CAIT urges Indian government to ban Amazon India

Recently, Reuters released an exclusive report, revealing some of Amazon India's actions. The documents disclosed in the report showed that Amazon India holds a controlling stake in two platform seller companies through indirect shareholding, and treats sellers on the platform differently, giving additional benefits and support to Amazon India's stakeholder sellers.

In addition, Amazon India has also cooperated with large technology and software companies such as Apple, allowing these companies to control the smartphone product market on the platform and form a monopoly.

Data shows that although there are hundreds of thousands of sellers on the platform, most of the platform's revenue is controlled by a very small number of top sellers. The top sellers backed by Amazon India are forming a monopoly, severely squeezing the living space of small and medium-sized sellers on the platform.

In addition to the online platform, Amazon India’s marketing strategy has also had a great impact on India’s offline market, and the survival space of physical stores such as mobile phones and clothing in India has also been squeezed.

Amazon's actions have seriously damaged the interests of small and medium-sized sellers on the platform and small and medium-sized enterprises in India. These actions are also not in line with the principle of fair competition. Therefore, after Reuters' exclusive report was released, many parties in India expressed their dissatisfaction with Amazon India.

According to Indian media reports, India's CAIT (Confederation of Indian Traders) urged the Indian government to ban Amazon's portal in India (Amazon.in e-commerce platform) and prohibit Amazon's operations in India.

The development of small and medium-sized enterprises is the focus of the Indian government in 2021. In order to support the development of small and medium-sized enterprises and promote the rapid recovery of the economy, the Indian government must create a better business development environment to promote fair and just business competition.

Therefore, although the Indian government has not yet made a statement, Amazon India is bound to be subject to stricter supervision by the Indian government. The Indian government may even respond to domestic calls and ban Amazon India. Either way, sellers on the platform will be greatly affected. Sellers on Amazon India should pay attention to relevant developments in a timely manner and make countermeasures.

Cross-border e-commerce

E-commerce platform

E-commerce market