Amazon has been forced to draw an estimated 400,000 products in India after the entry into force of new regulatory e-commerce business in the country today.
First announced at the end of 2018, the new regulation imposes a prohibition on exclusive sales preventing traders from selling products on platforms they consider as investors, and it concerns restrictions on discounts and cashback promotions.
It is hugely problematic for Amazon and Flipkart, its rival owned by Walmart after a $ 16 billion investment last year. After a government from 2016 prevented it from owning inventory, Amazon limited its system so that its own products were offered by entities it jointly owned with local partners. However, the latest regulation prohibits working with organizations to which it has ownership, so it is estimated to have drawn as many as 400,000 products from India in a report, according to a New York Times report.
The same report suggests that Flipkart can draw as many as a quarter of its products to comply with the rule, according to the analysis from Technopak.
Flipkart and Amazon have failed to get a three-month extension of the rules, Bloomberg therefore reported that their respective directories look very sparse today.
Online trading in the country is plunged to exceed $ 1