Walmart and Amazon: The list of things that e-commerce companies aren’t permitted to do in India has been increasing for some time, but the new restriction on flash sales is simply too far
Walmart and Amazon: The list of things that e-commerce companies aren’t permitted to do in India has been increasing for some time, but the new restriction on flash sales is simply too far. If the limits are enforced, Amazon.com Inc. and Walmart Inc.’s whole business model might unravel before their investments in a market of 1.4 billion people can pay off. While a noble public purpose may constantly be slapped on as an afterthought to the most stringent rules, the fig leaf is a little thinner than usual in this situation. It’s difficult to understand how “substantially lowered pricing, huge discounts, or any other similar promotions or enticing offers” over time may “restrict customer choice, increase prices, and prevent a fair playing field.”
The real driving force behind the Consumer Affairs Ministry’s new draught rules, which are presently out for public comment, might be found elsewhere. India is essentially muzzling the two leading US players under internet marketplaces’ guise of monitoring deceptive behavior. It’s also shifting the balance away from digital entrepreneurs, which are India’s most excellent chance for reconstructing the pandemic-ravaged economy. Amazon and Walmart are dominating, but only in a small part of the market. Overall, e-commerce accounts for just 4% of India’s $800 billion retail sectors.
Nonetheless, they allegedly have such a negative impact on the normal flow of products that they must be restrained by effectively ordering Amazon not to sell its Made in India Fire TV Sticks – a video streaming gadget – on its local e-commerce website. The same may be said about Walmart. Its physical wholesale operation in the nation may be unable to sell shirts on Flipkart, the online marketplace it purchased for $16 billion in 2018. Also, it is at this time that the American merchant is attempting to fit in. It intends to increase India’s exports to $10 billion by 2027.