Traders to not supply goods to e-tailers over lesser pricing issue

Spacescreamer

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NEW DELHI: IT and telecom products traders' association All Delhi Computer Traders Association (ADCTA) has asked its about 25,000 members across country to stop supplying goods to e-commerce portals and retailers if they sell any product below the price at which they have originally purchased it.

"A few companies namely Flipkart, Snapdeal and Amazon etc are selling the goods through internet. In most of the cases, these companies are selling fast moving goods at a much lesser price than purchase price."

ADCTA advises dealers/distributors/suppliers to stop supplying goods to online companies in case these companies offer the same product less than purchase price," ADCTA said in statement.

Many technology products such as mobile phones, tablet are available online at lesser price than in retail stores, impacting adversely their business by traders.

When contacted an Amazon India spokesperson said: "We are a marketplace. We do not determine prices. Our sellers decide what to sell on our platform and at what price points."

A Flipkart spokesperson said: "The prices on our site are decided by our sellers. As a marketplace, we simply facilitate a platform where the sellers can connect with potential customers."

ADCTA joint secretary Swarn Singh alleged that some of the retailers have partnered with e-commerce firms to supply them product at prices lesser than product's landing cost in the country and e-commerce firms bear the differential cost.

"We are channel partners. Almost all sales in retail market happens through us. We are aware of landing price of product at customs. ADCTA has written to government agencies to investigate the matter," Singh said.


Source: http://timesofindia.indiatimes.com/tech/tech-news/Offline-vs-online-Traders-to-not-supply-goods-to-e-tailers-over-pricing/articleshow/42719765.cms
 

Soyab0007

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Offline vs online: Traders to not supply goods to e-tailers over pricing

NEW DELHI: IT and telecom products traders' association All Delhi Computer Traders Association (ADCTA) has asked its about 25,000 members across country to stop supplying goods to e-commerce portals and retailers if they sell any product below the price at which they have originally purchased it.

"A few companies namely Flipkart, Snapdeal and Amazon etc are selling the goods through internet. In most of the cases, these companies are selling fast moving goods at a much lesser price than purchase price.

Source:
http://timesofindia.indiatimes.com/tech/tech-news/Offline-vs-online-Traders-to-not-supply-goods-to-e-tailers-over-pricing/articleshow/42719765.cms
 

swatkats

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This is another Fuss exactly one year after such thing https://www.techenclave.com/community/threads/small-traders-complain-to-cci-on-flipkart-etc-fair-enough.154138/

Snapdeal and Amazon Directly do not sell directly, So they have zero loss.
Normal businesses sell online and infact due to Normal sellers on Amazon and Snapdeal, Pricing is low by WSRETAIL.

Recently bought a Speakers with a MRP of 2,000 for 1250. Local shops are quoting ~ 1600. These guys have no rights to complain.
Recently amazon has been facing VAT problems for amazon fulfilled products in Karnataka due to old State laws and now Govt they backed off.
 

bigbyte

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WS Retail is an offshoot of Original Flipkart. All the best offers on Flipkart are on the products sold by WS-retail. Yes, Legally speaking they are marketplace.
Amazon India is a true market place model.
But in both these websites, predatory pricing is common and they are compensating the "Sellers" for their losses in order to boost sales on their website. They are flush with funds from VC's and can absorb these losses easily. And this is not my speculation but it a first hand information. A friend of mine, who is a distributor of Car Audio Products, was recently approached by Amazon with an offer to sell his product ₹1500 below his costing with Amazon footing the bill for his margin and losses.

For immediate gains, the customer has all the reasons to enjoy. I am buying all the products from these websites myself. But this predatory pricing is bad for long term. We have seen " MRP manipulation" techniques by Super markets. Same thing can be expected by the big e-tailers. After consolidation there will be 3-4 serious players in market and by that time they will almost finish the business of small Brick and Mortar retailers. At that time, using their command on market they will dictate the pricing.

A healthy competition is good for end users like me, but the current predatory pricing model is not healthy and is gonna affect us in long term. I wish I am wrong.
 

bigbyte

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Other way of looking at it is they will cut the multiple middle men offer better rates till we have competition in ecom.
Cut the middleman and offer the better rate is Good. But Selling below your cost price i.e Selling at loss just in order to cut every one is not healthy in long term.
 
