Tuesday, 7 October 2014

Discounts by e-commerce firms to badly affect offline market: CAIT

In a letter to Commerce and Industry Minister Nirmala Sitharaman, National General Secretary of Confederation of All India Traders (CAIT) Praveen Khandelwal has demanded for setting up of a regulatory authority for e-commerce business in India.
  
"We invoke your kind and immediate attention to ongoing sale offers conducted by various e-commerce companies since last three days...they are offering discounts from 20 percent to 70 percent, whereas traders are forced to sell same products in offline markets at a higher prices since their purchase price is on a very higher side," he said in his letter.
  
It is a serious matter as it is badly affecting the offline market.
  
"Such a practice if continued, may result into unavailability of products in offline market which will further result into a monopolistic situation which will be controlled and dominated by the e commerce retailers," he added.
  
He said it amounts to predatory pricing and the government should take necessary steps to control this.   

"In the present case, the traders are in a disadvantageous position and can not compete with online retailers," Khandelwal said.

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