Wary Amazon holds app-only sale, its first since the FDI implementation

Editor | Sep 10, 2020

Amazon is conducting a fashion sale running between 17th to 22nd June. The sale will be an app exclusive event. This sale is a hallmark, as it is the first sale since the new FDI rules that put a stopper on certain common practises in the ecommerce industry. Thanks to the new rules, marketplaces are not allowed to influence online sellers to modify their pricing.

Buyers can avail of products priced at Re.1 at the ‘Amazon Fashion Bash’ by participating in a contest titled Treasure Hunt, which will be held daily between 11.00 a.m. and 2.00 p.m. The sale boasts of leading brands including Timex, Jockey, Arrow, Crocs, Levis, Provogue and Sparx.

Is Treasure Hunt an attempt to offer discounts within the rules?

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Circumventing the rules

Marketplaces have been put in a fix courtesy the new FDI ruling. While earlier sales used to be a regular feature, marketplaces have been forced to cut down on the same. Recently, Indian ecommerce giant Flipkart held a sale. Last month, the company held its Big Billion Day sale. To play by the rules, the company requested its sellers to reduce their product prices and take a cut on their profits.

The DIPP’s new ruling made it possible for foreign investment in online marketplaces, but come at a price for the marketplaces. The rules prohibit a single seller on any marketplace from having majority of sales. This has caused companies like Amazon and Flipkart to think of alternatives to hold sales and hand out discounts.

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Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business. 

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