CIAT's Desi e-commerce venture to require on Amazon, Flipkart

CIAT's Desi e-commerce venture to require on Amazon, Flipkart

NEW DELHI: The Confederation of Indian Traders (CIAT) will soon start a nationwide-registration process of the traders/ shopkeepers from everywhere the country to bring them onto an e-commerce platform which is predicted to be launched in August.

A pilot program of the initiative has already begun in Madhya Pradesh where individual e-stores are created for the traders, CAIT, General Secretary, Praveen Khandelwal said. The nationwide programme of making a coherent B2B and B2C e-commerce platform for little retailers/ traders of the country will take next four-five months. presumably , the platform are going to be launched in August, Khandelwal said, adding that traders would comply by the regulatory process and required license which will be needed to work such a platform. The announcement has come at a time when the CAIT, an association of 70 million traders from the country have registered strong protest against e-tailers like Amazon and Walmart backed Flipkart accusing them of flouting the Foreign Direct Investment (FDI) rules.

CAIT had recently written to PM Modi, finance and commerce ministries seeking a ban on the main e-commerce sites accusing them of deep discounting, predatory pricing and preferential treatment to pick traders which has caused an enormous revenue loss to the local business ecosystem also on the govt . The Competition Commission of India (CCI) has already initiated an investigation into the allegations made by a Delhi traders body against e-commerce portals accusing them of violating various provisions of the Competition Act (2002).

The CCI has ordered its Director General to research the violations of the Section 26(1) of the Competition Act,2002 and submit the findings within 60 days. The e-commerce industry in India expected to cross $120 billion in 2020 growing at compounded annual rate of growth of 51%, may overtake US soon to become the second-largest market globally. With 100% FDI allowed within the e-commerce sector, the investments into the industry crossed $7 billion in 2018, as per a report by India Brand Equity Foundation. Amazon chief, Jeff Bezos during his recent India visit announced that the e-commerce giant would pump in $1 billion to bring Small and medium businesses in India onto the platform which took the entire amount invested in India to $6.5 billion

Cashing in
American retailer, Walmart acquired a serious stake (77%) in Flipkart in 2018 through a $16 billion deal and therefore the analysts believe that Walmart was ready to receive 50% of returns within a year of the deal.