Reportedly e-commerce players amazon and flipkart have sent detailed responses to the government’s Department for Promotion of industry and Internal Trade (DPIIT). Meanwhile the responses have been sent since the DPIIT had sent them questionnaires to explain how they operated their businesses in light of the complaints by the offline retailers that they were engaged in deep discounting.

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Furthermore on the deep discounting issue, the e-commerce companies have explained that sellers on their platforms are able to procure in bulk directly from the manufacturers and offer higher discounts. Further more importantly, there are several products, particularly in the mobile phones category, which are online exclusive. Here again, the offline retailers can have very little to complain about since those products are not even made available to them and the question of price differential does not arise.



Moreover on the charge that these companies are absorbing the losses due to the deep discounting practices on their books, the explanation given is that the losses incurred by them are due to the investments into building the business and technology in the Indian operations, and not because they fund predatory pricing. Perhaps both companies claim they have answered all the queries raised by DPIIT and amazon and flipkart are working with micro, small and medium enterprises too they have assured.


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