Market Feedback Stance on market sale prices above MRP

Status
Not open for further replies.
There is nothing wrong in making a profit of a personal sale. You buy something may be even two or three, you feel you don't need it , you sell it off maybe for a profit and you are done.

When you buy 10 items to make a profit, advertise them online, sell them off as is in the same condition, buy another 10 to make a profit and advertise and sell them off, pay 10 people to buy for you and then sell them for for a profit, you are not making "personal sales" any more. you are running a business and when you don't have the authorization of the brand owner, you can be sued because your unauthorized sales for lower or higher prices can effect the reputation and ability of a company to make legitimate sales.

Parallel imports are (apparently) legal in India though they are not in many other countries, so import the same phones from china and sell them for 500% profit and nobody needs to care.

Flipkart made a deal with Xiaomi to sell their products officially in India and Xiaomi authorized them to be the sole reseller in India.

Anybody else who procures retail units meant for the Indian market and advertises and sells them though public channels to make a profit is in the wrong and these companies can initiate action for that. In fact Xiaomi can probably even sue Flipkart for allowing the products to leak to unauthorized resellers and the subsequent brand tarnishing that they received due to it. Its just that companies don't often go to all that trouble. They make do by denying warranty for any items that they deem to be resales though unauthorized channels.

In fact several online market places and retailers have been lately getting flagged for either indulging in or allowing unauthorized resales to happen through them. ebay.in has removed offending sales by individuals running repeated unauthorized resales when notices were sent to them.

Flipkart themselves have indulged in unauthorized selling of their own and have been flagged. Certain brands announced that they will deny warranty and support for products bought through unauthorized channels like flipkart while there are also others who have even initiated legal proceedings against them.There are cases pending against them

Just because no action was taken for wrong doing doesn't make it cease to be one. A traffic police might turn a blind eye to you jumping a signal couple of times or more, but that doesn't mean that suddenly it ceases being a serious traffic violation that endangers self and others.

At the end of the day, no where have I said anything against the forum allowing such unauthorized resales for profits or even for sale above MRP, what I am suggesting that if people who don't like them, they have the option of bringing such sales to the attention of the right channels and if they can do anything about it, let them do it.
 
So why did you even create this thread in the first place? What is bothering you?
Did you not read?
When you buy 10 items to make a profit, advertise them online, sell them off as is in the same condition, buy another 10 to make a profit and advertise and sell them off, pay 10 people to buy for you and then sell them for for a profit, you are not making "personal sales" any more. you are running a business and when you don't have the authorization of the brand owner, you can be sued because your unauthorized sales for lower or higher prices can effect the reputation and ability of a company to make legitimate sales.
 
  • Like
Reactions: justmat
As I mentioned a few posts back, I sent a mail to Xiaomi and Flipkart regarding the illegal re-sales on ebay and other places.

As opportunistic as it may be, how exactly is it illegal? Even though Flipkart is selling at INR 5999/- I suspect its MRP is probably the original announced price of 6999/- and maybe even 7999/- as a member replied to one of my previous posts. At any rate, I don't think it's "illegal" as long as the numbers stay within the MRP.
 
As opportunistic as it may be, how exactly is it illegal? Even though Flipkart is selling at INR 5999/- I suspect its MRP is probably the original announced price of 6999/- and maybe even 7999/- as a member replied to one of my previous posts. At any rate, I don't think it's "illegal" as long as the numbers stay within the MRP.

^^ Resale of retail products with intent of making a profit cannot be done without authorization from the vendor/local distributor. Anybody with approriate import licenses can do a parallel import of the same products and sell in India at whatever price they deem fit and its perfectly legal (at least in India, not so in several other countries). However the company won't honor any warranty claims on unofficially sourced products.

As far as official sold products are concerned, Flipkart has an exclusivity contract with Xiaomi and as such Xiaomi has authorized Flipkart to be the sole official reseller. Flipkart is paying good money to get the product into the country through legitimate means. They issue legitimate bills with tax breakup etc.

These middlemen on the other hand are running a retail business of ebay for profit without having any authorization from Xiaomi. They offer the product for a much higher price, but the bill customer gets is from flipkart and it has a lower sale price and correspondingly the taxes. Govt is not getting any taxes on the amount these men are making form the sale and I hardly think they would even be declaring it as income for income tax purposes. Furthermore many of the sales are at 9.5k to 10k probably well above the MRP set by the vendor. Their resales whether at higher or lower prices can also effect the reputation of the manufacturers brand and their ability to make sales in the market.

The manufacturers can deny warranty on any items that are sold outside their unauthorized channels. Also, several companies/distributors have been lately sending legal notices to online market places like ebay.in and retailers who are selling without authorization. ebay.in has even removed sales in response to notices. Flipkart themselves have received legal notices in relation to items they are selling without authorization from the official distributor/vendor.

In some scenarios these ebay.in resellers are directly shipping the items to the buyer from their flipkart kart. So they are essentially abusing flipkart platform to run a retail business and skimp on any taxes they need to pay either on the sale or on the profit which is treated as income.

