Brands Asked To Clarify On Discounts Offered On Amazon, Flipkart

NEW DELHI || In furtherance of the meeting held between Confederation of All India Traders (CAIT) and Amazon & Flipkart on October 11 at Udyog Bhawan, New Delhi, the CAIT on Monday sent communications to all premier brands whose products are being sold on e-commerce portals of both Amazon & Flipkart asking them to clarify whether deep discounts on various products on Amazon & Flipkart are being offered by them as claimed by both in the said meeting.

CAIT National President B.C.Bhartia & Secretary General Praveen Khandelwal in communication to Brands said that on question of offering deep discounts on various products on their respective portals, both Amazon & Flipkart categorically said that the portals are not offering any discounts and it is various brands which are offering such deep discounts and Amazon & Flipkart have no role in discounts on their portals.

In another question, both Amazon & Flipkart said that it is the brands which give their exclusive products to sellers and they have no role on it. This is their official statement given in an official meeting convened by the Ministry of Commerce-add both leaders.

Both said that such a statement by Amazon & Flipkart which reflects the dual policy of the Brands by having different sets of price and discounts structure both for offline & online trade which amounts to discrimination and leads to unfair business practices not allowed under business norms.

Elaborating the crucial role of traders, they further said that traders across Country are working with Brands since decades have every faith & trust on Brands as far as their price policy is concerned. However, since the responsibility of discounts has been shifted on Brands in a most authorised manner and in a meeting convened by the Government, the CAIT take a serious note of it.

Asking a clarification from Brands, the CAIT said to each brand that “since your brand is also being sold on Amazon/ Flipkart e-commerce portals, we shall be grateful to you to clarify whether discounts offered on these portals are offered by you? This is necessary as we will take up this matter further with the top leadership of the Government”.

The CAIT also expressed its intention to convene a Conference of Brands in New Delhi and have requested them to confirm the participation of your esteemed organisation.

CAIT said that crores of traders across Country have a major contribution in present valuation of the Brands by rendering yeomen services and putting huge investments by delivering goods in every nook & corner of the Country since decades incapacity of Distributors, Wholesalers, Semi-Wholesalers, Retailers and in various capacities and have built a strong supply chain in the Country which is World’s largest supply.

The CAIT further said that “being apex body of traders of the Country representing about 7 crore traders through more than 40 thousands trade associations across Country, we are deeply concerned on this very important and critical issue which has created an adverse impact on offline business throughout the Country and we are determined to take this issue to its logical conclusion through whatever lawful course available with us. There fore, your clarification on deep discounting and exclusivity assumes much significance to air out the confusion being raised by the official statement of both Amazon & Flipkart

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