Amazon removes many goods from India as new e-commerce rules

On Friday, the rules of e-commerce in India triggered a widespread crackdown on Amazon.com forcing it to pick up a variety of products from India, including Echo Speakers, Batteries, and Floor Purifiers.

The two sources, who directly understood the issue, began shipping goods on Amazon India on Thursday, as it started up to midnight deadline according to revised norms.

"The company has no alternative, they fulfill compliance requirements ... customers suffer," says one of the sources.

In December, India changed the rules of foreign direct investment for the e-commerce sector, which not only attracted large bets from Amazon.com, but also Walmart's favorite games that last year bought mostly the stockholder. player Flipkart.

In order to improve the rules of new e-commerce in India, online retailers sell products to companies that have their own equity and deal with merchants exclusively on their platforms.

On Thursday, many American merchandise sold by traders on Amazon's indirect share is no longer available on Amazon India's website.

Shopper & # 39; s Stop clothing from India's store chains was no longer available, as Amazon owns 5% of the company.

Amazon's own series of Echo speakers, Presto branded home cleaning products and other Amazon Basics products, such as chargers and batteries, also disappeared from the site.

Both Amazon and Walmart have lobbied against the recent rules and provoked their delay, but India announced late at night that it was the deadline.

The situation in India is "a bit fluid", but the country remains a good long-term opportunity, Amazon Chief Financial Officer Brian Olsawski said in a telephone conversation with journalists after the fourth quarter profit statement.

The main goal of the company is to reduce the rules of new e-commerce for customers and sellers.

Growing driver
The US government has also called on India to support two American retail trade rebates, Reuters reports.

Both companies are greatly growing in India with a major growth driver. Amazon has pledged $ 5.5 billion, and Walmart spent $ 16 billion last year at Flipkart.

However, the administration of Prime Minister Nendreddi Modi seems to be pushing ahead with smaller merchants in the May elections.

Many smaller traders say that e-commerce giants use their purchasing power and monitor inventory of affiliate suppliers to create an unfamiliar market where they can offer discounts on some products. Such measures will be prohibited within the framework of new policy.

Industry sources note that the new rules will have to make big electronic vendors change their business structures and increase the cost of compliance.

Amazon India has told Reuters that "loyal to all land laws," adding that all vendors make their own independent decisions on what to display and when.

Vendors will be suspended for exclusive deals, reports two sources.

It is unclear how much time will be required for the disorder. Amazon In India, Echo spokespersons will hear a message: "We do not know when this material will return to stock."

The effect of changes in Flipcard is unclear. He did not immediately respond to the request for comment.

In a January statement from the Indian Industry Board, Executive Director Kalyan Krishmormi said that rules require Philip to evaluate "all business elements" and risk "significant customer failures."

© Thomson Reuters 2019

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