Advertise with fastmoving.co.za
 
 

Amazon.com Inc’s grocery service is slowly returning on its India website after the online retail giant faced disruption from revised e-commerce curbs which kicked in on Feb. 1.
Amazon.com Inc’s grocery service is slowly returning on its India website after the online retail giant faced disruption from revised e-commerce curbs which kicked in on Feb. 1.

Amazon grocery service slowly returns in India after e-commerce disruption

INTERNATIONAL NEWS

Reuters - Feb 8th, 09:54

Amazon.com Inc’s grocery service is slowly returning on its India website after the online retail giant faced disruption from revised e-commerce curbs which kicked in on Feb. 1. 

New federal rules, which bar companies from selling products via vendors in which they have an equity interest, forced Amazon India to remove hundreds of thousands of products from its site last week.

The policy has spooked Amazon and Walmart-owned Indian rival, Flipkart, as it is forcing them to alter their business structures.

On Tuesday, Amazon Pantry offered select food products, such as cookies and tea, in New Delhi and Mumbai. Though Reuters reporters in both cities were able to place Pantry orders, several customers complained on Twitter they were struggling to get their requests fulfilled.

India allowed Amazon to retail food products in the country in 2017 and the company committed $500 million in investment. Amazon was using that government permission to sell some Pantry grocery products via an affiliate, two sources familiar with the plans told Reuters.

Amazon did not immediately respond to a request for comment.

Though several of Amazon’s products, such as its own range of Presto-branded home cleaning goods, were still unavailable, some have returned for sale in recent days.

Some products were now being sold through sellers in which Amazon doesn’t have direct or indirect equity stakes, making them compliant with the new rules, one of the sources said.

Nevertheless, the new policy has hit Amazon and Walmart hard.

Morgan Stanley warned that the new regulations would increase the cost of doing business and add uncertainty over losses for Flipkart. Walmart last year pumped in $16 billion to buy 77 percent of Flipkart in its biggest ever deal.

Though still too early to assess, Morgan Stanley said it may make sense for Walmart to “walk away” if it can’t see a long-term path for profits in the country.

Investors too have criticized the policy, saying the sudden changes to the e-commerce curbs raise broad worries about an unstable regulatory environment in India.

“Frequent policy changes make the whole ecosystem nervous,” said Rajat Tandon, President of the Indian Private Equity & Venture Capital Association, which counts global investors such as KKR & Co and Sequoia Capital among its members.

The new rules, however, have pleased small traders who had long complained that e-commerce giants used their control over inventory from affiliated vendors to create an unfair marketplace where they could offer discounts.
IOL 

Read more about: retailer | retail | grocery | ecommerce | business | amazon

Related News

Shoprite replaces stolen computers at Khayelitsha school
18/02/2019 - 19:28
Shoprite demonstrated its heart for the Khayelitsha community when it replaced the computers and equipment a local school lost in a recent burglary.

Bain's launches SA's oldest Single Grain Whisky in Travel Retail
18/02/2019 - 18:32
Bain’s Cape Mountain Whisky, the proudly South African and internationally award-winning single grain whisky, has launched a limited edition 15-Year-Old Single Grain Whisky exclusive to Big5 Duty Free Cape Town International and OR Tambo International Airports, and The James Sedgwick Distillery in Wellington.

SA’s first digital bank goes live in 500 Pick n Pay, Boxer Stores
18/02/2019 - 14:22
TymeBank, South Africa’s first fully licensed digital bank, will go live in 500 Pick n Pay and Boxer stores next week in preparation for the formal launch later this month.

Pioneer Foods boosted by higher prices
18/02/2019 - 08:54
Higher prices of bread, wheat flour, rice and export fruit boosted branded foods and beverages producer Pioneer Foods’ performance in the four months ended January 31.

Levi Strauss files for stock market comeback
16/02/2019 - 21:53
Jeans maker Levi Strauss has filed documents to list itself on the New York Stock Exchange, seeking to return to public markets after more than three decades.