Online sellers write to CCI alleging predatory pricing by Flipkart’s WS Retail and Amazon’s Cloudtail | The Economic Times
NEW DELHI: A group of online sellers has written to the Competition Commission of India alleging that Flipkart’s WS Retail and Amazon’s Cloudtail indulge in predatory pricing and discounting when selling their private label products, destroying the business of smaller rivals such as Snapdeal and online sellers.
The vendors also complained that WS Retail and Cloudtail sell branded products such as phones, electronics and fastmoving consumer goods at “rock bottom prices”.
The retailers of private labels AmazonBasics and Flipkart SmartBuy have been tendered special benefits that haven’t been disclosed publicly, the All India Online Vendors’ Association, a group of 2,000 sellers on various online platforms, contended in a letter to the CCI. The letter dated March 2, 2017, was reviewed by ET.
“Flipkart has always conducted its business with transparency, integrity and in full compliance of all applicable laws,” a company spokesperson said. “Our private label, Smart-Buy, has enjoyed rapid success primarily due to the superior quality of products. We’ve shared the success of the brand and empowered sellers by licensing it to them but only after they meet our rigorous quality checks. The popularity of SmartBuy and the increased business has led to tremendous gains for sellers.”
An Amazon India spokesperson said, “We are completely compliant with Indian laws and policies. Prices for products on the Amazon.in marketplace are determined by the sellers. We work hard and continually innovate to offer services such as FBA (Fulfilment by Amazon) and Easy Ship to sellers on our platform, that enables them to significantly lower their cost of selling and reducing defects as they sell to a nationwide customer base. Sellers pass on these savings as lower prices on the platform.”
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