Amazon Favored Big Sellers in India, Documents Show
Internal records reveal how the company circumvented regulations to protect small businesses.
Key Takeaways
- Amazon gave preferential treatment to large sellers on its Indian platform.
- The company used its scale and logistics capabilities to its advantage.
- Amazon's actions may have violated Indian regulations aimed at protecting small businesses.
When Amazon entered the Indian e-commerce market, it was clear that the company would face challenges. The Indian market is highly fragmented, with a large number of small businesses competing for market share. To succeed, Amazon needed to find a way to appeal to both large and small sellers.
According to internal documents obtained by Reuters, Amazon used its scale and logistics capabilities to its advantage in India. The company gave preferential treatment to large sellers, offering them discounts, promotions, and other benefits. Amazon also used its control over the logistics network to prioritize the delivery of products sold by large sellers.
Amazon's actions may have violated Indian regulations aimed at protecting small businesses. These regulations require e-commerce companies to treat all sellers equally and to avoid giving preferential treatment to large sellers. Amazon's actions may have also led to a loss of competition in the Indian e-commerce market.
Amazon has not commented on the allegations.
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