Ecommerce: No Private Labels, Exclusive Deals, Deep Discounts On E-commerce Sites
this one is a good read.
this one is a good read.
-
Amazon Deals - ToS - Like us?
Regulations for Online Stores (Draft National e-Commerce Policy)
- Thread starter Sushubh
- Start date
- Replies 93
- Views 13,405
of course... there is always the ambani angle to this development.
Reliance Retail: Mukesh Ambani's Reliance Retail takes fight to Flipkart, Amazon doorsteps
Reliance Retail: Mukesh Ambani's Reliance Retail takes fight to Flipkart, Amazon doorsteps
This policy is much needed. All these big marketplace companies with FDI used to flout rules by maintaining inventory and selling below cost of many mid size retailers. Thus killing the market. This decision is good for everyone in the long term.
While small sellers were fighting for this from years, who really helped is Mota Bhai. He has jumped into game now and all VC funded companies will literally bleed. None can ever fight Mota Bhai and win.
While small sellers were fighting for this from years, who really helped is Mota Bhai. He has jumped into game now and all VC funded companies will literally bleed. None can ever fight Mota Bhai and win.
Suppose you are a manufacturer. You spend a lot of time designing, prototyping and manufacturing products, take feedback from market and fine tune them. You use Amazon or Flipkart as your sales channel.
What these companies do is implement a use and throw policy. They will study your products as they grow in ranking. Once it reaches a particular volume, they will call you and force you to shift for their Fulfillment service. We will be asked to maintain inventory in multiple warehouses of theirs which is expensive due to the fees involved and the fact that the inventory is locked into a single platform. Or, their subsidiaries will call you saying we want to procure in bulk and give us 3 months credit. If you give them in bulk, they will start selling at cost since these anchor sellers pay minimum fees (free or 2-3% max, whereas we pay ~40-50% of selling price). This essentially hurts your other retail channels.
During all these drama, they will continue to observe your products and sales. And one fine day they will introduce exactly same design,same quality products using their private labels. Since they source in really large quantities from big manufacturers and sell at cost without paying commission, we the original seller who spent time and money to make the product will be out of game in a snap. They throttle traffic, sales ranks, put fake negative reviews etc etc and kill our business. Once competition is eliminated, they will Jack up prices and make money.
That's the reason why we are against marketplaces with FDI maintaining inventory. It has to be either inventory based store or pure marketplace where they don't have private label or maintain inventory through proxies.
What these companies do is implement a use and throw policy. They will study your products as they grow in ranking. Once it reaches a particular volume, they will call you and force you to shift for their Fulfillment service. We will be asked to maintain inventory in multiple warehouses of theirs which is expensive due to the fees involved and the fact that the inventory is locked into a single platform. Or, their subsidiaries will call you saying we want to procure in bulk and give us 3 months credit. If you give them in bulk, they will start selling at cost since these anchor sellers pay minimum fees (free or 2-3% max, whereas we pay ~40-50% of selling price). This essentially hurts your other retail channels.
During all these drama, they will continue to observe your products and sales. And one fine day they will introduce exactly same design,same quality products using their private labels. Since they source in really large quantities from big manufacturers and sell at cost without paying commission, we the original seller who spent time and money to make the product will be out of game in a snap. They throttle traffic, sales ranks, put fake negative reviews etc etc and kill our business. Once competition is eliminated, they will Jack up prices and make money.
That's the reason why we are against marketplaces with FDI maintaining inventory. It has to be either inventory based store or pure marketplace where they don't have private label or maintain inventory through proxies.
How is it different from Reliance selling self branded products from their own retail stores?
What next? Google dominates the search market so they should offer no product/service that competes with any web service that relies for visibility on Google search because they have the advantage of owning the most popular search engine?
What next? Google dominates the search market so they should offer no product/service that competes with any web service that relies for visibility on Google search because they have the advantage of owning the most popular search engine?
How can government justify being in any industry where there are private players operating? Like LIC, BSNL, SBI or oil? They regulate these industries. They can have policies favorable to their owned businesses hurting private competition? Plus of course they have access to public funds to keep these business operating despite heavy losses.