No more heavy discounts on online e-commerce sites. Yes you heard it right. We are sorry to break this news to you.
The dream run of consumers getting heavy huge discounts on their favorite brands, products from e-commerce giants is all set to come to an end.
With complaints from retailers whose business has come to an end with giant e-commerce attracting consumers, the government of India has announced changes to foreign direct investment policy for e-commerce industry having giant companies like Amazon and Flipkart.
These two giants including Wallmart who has recently acquired Flipkart for a whopping $16 billion are likely to be hit with the new regulations.
These e-commerce giants will have to alter their business model to get hold of more customers and follow the new guidelines which will apparently bring down sales.
According to a senior government official these changes were brought in as “there had been multiple complaints against these platforms violating these norms to offer discounts through their group entities in logistics and wholesale.”
Hence, there could be fewer discounts on offer, the senior official explained ET.
With the new guidelines for these e-commerce companies, there will be no discrimination amongst vendors and will also lead to lesser discounts as certain vendors offer discounts because of their association with Amazon or Flipkart.