There are a lot of things wrong with these sort of resales and seriously, it is a trend that should not be encouraged. If you want a sell an item or two as a personal sale, its fine. Its also fine if you put a higher price on that sale. But this is different. These people buy and they buy repeatedly with the intention of running a business. Some of them probably hire people to order as many as they can. They then sell them at higher prices and make a profit without any sort of tax liabilites at the expense of reputation loss to Xiaomi, flipkart and revenue loss to govt.
 
Last edited:
^^ Resale of retail products with intent of making a profit cannot be done without authorization from the vendor/local distributor. Anybody with approriate import licenses can do a parallel import of the same products and sell in India at whatever price they deem fit and its perfectly legal (at least in India, not so in several other countries). However the company won't honor any warranty claims on unofficially sourced products.

As far as official sold products are concerned, Flipkart has an exclusivity contract with Xiaomi and as such Xiaomi has authorized Flipkart to be the sole official reseller. Flipkart is paying good money to get the product into the country through legitimate means. They issue legitimate bills with tax breakup etc.

These middlemen on the other hand are running a retail business of ebay for profit without having any authorization from Xiaomi. They offer the product for a much higher price, but the bill customer gets is from flipkart and it has a lower sale price and correspondingly the taxes. Govt is not getting any taxes on the amount these men are making form the sale and I hardly think they would even be declaring it as income for income tax purposes. Furthermore many of the sales are at 9.5k to 10k probably well above the MRP set by the vendor. Their resales whether at higher or lower prices can also effect the reputation of the manufacturers brand and their ability to make sales in the market.

The manufacturers can deny warranty on any items that are sold outside their unauthorized channels. Also, several companies/distributors have been lately sending legal notices to online market places like ebay.in and retailers who are selling without authorization. ebay.in has even removed sales in response to notices. Flipkart themselves have received legal notices in relation to items they are selling without authorization from the official distributor/vendor.

In some scenarios these ebay.in resellers are directly shipping the items to the buyer from their flipkart kart. So they are essentially abusing flipkart platform to run a retail business and skimp on any taxes they need to pay either on the sale or on the profit which is treated as income.

There are a lot of things wrong with these sort of resales and seriously, it is a trend that should not be encouraged. If you want a sell an item or two as a personal sale, its fine. Its also fine if you put a higher price on that sale. But this is different. These people buy and they buy repeatedly with the intention of running a business. Some of them probably hire people to order as many as they can. They then sell them at higher prices and make a profit without any sort of tax liabilites at the expense of reputation loss to Xiaomi, flipkart and revenue loss to govt.

It happens in every country and the companies don't care. Prime example is Apple. It happens on every iPhone launch and they don't care. I don't see any loss of reputation, neither for Apple and certainly not for Xiaomi and Flipkart either.

Also I enquired about parallel imports and even that isn't allowed according to the head of operations at SNS, even if I have an import license. I had the opportunity to import HTC phones in hundreds from US, but according to her that wasn't allowed as I required IP documents from the manufacturer if I wanted to import.
 
^^ Resale of retail products with intent of making a profit cannot be done without authorization from the vendor/local distributor. Anybody with approriate import licenses can do a parallel import of the same products and sell in India at whatever price they deem fit and its perfectly legal (at least in India, not so in several other countries). However the company won't honor any warranty claims on unofficially sourced products.

As far as official sold products are concerned, Flipkart has an exclusivity contract with Xiaomi and as such Xiaomi has authorized Flipkart to be the sole official reseller. Flipkart is paying good money to get the product into the country through legitimate means. They issue legitimate bills with tax breakup etc.

These middlemen on the other hand are running a retail business of ebay for profit without having any authorization from Xiaomi. They offer the product for a much higher price, but the bill customer gets is from flipkart and it has a lower sale price and correspondingly the taxes. Govt is not getting any taxes on the amount these men are making form the sale and I hardly think they would even be declaring it as income for income tax purposes. Furthermore many of the sales are at 9.5k to 10k probably well above the MRP set by the vendor. Their resales whether at higher or lower prices can also effect the reputation of the manufacturers brand and their ability to make sales in the market.

The manufacturers can deny warranty on any items that are sold outside their unauthorized channels. Also, several companies/distributors have been lately sending legal notices to online market places like ebay.in and retailers who are selling without authorization. ebay.in has even removed sales in response to notices. Flipkart themselves have received legal notices in relation to items they are selling without authorization from the official distributor/vendor.

In some scenarios these ebay.in resellers are directly shipping the items to the buyer from their flipkart kart. So they are essentially abusing flipkart platform to run a retail business and skimp on any taxes they need to pay either on the sale or on the profit which is treated as income.

There are a lot of things wrong with these sort of resales and seriously, it is a trend that should not be encouraged. If you want a sell an item or two as a personal sale, its fine. Its also fine if you put a higher price on that sale. But this is different. These people buy and they buy repeatedly with the intention of running a business. Some of them probably hire people to order as many as they can. They then sell them at higher prices and make a profit without any sort of tax liabilites at the expense of reputation loss to Xiaomi, flipkart and revenue loss to govt.

