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Indian traders ask government to investigate Amazon, impose daily cap on smartphone sales

A group of Indian traders has asked the government to investigate Amazon's business practices in the country and impose a daily cap on a single seller's online smartphone sales.

twitter-logoManas Tiwari | March 2, 2021 | Updated 12:02 IST
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AIMRA said in its letter that government should cap a single seller's daily smartphone sales on Amazon.

Highlights

  • Indian Traders write to PM Narendra Modi.
  • Traders accuse Amazon of wrong practices.
  • AIMRA seek investigation into Amazon's business practices.

A group of Indian traders has asked the government to investigate Amazon's business practices in the country and impose a daily cap on a single seller's online smartphone sales. The demand has been made by All India Mobile Retailers Association (AIMRA) representing 150,000 mobile phone stores across the country in a letter written to Prime Minister Narendra Modi. The letter cites an earlier report which claimed that Amazon has given preferential treatment to a small group of sellers for few years and has even used them to circumvent the country's strict foreign investment regulations.

"We were already aware of Amazon's thought process and strategy," the All India Mobile Retailers Association (AIMRA) wrote in the letter. The documents, the letter said, "have revealed that Amazon is doing business in India with the strategy of deftly dodging the regulators and politicians".

The body has asked the government to "suspend all Amazon activities in India" until an investigation is held in the matter. This isn't the first time when claims like these have been made. Earlier, the retailers have alleged that Amazon and Walmart's Flipkart flout federal regulations. These practices are claimed to be hurting small businesses.

"These companies were welcomed in India for the growth and development of the Indian traders but instead they have abused your vision of Digital India with total disregard to the sentiments behind it. Companies like Amazon and Flipkart, along with Chinese mobile brands, have colluded to erode the local economy and killed the small retail businesses," the letter reads.

AIMRA said in its letter that government should cap a single seller's daily smartphone sales on Amazon and Flipkart at Rs 5 lakhs. The group claims that the e-commerce platform has promoted sales through preferred sellers. It has asked the government to look into tie-ups between smartphone brands and sellers.

India Today Tech has reached out to Amazon for a reaction and the story will be updated once the e-commerce platform responds.

A major part of smartphones sales in India come from online channels. This is dominated by Amazon and Flipkart both of which have emerged as the preferred destinations for online purchases. Both these platforms also host frequent sales and give attractive discounts to boost sales.

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