Why Flipkart, Amazon Are Facing Traders' Ire

New Delhi: IT and telecom product traders' association ADCTA on Wednesday asked its about 25,000 members across India 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 lesser price than purchase price," the traders' association said in statement.

Many technology products such as mobile phones and tablets are available online at lesser price than in retail stores, impacting adversely their business by traders.

"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.

E-tailers Amazon and Flipkart responded by saying the prices are determined by sellers, no comments 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," Mr Singh said.