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FISME alleges that Amazon, Flipkart imports 80 percent of goods sold

Published
today Jan 15, 2020
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The Federation of Indian Micro and Small & Medium Enterprises (FISME) has made a scathing attack at e-commerce majors like Amazon and Flipkart, stating their business model is hurting the local industry. 
 

FISME alleges that Amazon, Flipkart imports 80 percent of goods sold - Flipkart- Facebook


FISME claims that e-commerce biggies import almost 80 percent of the goods sold on their platform and create jobs only in the logistics sector like delivery boys.
 
"Neither manufacturers nor traders are getting any benefit from the business models of Amazon and Flipkart because they largely import their products from China and Korea and sell here. Nearly 80 percent of their products are imported," Anil Bhardwaj, secretary general of FISME, told IANS.

“The global e-commerce players generally source and sell products through their own preferred suppliers and as a result, a large number of local manufacturers and traders get crowded out. Even if they buy products from local suppliers the commission charged is very high," Bhardwaj added.
 
Interestingly, Amazon India had got into a partnership with FISME in 2018 to enable the Micro, Small & Medium Enterprises (MSMEs) to sell their products in domestic and international markets through its platform.
 
Traders and small enterprises from across India are mounting the pressure on the government to probe the deep discounting and unfair practices of e-commerce firms. Earlier, Delhi-based Confederation of All India Traders (CAIT) had launched a countrywide protest against the e-commerce companies.
 
With protests rising, the Competition Commission of India (CCI) has ordered a probe into the business operations of both Amazon and Flipkart against allegations made by trade bodies and federations.

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