New Rules For Ecommerce Create Problems For Flipkart And Amazon

New Rules For Ecommerce Create Problems For Flipkart And Amazon

Technology

Many e-commerce giants such as Amazon and Walmart have been facing some problems in the recent days in one of their most valuable markets, which is none other than India. These problems are being faced by the companies mainly because of the changes in the rules made by the local government when it comes to the sale of the goods on the foreign platforms, along with the way of doing business in the country. Under these new laws, the companies which are foreign-owned, operating in the e-commerce sector, are not allowed to sell their products directly to the customers in the region.

As per the reports, the companies would only be able to provide a marketplace which would be acting as one IT platform and it would only be able to serve as a facilitator between the seller and the buyer. To bypass this particular restriction, both Amazon and Flipkart, which sold the majority stake to the company Walmart in 2018, have now acquired the stakes in many of the third-party sellers in the country now. The company Amazon now owns the stakes in the parent companies of Appario Retail along with Cloudtail India, and Flipkart on the other hand owns the stakes in WS Retail, which is the largest seller on the company’s platform.

Both the companies are now trying to battle these new policies with different strategies in order to survive and prosper in the coming days, as these policies will be having some serious impact on the way of doing business, and many products would be disappearing from the platforms of the companies, which makes it even worse for them. The companies are now exploring some alternatives and they have also been talking with the government officials in an attempt to come to a satisfactory conclusion and only time will tell how things take their shape.