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Why Trader’s body wants court to investigate Flipkart’s business model?

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Why Trader's body wants court to investigate Flipkart's business model

The Confederation of All India Traders (CAIT) is drawing out all the ways to stop the Walmart-Flipkart deal and how it has moved to the Delhi High Court against the e-commerce platform. Recently, the Trader’s body has filed a writ petition in the Delhi High Court to investigate the business model of the highest online retailer, Flipkart. The trade body handles 70 million small businesses, had filed a complaint against the ‘malpractices’ of Flipkart with the enforcement directorate (ED) a few months ago.

Praveen Khandelwal, who is the national secretary general of CAIT, stated that “Flipkart has consistently acted in violation of the rule where no seller on one platform can make sales more than 25% of the overall sales by ensuring that close to 80% of the sales on its platform comes through its preferred sellers”.

The new notice has been out just after the trade body petitioned the National Company Law Appellate Tribunal (NCLAT) against the approval given by the Walmart-Flipkart deal by the Competition Commission of India. In its request, the trader’s association stated that it has appealed for reversing the order of CCI. But CCI doesn’t give any chance to hear them.

On August 8, CCI approved the Walmart-Flipkart deal. In reply, Praveen Khandelwal stated, “It is most unfortunate that leaving aside the objections raised by CAIT in CCI, the Commission has approved the deal. Without giving any opportunity of hearing to CAIT, the CCI has flayed principle of natural justice. We deeply condemn such an attitude and will certainly move to Higher Court against the decision of CCI”.

Also Read: Techies says Narayan Murthy changed the face of IT Industry

The retail and trader groups firmly consider that Flipkart has been involved in acquisitive pricing and heavy discounting for some time and it will get worse due to Walmart-Flipkart deal.

Also, 10lakh+ traders had complained in July against the Walmart-Flipkart deal. The CAIT has also listed a petition in May 2018 with the antitrust regulator, opposing the deal, mentioning the reason that it would lead to acquisitive pricing, high discounts, among others.

Before this, the All India Online Vendors Association (AIOVA) that presents over 3,000+ online retailers, listed a petition with the CCI against the Flipkart for offering ‘preferential treatment’ to some retailers and thus allowing high discounts on its platform.

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L&T Technology Services wins $40M deal in Europe

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L&T Technology Services wins $40M deal in Europe

One of the most popular engineering services company L&T Technology Services Limited (LTTS) on Monday said that it had won a multi-year deal to provide digital content management services to a leading European technology company’s industrial products segment.

The contract is anticipated to operate for a period of 5 years with a total revenue potential of $40M, covering engineering content management (ECM) programs in the US and European regions.

Vadodara, Gujarat-headquartered LTTS said that it will utilize its centers in Europe, US, and India and would take complete responsibility and talent to organize content for all the existing and future product suites for the customer. This mainly consists of technical design specifications, diagnostic solutions for service engineers and product training for customers & engineers, in this way constantly supporting the whole ECM cycle for product conceptualization to develop digital content platforms.

Also Read: HP plans entry of refurbished computers market in India

Keshab Panda, who is the CEO & Managing Director of LTTS said, “With engineering content becoming one of the cornerstones of digital transformation, this deal win highlights LTTS’ consulting capabilities to key customers in the US and European markets.”

He further added, “LTTS will provide expertise and support in building content management capabilities with the help of new technologies such as AI & Virtual Reality, thereby enhancing the overall customer experience.”

About LTTS

L&T Technology Services (LTTS) is basically a subsidiary of Larson & Toubro (L&T). It is a research and development engineering firm whose offices are located in Edison, New Jersey, and Munich. Apart from this, it also consists of a subsidiary Esencia which is located in San Jose California. From 2016, it is being traded in minimum two stock exchanges, mainly National Stock Exchange and Bombay Stock Exchange. LTTS currently consists of 13,000 employees who are spread across 16 design centers and 42 innovation labs globally.

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Amazon drops fees and storage charges before festive season

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Amazon drops fees and storage charges before festive season

E-Commerce giant Amazon India has dropped the sells fees in five categories and also reduced storage charges to support vendors to stock more products before the arrival of the festive season sales in October 2018.

