DEMAND TO SAFEGUARD THE INTERESTS OF 10 CRORE VYAPARIS AND CURB THE DOMINANCE OF ONLINE PLATFORMS

DECLARE DARK STORES AND E-COMMERCE WAREHOUSES ILLEGAL

A Problematic Nexus Between E-Commerce Platforms, Brands, and Financial Institutions

Preferential Partnerships: Entities presented as independent “sellers” on platforms such as Amazon and Flipkart are alleged to function as preferential partners. Through exclusive deals, preferential access, and direct connections with manufacturers, these partners can capture a significant share of sales, potentially disadvantaging other sellers.

Concerns Regarding FDI Policy: The argument is that some e-commerce platforms may effectively operate through inventory-based arrangements, despite India’s FDI framework permitting foreign-funded e-commerce companies to operate under the marketplace model subject to specified conditions. The concern is that platforms may exercise indirect control over inventory through their associated or preferred sellers.

The Demand: All dark stores and e-commerce warehouses operating in ways that violate applicable FDI or e-commerce regulations should be identified and shut down or brought into compliance, ensuring a level playing field between online platforms and traditional brick-and-mortar retailers.

Banks Offers to Offline Store

Small shopkeepers often bear transaction charges of around 2% when customers pay by credit card or through certain bank-linked payment mechanisms. When combined with the 5% discounts frequently offered to online shoppers, this can create an effective 7% margin disadvantage for brick-and-mortar retailers compared with online platforms.

Banks should either extend these same promotional offers to small, offline retailers or discontinue exclusive, platform-specific offers that disadvantage traditional retailers.

This is a relatively straightforward demand that can be implemented by the Reserve Bank of India (RBI) with minimal regulatory intervention.

Establish a Vyapar Aayog at the Centre and State Level

Empower Indian traders and ensure a level playing field in the digital marketplace.

Indian traders should have a meaningful and protected stake in India’s business ecosystem. The rules governing our markets should not be shaped solely by large global e-commerce platforms.

The proposed Vyapar Aayog, at both the Central and State levels, would provide an institutional framework to regulate market practices, safeguard fair competition, and protect the interests of Indian traders, particularly small businesses competing with large e-commerce platforms.