Amazon group company Amazon Export Sales LLC has debuted as a seller on its India site in quite a few categories like as fashion, lifestyle and electronics between others on its India site with the newly launched Global Store.
But the Amazon India denied that this violated Foreign Direct Investment (FDI) standards as the unit was registered overseas and all transactions would be concluded outside the country.
An Amazon India spokesperson said, “Amazon.in enables domestic and international sellers to list their products for Indian customers. Amazon Exports Sales LLC is also a listed seller on Amazon.in
Amazon Exports Sales LLC is an exporter of all products and therefore the mention of custom duties in their listings. Amazon India has a high bar for obedience with laws of the land and Amazon.in is in obedience with all applicable laws.”
The rules specify that ecommerce companies with the overseas investment should utility as technology marketplaces that connect the buyers and sellers of the products. They cannot sell any product directly.
A group of 1000 online seller, the All India Online Vendors Association (AIOVA) said, “when a seller is owned by the marketplace or is a group company, pricing is bound to be unfair.”
AIOVA spokesperson asked the question, “Is the seller owned by Amazon India paying charges like commission, advertising and promotional charges at the same rate as others?”
Amazon spokesperson replied to his question that the company is committed to creating level playing field to encourage healthy competition. The company have many different types of seller on our marketplace…Each group of the seller is treated with equal parity.
The Global Store sells products not available in India. But he said that, the Global Store type of functionality simply allows a listing service in India for foreign sellers therefore the underlying transaction is no different.
But, few products on the Global Store listed under Amazon Export Sales that are also sold by Indian sellers like Cloudtail, which is part owned by Amazon India, but it is sold at different prices.
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