E-Commerce Giant Flipkart Increases the Sellers Business By 5%

An E-commerce platform Flipkart has introduced a new layer of sellers, which is named gamma sellers. This third layer of sellers is advantageous to scale down the retailer dominance in the ecommerce platform. With this new policy, Flipkart aims to limit the share of every seller by 5%.   

As per the ET report, Flipkart has enrolled dozens of gamma sellers to be ready for all the government changes like foreign direct investments (FDI) laws in upcoming days along with the more strict restrictions on shares of sales.

This development has come after the Reuters report said that the US-based ecommerce platform name Amazon had exchanged the statement to be away with India's new rules for the market. As per the Press Note 2 news, the foreign e-commerce organization has prevented the seller from selling products. Besides, the organization has always clearly mentioned that there will be no special treatment given to large sellers.

However, in that case, Amazon has 33 different sellers, which are getting a third value of all the products they have sold on the official website. In 2019, the two sellers named Cloudtail and Appario had made up around 35% of revenue only in sales. Eventually, 35 Amazon sellers accounted for two-thirds of the overall sales. 

With this new revelation, the ecommerce platform was fully pocked against the Indian government as the government was looking to develop the FDI policy to raise the concern about giant platforms like Amazon and Flipkart. Yogesh Baweja, the government official added, India is looking forward to rearranging the FDI policy after getting pressure from some of the lobby groups like The Confederation of All India Traders (CAIT).

Not only CAIT but the Department for Promotion of Industry and Internal Trade have also sent a request to the Reserve Bank of India (RBI) and Enforcement Directorate. The DPIIT has requested to take a closer look against the e-commerce giants for committing a breach of PDI policy and Foreign Exchange Management Act (FEMA) rules.