The All India Online Vendors Association (AIOVA), a group of more than 3,500 sellers on e-commerce platforms, has approached the Competition Commission of India (CCI), claiming that Amazon gives preferential treatment to large sellers like Cloudtail India and Appario Retail.
It is to be noted that Cloudtail India, is a joint venture of Amazon and Infosys co-founder Narayana Murthy’s Cataraman Ventures, while, Appario Retail, is a joint venture of Amazon and Patni Group.
According to the petition filed by the AIOVA, Amazon arranges discounts for customers, through a process involving Amazon Wholesale India buying branded goods in bulk from manufacturers of mobile phones, electronics, white goods, branded fashion, etc. These procured goods are then sold to big sellers at huge discounts, booking the resultant loss in its books, thereby, enabling these sellers to sell cheaper, compared to the small sellers.
AIOVA claims that this practice is hurting the business of small sellers, who depend on the platform for their livelihood, asking to penalise Amazon India.
Apart from Amazon, there have been reports of preferential treatment towards large sellers against Indian e-commerce giant Flipkart as well.
Earlier this year in May, AIOVA had filed a similar petition accusing Flipkart of preferential treatment towards big sellers, enabling them to provide huge discounts, hurting the business small and medium sellers.
These online sellers have written to other government bodies as well, apart from the CCI, seeking intervention and asking to set up a regulatory body to overlook the sector.
With the news of Amazon’s seller upset with the e-tailer could put a damper on its big festive season sale, which is merely days away.
Last month, Amazon India had slashed storage charges and seller fee, across five categories, gearing up for the festive season, when the reports of AIOVA filing a case against Amazon India surfaced.