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Party Monger

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Look at it this way. Offline retailers are **** when it comes to pricing anyway. In simple words, even if amazon and flipkart change their prices to normal levels, we'l be paying as much as the current offline charges. So even if something was available offline, I prefer the hassle free online experience, where I dont have to deal with shitty owners trying to fool me with random logic and half baked knowledge. "Saar this has 2gb graphics and is 10k cheaper than the other one with 1gb graphics. Le lo, mast deal hai." Retards.

TL;DR, These guys are only crying cause they dont get their fat margins anymore from victimizing customers and over charging them. Not to mention selling wrong products inspite of knowing customer's requirement.
 

Soyab0007

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shitty owners trying to fool me with random logic and half baked knowledge
I still remember 2-3 years back when I was building my budget system, have gone to lamington road for quotation from different shops..
90% of the shops offer me Intel processor apart from AMD
When i ask the reason they said that AMD proccy tends to heat up a lot compare to Intel..

So to clear their stock they can go to any level
Where in online shopping we can easily compare prices, read reviews & that too at a click..
 

vinukm

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This is purely a volume business market and new way of selling. See couple of vendors or shops near my home who exclusively sell goods over internet as they get many more customers than people walking to their stores and he is happy with it. So the traders have to change their mindset and be realistic and think about re organizing their business rather to complain.
 
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paarkhi

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Samsung said it's not going to bill WSRetail, so does that mean Samsung phones purchased from Flipkart will not have Samsung warranty or ...?
Source Times of India
 
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saumik_

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It's the perfect market scenario right now, don't know how the future will pan out but going by how the US markets are each niche should have a dominant player.
1. Vendors get sales online and are probably willing to lower their asking price given that these Ecom sites foot the delivery charges.
2. Ecom sites give you SH*TLOADS of coupons/discounts which is an obvious way of taking a hit in order to get better sales. I mean these "80% + 30%" off ads are ridiculous.
3. Ecom sites are all about the numbers and valuations, their cost per acquisition on advertising and re-targeting alone per sale is more than the cost of the product LOL (If under 2k which they claim they will recover on repeat sales, but they won't at this rate because INDIANS love to clicks sh*t, and your ads aren't helping.)
4. Consumers have got it good for now, I mean I actually saw an i5 4440 combo cheaper delivered to my house than the price at lammington road. So make the most of it.
5. Only drawback is you don't know who to trust, reviews/ratings on sites like snapdeal are probably paid for. Vendors for all you know send you defective or leftover/on-display stocks.
 

raksrules

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Online is here to stay and will be adopted. Sometimes the discounts are ridiculous. I bought few baby care items for my baby for under 900 Rs from firstcry.com because I had a 40% flat discount coupon. The same things would have cost me 1500 Rs+ in a medical shop. And about 10% to 15% cheaper in Alfa, Irla.
 

rdst_1

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Bigbyte pretty much summed it up perfectly. If you guys can't see what's wrong in that, I got nothing to add.
What they are doing is not only unethical, it's also against anti-competition laws. In France, Walmart, which was doing the same thing, was told to either stop selling the product or sell it at the market price.
All this would have been hunky dory if our country, like China, had opportunity for people to take jobs in the manufacturing industry at good wages. But that is not how the setup is at the moment and until we can challenge China or put regressive customs on all things made in China, where will all these people who will get displaced go. They way our middle-men are setup, it does make stuff expensive, but it also provides jobs to many people. If we are calling them out on being selfish and greedy, aren't we as consumers being the same when we decide to close our eyes towards such anti-competetion practices, just so we get a better deal.
Ironically, the sellers who are selling via Amazon despite knowing what they are doing, are digging their own graves.
 

Soyab0007

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Just to provide jobs to many people, Get stuffs expensive twice the price compare to other countries is not the solution..

sellers who are selling via Amazon despite knowing what they are doing, are digging their own graves.
This might be true but who knows in that scenario also customer will benefit.
 

ivhere

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Supply chain peoples eat the margin of offline retailers and increase the price.

