The Confederation of All India Traders (CAIT) in a communication sent to Union Commerce Minister Shri Piyush Goyal today urged to initiate a audit into business model of both Amazon & Flipkart beside convening a meeting of Brand Companies to know are they really offering deep discounts on e commerce portals of both Amazon & Flipkart as claimed by officials of both Companies in a meeting held on 11th October at Udyog Bhawan with CAIT delegation which was convened by DPIIT under the directions of Shri Piyush Goyal..


In its communication to Shri Goyal, the CAIT said that both Amazon & Flipkart in a clandestine manner refuted the issues raised by it even after showing relevant evidences. For offering huge discounts on their portals, they categorically said that it is the Brands which are offering discounts and they have no role in it. To other concerns, they did not own the responsibility citing their own explanations based on several flimsy grounds.


CAIT National President Mr. B.C.Bhartia & Secretary General Mr. Praveen Khandelwal said that it is most interesting that these Companies are incurring heavy losses since last more than 5 years and still they are continuing their business model with organising several sales each year. We apprehend that in order to escalate the value of the Companies, the respective investors are funding their losses which enables them to offer huge discounts. It appears that its not a business model but a valuation game of investors who are hugely benefitted when they exit their investment at a time when the valuation of the Company becomes too high-said trade leaders.


Both Mr. Bhartia & Mr. Khandelwal said tha traders across Country are deeply crying with their business model which is offering unbelievable discounts. The worst affected sectors are Mobile, FMCG, Garments, Gifts, Electronics & Electrical Items etc.Because of their predatory pricing and deep discounting, thousands of Mobile shops are virtually on the verge of closure and the same situation is being confronted by other sectors.



Both trade leaders said that traders across Country have deeply appreciated  landmark statement of Shri Goyal that ” no predatory pricing and deep discounting will be allowed by the Government” and as such the CAIT has sought personal intervention of Shri Goyal in the matter and bring it to its logical conclusion in order to create an even level playing field in the Country.The CAIT has urged Mr. Goyal that since both Amazon & Flipkart have made Brands responsible for offering deep discounts, the Government should convene an immediate meeting with Brands to know the real truth. Further, the business model of both Companies should be audited by the Government to arrive at real conclusion.


“The 7 crore small business in India is world’s largest supply chain rendering delivery of the goods in even far flung areas and making handsome contribution to national exchequer and after agriculture it is the second largest sector providing employment in the Country. Therefore, there is an urgent need to protect the genuine interests of the trading community. We do not fear competition but for that an even level playing flied is all the more necessary”-added CAIT.


The CAIT has firmly said that traders are not opposed to E Commerce since it is the future mode of business and has great prospects. It has already initiated a campaign to create e-stores of traders in the Country and connecting them to e commerce market beside having their physical stores and would be seeking assistance of the Government.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button