×
340
Fashion Jobs
NIKE
India Logistics Partner Management Manager
Permanent · Bengaluru
DIAMOND RETAIL INDIA
Hiring For Sales Officer/Area Sales Manager (Jharkhand All District)
Permanent · Chatra
DIAMOND RETAIL INDIA
Hiring For Sales Officer/Area Sales Manager /Sales Manager (up)
Permanent · Mirzapur
FINO PAYMENTS BANK
Territory Sales Manager - Merchant & Distributor Onboarding - wb
Permanent · Cooch Behar
SUGUNA FOODS PRIVATE LIMITED
Area Sales Manager-Animal Health Products Sales (Bangalore)
Permanent · Bengaluru
MUTHOOT FINCORP LTD
Area Manager - Chennai
Permanent · Chennai
SUGUNA FOODS PRIVATE LIMITED
Area Sales Manager-Animal Health Products Sales (Bangalore)
Permanent · Bengaluru
DIAMOND RETAIL INDIA
Hiring For Sales Officer/Area Sales Manager/Sales Manager (Bihar)
Permanent · Katihar
VIJAY SYSTEMS ENGINEERS PVT LTD ( UMBERGOAN)
Production Manager
Permanent · Vapi
VIDVAS HR SOLUTIONS PRIVATE LIMITED
sr Manager - Production . Only Leather Bags Exp - Chennai
Permanent · Chennai
SHREE SADGURU MASALA & SPICES IND PVT LTD
Regional Sales Manager
Permanent · Navi Mumbai
MAGNATEK ENTERPRISES
Looking For Area Sales Manager
Permanent · Chennai
BANDHAN LIFE SCIENCE PRIVATE LIMITED
Area Sales Manager
Permanent · Kolkata
WINGS PHARMACEUTICALS
Area Sales Manager - Generic Division
Permanent · Ludhiana
FIRST SOLUTION
Agency Development Manager/Recruitment Development Manager(Insurance)
Permanent · Pune
NCL INDUSTRIES LIMITED (BISON PANEL)
Area Sales Manager - Hyderabad (Boards Division)
Permanent · Hyderabad
LN GLOBAL CAREER SERVICES LLP
Required Regional Sales Manager For Pharmaceutical Company
Permanent · Chennai
LN GLOBAL CAREER SERVICES LLP
Required Zonal Sales Manager For Pharmaceutical Company
Permanent · Chennai
LEVI'S
Group Product Manager
Permanent · Bengaluru
AVENUE SUPERMARTS LIMITED
Excellent Opportunity With Dmart _ Production Managers
Permanent · Chikmagalur
ENOAH I SOLUTION INDIA PRIVATE LIMITED
Area Sales Manager
Permanent · Bengaluru
KISHOR EXPORTS
Garment Technician
Permanent · Agra
By
Reuters
Published
Feb 4, 2019
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

New e-commerce rules jolt Amazon.com in India as products vanish

By
Reuters
Published
Feb 4, 2019

India’s revised e-commerce rules caused widespread disruption on Amazon’s India website when they kicked in on Friday, forcing the company to take down its key grocery service and remove a wide range of products such as sunglasses and floor cleaners.

Photo: Reuters


The products began to disappear from Amazon India late on Thursday as it began complying with the regulations before a midnight deadline, two sources with direct knowledge of the matter told Reuters.

In December, India modified foreign direct investment rules for its burgeoning e-commerce sector, which has drawn major bets from not only Amazon.com but also the likes of Walmart Inc, which last year bought a majority stake in homegrown e-commerce player Flipkart.

India’s new e-commerce investment rules bar online retailers from selling products via vendors in which they have an equity interest, and also from making deals with sellers to sell exclusively on their platforms.

Numerous items sold by Amazon vendors such as Cloudtail, in which Amazon holds an indirect equity stake, were no longer available on its India site. Amazon Pantry, a grocery service primarily managed by company affiliates, was also discontinued, though grocery products could be purchased individually.

“Pantry is completely empty, how I am suppose to grocery shop,” Twitter user Pamela wrote on the social network. “Whatever government rules are, (I) don’t care, you guys fix it, I need to shop.”

Amazon, which saw record sales and profit during the holiday season, has forecast first-quarter sales below Wall Street estimates due to the uncertainty in India - one of its key growth markets.

The situation in India is “a bit fluid right now,” but the country remains a good long-term opportunity, Amazon Chief Financial Officer Brian Olsavsky said. The company’s main goal was to minimize the impact of the new rules on customers and sellers, he added.

Flipkart CEO Kalyan Krishnamurthy warned last month that it faced “significant customer disruption” if the new rules were implemented from Feb. 1. On Friday, the company said it was disappointed the government acted in “haste”, but assured compliance.

“We are committed to doing everything we can to be compliant with the new rules,” Flipkart India executive Rajneesh Kumar said in a statement, without explaining how the website was impacted.

POLITICS, INVESTOR SETBACK

The new policy was announced after complaints from small Indian traders who said the e-commerce giants used their control over inventory from affiliated vendors to create an unfair marketplace where they could offer discounts. Such arrangements will now be barred.

Both Amazon and Walmart unsuccessfully lobbied against the latest rules and pushed for a delay in their implementation. The U.S. government too urged India to protect the investments of the two retailers, Reuters reported last week.

But Indian Prime Minister Narendra Modi’s administration stood firm as the move was widely seen as one to appease small traders in the run-up to a general election due by May.

Industry sources have said the new rules will dent foreign investor sentiment and force the big online retailers to change their business structures, raising compliance costs.

“The company has no choice as they are fulfilling a compliance requirement, the customers will suffer,” said one of the sources. “It is very upsetting for foreign investors.”

Both companies have bet heavily on India being a big growth driver: Amazon has committed to investing $5.5 billion there, while Walmart last year spent $16 billion on Flipkart.

Amazon’s own range of Presto-branded home cleaning goods and other Amazon Basics products such as chargers and batteries vanished from its website late on Thursday.

Clothing from Indian department store chain Shopper’s Stop was also no longer available, as Amazon owns 5 percent of the company.

The Confederation of All India Traders (CAIT), which supported tougher scrutiny of large e-commerce players, said the removal of products by Amazon was a step in the “right direction”.

Exclusive deals with sellers, in compliance with the revised rules, will also be discontinued on Amazon India, the two sources said.

It was unclear how long the disruption will last. On Friday, Amazon’s own range of Echo smart speakers, which were earlier removed as they were sold by a company affiliate, returned for sale via other sellers on the platform.

However, buyers would now need to wait for up to 36 days to get some of the speakers delivered even under Amazon’s fast-delivery Prime service, which often delivers goods in a day or two.

© Thomson Reuters 2021 All rights reserved.