Traders from across the country have not welcomed the Government’s decision to allow 100 per cent FDI in B2C online market and have decided to stage a protest against it. Around 10,000 trade organisations from across the country are expected to protest against the loopholes in the FDI policy.
E-tailers like Snapdeal, eBay, Amazon and Flipkart have decided to keep a close watch on the action taken by small traders. It is expected that this is going to be the largest gathering ever against e-tailers.
The guidelines in the new policy released on Tuesday restricted online marketplaces from directly or indirectly influencing sale price of goods. In addition, targeting large vendors such as WS Retail on Flipkart and Cloudtail on Amazon India, it capped total sales on an online marketplace from a group company or vendor at 25 per cent.
However, Credit Rating Information Services of India Limited (CRISIL) in a report said aggressive discounting by e-commerce players had hurt the profitability of offline retailers over the years but the new guidelines could bring back revenue growth for them, especially for those in apparel and consumer durables businesses.