IT and telecom product traders’ association ADCTA (All Delhi Computer Traders Association) advised its dealers/distributors/suppliers to stop supplying goods to online companies across India if they sell any product below the price at which they have originally purchased it.
“We are a marketplace. We do not determine prices. Our sellers decide what to sell on our platform and at what price points,” an Amazon India spokesperson said in a statement, as per NDTV Gadgets report.
A Flipkart spokesperson said, “The prices on our site are decided by our sellers. As a marketplace, we simply facilitate a platform where the sellers can connect with potential customers.”
“We are channel partners. Almost all sales in retail market happens through us. We are aware of landing price of product at customs. ADCTA has written to government agencies to investigate in the matter,” said Swarn Singh, Joint Secretary of ADCTA.
Direct selling firms like Amway, Tupperware and Oriflame have also issued a notice to the e-commerce sites to stop selling their products as there are no sales through traditional retail channels.
“The sale of our products on these online platforms not only diverts sales from our distributors but also undermines the essence of direct selling as a proposition,” Vivek Katoch, director – corporate affairs at Oriflame, maker of cosmetics and personal grooming products, told ET.
“We have written to many of the e-commerce sites informing them about the disruption they are causing to our distributors and sales force and requested them to stop selling our products on their websites,” Tupperware CMO Chandan Dang said.
“Our code of conduct explicitly states that unauthorised Internet selling violates agreements with Amway and our rules department regularly monitors this activity to prevent prohibited selling.” stated Amway business owners (ABOs).
The firms have also written to the government to issue clear guidelines on this matter through the Indian Direct Sellers Association (IDSA).