FlipKart's Big Billion Day sale saga

Flipkarts big billion day sale invited trouble for them. Now they have been in the scrutiny radar of the govt.Big Billion day sale crashed their websites and at the same time generated 100 million dollar in revenue in just 10 hours. This has led to several complaints from the brick and mortar retailers about undercutting the prices and adversely affecting completion. Some of the major retailers like future groups and other big retailers alleged that they are selling below the manufacturing price.

Flipkart spokesperson replied to this allegation and said they are an e-market place and sellers decide the price. A probe by competition commission of India cannot be ruled out. Confederation of All India Traders and the newly formed vendors association of India want a regulatory body to price undercutting during festive seasons.
This technique of bulk selling has been introduced by Snap deal earlier and they reached record sales. In the festive season flipkarts Big Billion Day sale helped them to achieve sale for 600 cr on Monday while its competitor snap deal achieved sale of 600 cr too in a day.

 

 

American Express joins with e-retailers flipkart, amazon, snap deal and The Mobile store to promote their products and services. As per the campaign American Express card members will enjoy 5-10% cash back and membership reward points on every 100 Rs spent at online retail merchants they have partnered.



Apart from all the money that is being made through the sales there have been apology mails from the flipkart bosses to people who have not been able to buy due to technical issues and price differences. Lots of concerns over the e-selling policies of the traders like flipkart and others have come to Govt scrutiny and as per the commerce minister Nirmala Sitharaman govt will look into possibility of an E-commerce policy for this kind of advantage that the e-commerce players are reaping out of the loopholes of regulatory policies.
In the near future

1.Flipkart will face enforcement directorate probe over violating foreign exchange management act
2.Some sate govt like the Karnataka Govt suggested value-added tax on 3rd party goods stored in E-commerce companies warehouses which means the margins may squeeze
.

Wittren By Dipti Prasad Padhi

By : | Category : Business and Economy| Sub Category : E-commerce India|Date : October 10,2014

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