and non-discriminatory way, this was added in the revised policy of Foreign Direct Investment in e-retail companies. Presently, 100 % FDI is permitted in marketplace e-commerce but not in inventory-based activities.

This step is taken because of the small retailers who filed a complaint about pricing and providing huge discounting exercised by e-commerce marketplaces. So to stop the dominance of big firms on small retailers, the government has come under to sort out the problem suffered by the small vendors. Meanwhile, every year in the month of September, these firms have to file a certificate along with a report of a statutory auditor to the Reserve Bank of India to confirm they are following all the guidelines of the government.

For more deets, stay tuned with Laughing Colours.

Published by Shifa Naz on 28 Dec 2018

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