Again, blah, blah, blah, unless you are an investor in Xiaomi/Flipkart, I don't know why you are getting so hyper. If Xiaomi itself doesn't care (read the ET article,) why should you?
 
  • Like
Reactions: m-jeri
Again, blah, blah, blah, unless you are an investor in Xiaomi/Flipkart, I don't know why you are getting so hyper. If Xiaomi itself doesn't care (read the ET article,) why should you?

Exactly.
Artificial shortage and middle men making money off it, is most rampant in the grains and vegetables sector in India. If you really want to make a difference try and stand up for the rights of poor farmers. You will not only help them but all the population of India will be thankful to you for getting the prices down to what should be rightfully charged.
 
  • Like
Reactions: m-jeri and letmein
Exactly.
Artificial shortage and middle men making money off it, is most rampant in the grains and vegetables sector in India. If you really want to make a difference try and stand up for the rights of poor farmers. You will not only help them but all the population of India will be thankful to you for getting the prices down to what should be rightfully charged.

Thank you. I know now that Xiaomi flash sales = artificial staple food shortages.
*cue patriotic songs*
 
Again, blah, blah, blah, unless you are an investor in Xiaomi/Flipkart, I don't know why you are getting so hyper. If Xiaomi itself doesn't care (read the ET article,) why should you?

Because that is why we can never have any good things in the country. That is why everything is overpriced. These are the kind of useless greedy scum who later and become legit resellers and distributors and put 5x price on everything to fleece the customers. After all, old habits don't die easily.

I don't care about Xiaomi or their phones and I don't like their marketing strategies either, but still, if I can do something to stop these middlemen (regardless of who is involved) by any means, I would.

I am not an investor of Xiaomi and Flipkart, but I am a tax payer who whose money is being invested in this country and I definitely don't like the kind of piss hole that it has become.

People think that voting for useless parties like AAP will get rid of corruption, but they don't find anything wrong with this kind of greedy profiteering and tax evasion. So whats the point?

Now, tell me, why do you guys care if I or somebody else wants to do something about it. If you don't care, then just shut up and get on with your lives.

Exactly.
Artificial shortage and middle men making money off it, is most rampant in the grains and vegetables sector in India. If you really want to make a difference try and stand up for the rights of poor farmers. You will not only help them but all the population of India will be thankful to you for getting the prices down to what should be rightfully charged.

Its the exact same thing. Things like allowing FDI if done right would actually help the farmers, but middlemen lobby against it so they don't want to lose their control on the market. If you cannot take a stand to try and do something to stop middlemen from their greedy profiteering off a 7k low end phone and people don't see anything wrong about it, how the hell are you going to tackle the beast that is the middlemen in wholesale and retail businesses related to everyday necessities like vegetables and food grains?
 
Last edited:
  • Like
Reactions: cyberwarfare
Because that is why we can never have any good things in the country. That is why everything is overpriced. These are the kind of useless greedy scum who later and become legit resellers and distributors and put 5x price on everything to fleece the customers. After all, old habits don't die easily.

I don't care about Xiaomi or their phones and I don't like their marketing strategies either, but still, if I can do something to stop these middlemen (regardless of who is involved) by any means, I would.

I am not an investor of Xiaomi and Flipkart, but I am a tax payer who whose money is being invested in this country and I definitely don't like the kind of piss hole that it has become.

People think that voting for useless parties like AAP will get rid of corruption, but they don't find anything wrong with this kind of greedy profiteering and tax evasion. So whats the point?

Now, tell me, why do you guys care if I or somebody else wants to do something about it. If you don't care, then just shut up and get on with your lives.



Its the exact same thing. Things like allowing FDI if done right would actually help the farmers, but middlemen lobby against it so they don't want to lose their control on the market. If you cannot take a stand to try and do something to stop middlemen from their greedy profiteering off a 7k low end phone and people don't see anything wrong about it, how the hell are you going to tackle the beast that is the middlemen in wholesale and retail businesses related to everyday necessities like vegetables and food grains?

There is a lot of things that can be done for agriculture in India, but trust me, FDI ain't it.
I can see that you have your heart in the right place and you are not just someone who just blabbers on the internet and actually does nothing and that's why I would like you to invest your valuable time in things that actually matter and will help a lot of people other than just a Chinese company and a fraud Indian capitalist venture.
 
FYI,, Response from Xiaomi regarding the resales ...

Dear Sir,

Thank you for your support and attention.

I would like to inform you that as of now flipkart in only our authorized sales partner in India, at is is available on price Rs. 5999/-.
We are unable to comment anything on any third party Website. if any body wants to buy our phone, then he/she need to register him/her self on flipkart and only that person will be eligible to buy our products.
And if someone is doing such things as you mentioned in your mail, so we are taking necessary precautions for this, we appreciate your feed back, it is valuable for us, and thank you for highlighting this issue with us. we will share it with our relevant department.
 
Status
Not open for further replies.