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Published
Jul 20, 2021
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Indian Sellers Collective urges Cloudtail's Narayana Murthy to split from Amazon

Published
Jul 20, 2021

Non-government affiliated trade association the Indian Sellers Collective has urged Amazon seller Cloudtail India’s owner Narayana Murthy to cut ties with Amazon India in an open letter.

Amazon India's biggest seller is Cloudtail - Shutterstock

 
The Indian Sellers Association stated in its letter that Cloudtail and Amazon’s relationship goes against foreign direct investment regulations in India, ET Bureau reported. Alleging that Amazon uses Cloudtail as a front for selling goods on its e-commerce store, the Indian Sellers Association has accused Murthy of sacrificing the livelihoods of Indian traders for his own profit. The organisation cites the fact that a number of Cloudtail board members are former Amazon employees as evidence.  
 
“Foreign retailers operating e-commerce marketplaces in India have been finding creative routes to flout India's retail FDI laws,” said the Swadeshi Jagaran Manch’s national co-convenor Ashwani Mahajan, Indo-Asian News Service reported.

“This is a cause of worry among the Indian seller community, necessitating a need for continuous strengthening of the policies governing Indian e-commerce. Amazon India, through arrangements with companies like N.R. Narayana Murthy's Cloudtail is indulging in predatory pricing and discounting thereby destroying the business of offline retailers and small sellers.”
 
Numerous traders’ bodies have criticised Amazon’s business practices in India, with the Confederation of All India Traders being arguably the most vocal, holding protests and calling for boycotts. Other organisations which have voiced their displeasure over Murthy’s business practices include the Federation of All India Distributors Associations and the All India Consumer Products Distributors Federation, among others.   

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