POLICY says Profitable(huge) discounts to be stopped from scheduled Date to regulate Indian ecomm
Deep discounting policy is a practice to lower prices on e-commerce platforms like Amazon and Flipkart.
Consumers looking for good online deals may soon get unexpected deals, as the government introduces a policy that makes a strong case for upholding ‘Indian’ online enterprise. The policy aims at ensuring a level playing field to local businesses in a market where deep-pocketed foreign companies are investing heavily.
The policy, the first of its kind for the booming segment, has proposed legislation that will also cover food delivery sites such as Swiggy and Zomato, online service aggregators like UrbanClap as well as platforms offering financial and payment products such as Paytmand Policybazaar.
It has been proven that not more than 25% profit is concluded to all the Online sellers in this platform Flipkart and Amazon are both inventory based Models.This stakeholding policies are going to be Highlighted after 1st Feb 2019.
Why So All This???
When authorized sellers see a high volume of unauthorized sellers and products available online, they begin to question the company’s commitment to stopping unauthorized sales. This generally leads to complaints, decreased motivation and often even termination of their agreements with the company.
A company in this situation not only deal with these issues within its seller network. It must also confront the facts that: 1) product diversion directly harms companies’ bottom lines by reducing prices and diverting revenue, and 2) unauthorized sales also damage their brands and their reputation with customers.
In short, although the problem is obvious, the solution is not. Many companies are still struggling to identify effective tools to combat the problem of product diversion.
Therefore, quite simply, businesses must stop unauthorized sellers from selling their products online. This includes stopping any authorized distributors who are diverting the products.