Two year back when I was looking for a new laptop, I went to a local shop at which I am dealing since long time and have good relation with shop owner. I asked him if flipkart is selling the same laptop for much lesser price(price difference was 8k) why you can't do so. He asked me for the link and was amazed with fk prices. He told me even he could not get the same price from his wholesale supplier. He called his supplier in front of me and asked about the same, but supplier made excuses like flipkart imports item illegally, they don't pay the duty and taxes etc.

He was even considering about getting supply directly from flipkart instead of those moron middle men.
 

rdst_1

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Just to provide jobs to many people, Get stuffs expensive twice the price compare to other countries is not the solution..



This might be true but who knows in that scenario also customer will benefit.
It isn't but we need to create viable jobs in other sectors before we take apart a sector completely.
A service like Amazon is great for a country which has a lot of manufacturing jobs. Why?
Because it eliminates the middle-men and the people who do the real hard work get paid. But in India, most of the products sold are imported and hence a lot of people will be out of jobs.
So we need to have jobs available once this displacement happens. This availability of viable alternative jobs needs to happen before we shift to such a selling model. Also and most importantly, we need strong consumer laws in place as well considering you just can't go and confront an online reseller like you can in case of a shopkeeper.
 

aok

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Well i too agree with what @bigbyte and @rdst_1 said. Fair competition is good. But driving every other Brick and Mortar retailers out of business by selling goods at prices so low as by incurring loss is ain't fair. Using your mighty wealth for the sole purpose of wiping off every other competitor doesn't sound too good.

And remember, Amazon, Flipkart and all are still running on loss. They are yet to get profitable. They have the money to burn away just to clear space for them.


Just to provide jobs to many people, Get stuffs expensive twice the price compare to other countries is not the solution..
It is not double the prices we are talking about. Any amount that is equal to or above the Whole sale price. If these retailers can sell at loss.... they could very well sell it at wholesale prices which would still be pretty good a deal for consumers.

Again pirated goods come cheaper. But buying them is not the best of practices . Always stand with 'FAIR' trade.
 

vivek.krishnan

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Bigbyte pretty much summed it up perfectly. If you guys can't see what's wrong in that, I got nothing to add.
What they are doing is not only unethical, it's also against anti-competition laws. In France, Walmart, which was doing the same thing, was told to either stop selling the product or sell it at the market price.
All this would have been hunky dory if our country, like China, had opportunity for people to take jobs in the manufacturing industry at good wages. But that is not how the setup is at the moment and until we can challenge China or put regressive customs on all things made in China, where will all these people who will get displaced go. They way our middle-men are setup, it does make stuff expensive, but it also provides jobs to many people. If we are calling them out on being selfish and greedy, aren't we as consumers being the same when we decide to close our eyes towards such anti-competetion practices, just so we get a better deal.
Ironically, the sellers who are selling via Amazon despite knowing what they are doing, are digging their own graves.
I agree that its un-ethical to sell at predatory prices. However, it would be better if there were some more transparency in dealings. Start suggesting MSRP.

Secondly, who is the loser here? Is it us, or some traders? I sympathize towards them, but not if I am being overcharged for the same.

Thirdly, having bought from shopkeepers and online - my preference is Amazon>Flipkart>EBay>Shopkeeper. I have seen too many rude cases, and that shopkeepers try to pass off display devices as new. If caught - they just give a discount - I am looking at you, Croma Ghatkopar.

Finally, there are more people employed in logistics as well. Not a high paying job - but its a job, and surely not a middle man.

An example where the middle man is increasing the cost is the APMC with vegetables and etc. The farmer gets almost nothing, and we are paying extremely high rates.
 

ssslayer

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Cut the middleman and offer the better rate is Good. But Selling below your cost price i.e Selling at loss just in order to cut every one is not healthy in long term.
On the other hand it should hence be none of our concern (as customers) since the sellers selling constantly at price below cost will lead them to windup of shop (no profit).
Which means bye bye WSRetail (and others) if it does continue with "predatory pricing".
Which also means the situation will become the same as it was before e-tailers came into existence in India.