Traders Move Against Flipkart, Amazon for Selling Below Purchase Price

IT and telecom product traders' association ADCTA (All Delhi Computer Traders Association) on Wednesday asked its members across India (about 25,000) to stop supplying goods to e-commerce portals and retailers if they sell any product below the price at which they have originally purchased it.

"A few companies namely Flipkart, Snapdeal and Amazon etc., are selling the goods through Internet. In most of the cases, these companies are selling fast moving goods at a much [lower] price than purchase price," the traders' association said in statement.

Many technology products such as mobile phones and tablets are often available online at a lower price than in retail stores, adversely impacting their trade.

"ADCTA advises dealers/distributors/suppliers to stop supplying goods to online companies in case these companies offer the same product less than purchase price," the statement added.

(Also See: Flipkart, Snapdeal and Amazon in Battle for Indian Android One Market)

Online marketplaces Amazon and Flipkart responded by saying the prices are determined by sellers, while no comment could be obtained from Snapdeal.

"We are a marketplace. We do not determine prices. Our sellers decide what to sell on our platform and at what price points," an Amazon India spokesperson said.

A Flipkart spokesperson said, "The prices on our site are decided by our sellers. As a marketplace, we simply facilitate a platform where the sellers can connect with potential customers."

All Delhi Computer Traders Association Joint Secretary Swarn Singh alleged that some of the retailers have partnered with e-commerce firms to supply them product at prices lesser than product's landing cost in the country and e-commerce firms bear the differential cost.

"We are channel partners. Almost all sales in retail market happens through us. We are aware of landing price of product at customs. ADCTA has written to government agencies to investigate in the matter," Singh said.