You are here: Home » Economy & Policy » News
Business Standard

Govt asks Amazon, Flipkart to reveal top 5 sellers, capital structure

These questions were sent to them after several complaints were made to the department by traders body CAIT that e-commerce companies have been violating the foreign direct investment policy

Topics
e commerce | Amazon | Flipkart

Press Trust of India  |  New Delhi 

Flipkart amazon
Representative image

E-commerce giants and have been asked to disclose names of top five sellers on their platform, price list of goods of preferred vendors and the kind of support provided to sellers, according to sources.

The Department for Promotion of Industry and Internal Trade (DPIIT) in separate questionnaires to these companies have also asked them to share their capital structure, business model and inventory management system.

These questions were sent to them after several complaints were made to the department by traders body CAIT that e-commerce companies have been violating the foreign direct investment policy in garb of mega festive sales.

E-mail queries sent to and on the matter did not elicit any response.

The Confederation of All India Traders (CAIT) have time and again alleged that these companies follow unethical practices by indulging in predatory pricing.

The DPIIT has held several meetings separately with these companies and CAIT members.

Commerce and Industry Minister Piyush Goyal has stated that a probe is on with regard to allegations of predatory pricing against Wal-Mart-owned and

The detailed questionnaire sent to these companies also includes queries regarding total number of sellers listed on their platforms; list and share of controlled and uncontrolled sellers; distributor and retailer price list for preferred/controlled vendors and proportion of total sales from top five sellers.

They have also been asked to share details about association with payment gateways, sources said.

As per the current FDI policy, the government permits 100 per cent FDI in the marketplace model of e-commerce but not in inventory based model.

The online firms are also not allowed to influence directly or indirectly prices of goods to be sold on their platforms.

Both Amazon and Flipkart have maintained that they follow the current FDI policy.

The companies also strongly deny having indulged in deep discounting, saying brands offer those discounts.

According to consulting firm RedSeer, e-commerce companies such as Flipkart and Amazon could generate up to $6 billion or Rs 39,000 crore in sales this festive season.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, October 20 2019. 14:45 IST
RECOMMENDED FOR YOU
.