Snapdeal supports Indian ecommerce booths, assures compatibility

Even India's new e-commerce barriers include global giants Amazon.com and Walmart's Flipkart, their local rival Snapdeal is delighted to take the step.

Since February 1, India has been restricting how e-commerce companies operate, including bans by selling them to companies that have their own capital, which results in Amazon and Flipkart claims.

Snapdeal's letter dated January 25, which supports Japan's SoftBank, has reported to the federal government that some companies are using "glare openings" on an inventory-based model of an e-commerce proxy.

It did not name any company in its letter, but some companies "high complaints" mentioned "how effectively this regulation is."

The government's move has become a threat to the fast-growing e-commerce market of Amazon and Flipkart, as they require revision of their existing business structures and increase the cost of compliance.

The rules came after India's small merchants complained that online retailers took control of their inventory using their control to create unfair friends markets, allowing them to sell some goods at low prices. Such events will be blocked within the framework of new policy.

"Times are permissible for compliance," said Snapdeal CEO Kunal Bahl, who wrote a letter to India's Trade Minister, who was seen by Reuters.

The company said it updated its technological processes and expects a "smooth transition" on February 1.

In contrast, Amazon and Walmart-owned Flipkart are striving to extend their term, saying they need more time to understand and implement policies.

Government sources have told Reuters that India will hardly agree to these demands, as Prime Minister Nensdrod Modi should support smaller merchants in the May elections.

Following a political announcement in December, the US government asked officials in New Delhi to invest in Amazon and Walmart, taking into account the "good relationship" between the two countries, reports Reuters.

"Every nation has the right to set policies, which is best for its economic and social needs," said Sindzhalal.

Amazon has pledged to invest in India for $ 5.5 billion (about 39,000 kilograms), while Walmart spent $ 16 billion last year for acquiring Flipkart as more and more Indians have gone online.

Morgan Stanley has estimated that by the end of the last government step, the e-commerce market in India will increase by 30 percent annually up to $ 200 billion in 10 years, up to 2027.

© Thomson Reuters 2019

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