Ecommerce, News

Traders Move Against Ecommerce Portals for Selling Below Purchase Price

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.”

Also Read: Amazon in Trouble: Amazon Bangalore Warehouse for FBA Seized by Tax Authorities

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).

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  1. 1

    Amazon, Flipkart, Snapdeal and many online sellers are offering discounts on sellers listed price and this is how they are undercutting and many times they are also selling products below the manufacturing cost. The recent example of Flipkart Big Billion Day in which they sold the samsung tablets of rs.14000.00 for rs.1400.00 . No sellers will sell at rs.1400.00 and take loss. basically the sellers were selling at rs.11000.00 and flipkart was offering the rest as discount from their pocket.

    These FOREIGN FUNDED ONLINE RETAILERS ARE UNETHICAL and using the money power to capture the market. That is affecting the small physical traders a run for their survival.

    -Hari Rastogi
    Activist WWA(We Will Act)

    • 2

      Your traders and your trader body do nothing when your members sell cheap made in china crap which has no warranty. Create artificial shortage of products and sell it on premium rates because many of my friends bought phones at premium rate and paid more then actual cost. Your union never try to stop such business practice. Why? Because your members getting more money and profits out of that demand. No service or replacement of product from your side and instead of that what we get is mfg’s service center address where we need to go personally and spend our money and time. These online portals give 30 days money back or replacement time but None of the shopkeeper do this. shopkeeper providing no services at all . They just take money against the sell they made and customer gets nothing in extra. As a customer i ll prefer to buy online which gives me an extra edge over my buying.

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