The firm has decreased the commission sellers have to pay by upto 2% in categories like apparel, and home and electronic accessories, which Amazon thinks to be widely popular during the festive season.

Amazon India has also dropped the closing fee for sellers who utilize its fulfillment centres to store products. Moreover, to allow more sellers to place their inventory close to their customers, Amazon India has dropped the rates of its ‘Go Local’ Scheme by minimum 20%.

Also Read: UberEats partners with TATA AIG to provide insurance to delivery fleet

All the latest changes are focused to support sellers to store their inventory close to the customers, which helps in faster deliveries. Also, a decrease in the seller fees in categories like apparel clearly means that vendors can stock more products and provide a huge collection.

Gopal Pillai, who is the general manager of seller series at Amazon India, said, “These fee changes should reduce the cost of operation for the sellers so that they can offer a wide range of products at competitive prices to the customers.” He further said, “Across the board, we are looking at everything from the seller’s perspective and passing on our benefits of scale and leverage to the seller.”

Presently, there are more than 3,80,000 sellers on Amazon providing more than 170 million products on the E-Commerce website. Amazon India is adding 3,000 sellers every week as the company reaches closer to the most awaited sale in October 2018.

Read More: Swedish Group Atlas Copco completed 60 years at India

About Amazon India

Amazon is one of the biggest E-Commerce giant giving a tough competition to Flipkart. The company conducts flagship sale 2 times a year. Amazon’s flagship sale is known as “Amazon Great Indian Festival.” In this sale, Amazon India provides huge discounts in the wide range of products such as clothing, technology, books, beauty products, kitchen appliances, etc.

Until now, the official dates about the flagship sale are not declared by Amazon India.

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Small Vendors request CCI to keep Flipkart’s preferred vendors away on Big Billion Day

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Small Vendors request CCI to keep Flipkart's preferred vendors away on Big Billion Day

In the last few years, small online vendors all the country are facing troubles due to the e-commerce giants like Flipkart and Amazon. A large group of online sellers has reached to the regulatory body which handles fair trade of items. All the sellers are requesting the body to restrict some large sellers on e-commerce platform Flipkart during the Big Billion Day, asserting that Flipkart has great influence on pricing due to these vendors.

All India Online Vendors Association (AIOVA) which consists of 3,500+ vendors selling on the e-commerce platforms has written to the Competition Commission of Indiaam (CCI), asserting that the country’s giant e-commerce platforms tampers with pricing and engages in heavy discounts via its preferred sellers like Retail Net and Omnitech Retail.

E-commerce platforms in India don’t have permission to control pricing of products sold on their platform.

Also Read: NetApp chooses 6-Startups for its ‘NetApp Excellerator’ programme

Flipkart has raised heavy funds just after its collaboration with the US retail firm Walmart. Hence, it is expected that Flipkart will engage in heavy discounting war with its close rival Amazon this festive season. As per details, Flipkart’s Big Billion Day (BBD) is scheduled for next month. Small vendors in their petition to CCI stated that Flipkart offers a special treatment to its preferred sellers by reducing their cost of sales like advertising and logistics expenses.

AIOVA petition stated, “In the case of a normal seller, to feature on top of the search results, they have to pay sponsor fees or earn better reviews and ratings. This involves some time, effort and capital from the manufacturer/seller… (while these) are doled out for free in a discriminatory manner to the preferred brands such as MarQ, Smartbuy.”

Read More: Amazon India plans to expand Prime with Offline Benefits

Small vendors have earlier also complaint about the Flipkart for providing preferential treatment to some large vendors, which in turn results in unfair competition for third-party vendors on these platforms. They have written petition to some of the other government bodies along with CCI.

Flipkart is very much furious with its in-house brand business just before the Big Billion Day Sale. It anticipates 80% year-on-year increase in the gross merchandise value (GMV) and total units sold during the event.

Flipkart is criticized by various small vendors and online sellers for its acquisition by Walmart. Confederation of All India Traders (CAIT), which consists of 70 million traders, has petitioned the National Company Law Appellate Tribunal (NCLAT) against CCI’s approval for the Walmart-Flipkart deal.

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