The financial hit
DPIIT’s move to not extend the February 1 deadline has had an adverse affect on business as both Amazon India
have had to cut down their number of sellers by as much as 30 per cent. They have had to slash sales in almost 60 categories involving 45 million products.
Sources said while the two companies
had become compliant with the norms, sales had gone down by 25 to 30 per cent. Also backend logistics have taken a serious hit as the delivery of goods is now delayed by almost two days.
How will the sellers help
The online players are not just getting the sellers together to form a group of their own, but are also planning to seek help from industry chambers such as Ficci and CII to understand the ways of holding a meaningful dialogue with the government.
“The last few weeks have been quite trying for Amazon India
The firms have now realised that they need to come together to voice their concerns,” said a seller on these platforms and is part of the process of bringing vendors together.
Sources said that initially, some 1,500 sellers have been sent invites to join as members of the group. Already the two firms and the sellers are working towards securing the first set of meetings with DPIIT and Commerce Ministry. The meetings are expected in the next two weeks. “Apart from the big sellers, even a lot of smaller ones which rely on sales at Amazon and Flipkart have been asked to stop doing business on the platform altogether. We will voice their concerns too,” added the seller. Early last year when the draft e-commerce firm was announced, many in the industry had alleged it was tilted in favour of Indian traders.