Government investigates Amazon! Sellers may be restricted from offering discounts

Amazon sellers are eagerly looking forward to Black Friday and the big online promotion festival next month. The purpose of signing up for these big promotion festivals is also very different. Some hope to get a lower discount so that they can make a small profit; while some sellers will see the big promotion as an opportunity to use big discounts and lose money to improve rankings.

Regardless of whether it is feasible to make a loss to improve rankings and restore the original price to make money after the big sale, big discounts are always a must for promotional festivals such as Black Friday and Cyber ​​Monday. Even in normal times, some sellers will use superimposed discounts to increase sales on social platforms. I didn't expect such a normal thing to attract the attention of government departments.

Reuters recently reported that the Indian government is conducting an investigation into Amazon to determine whether Amazon has violated India's foreign investment regulations by offering deep discounts during major holiday sales and competing with local companies.

Just kidding, Black Friday is coming soon. Isn't it normal for us sellers to offer big discounts to boost rankings? Does the government have to intervene in this? Based on the information disclosed by the government, I will tell you the details of this incident and its impact on the Indian site.

Why does the government intervene in sellers' discounts?

The government and Reuters have uncovered evidence of violations by Amazon's rival Flipkart, which emailed sellers that if they offered big discounts, the platform would reimburse them and waive commissions.

Of course, Flipkart has definitely denied this statement. Amazon has not yet been disclosed whether it has violated the rules, and the investigation is still ongoing. However, based on Amazon's style, it is basically a violation. The Indian market is the next growth point that Amazon values ​​very much, and it is impossible for the brother-in-law not to spend money to grab the market.

So what kind of punishment will the government impose on Amazon after violating the rules? What will be the trend of the Indian site in the future?

The future of Amazon India

The Indian market has a large demographic dividend, but its infrastructure is backward and its logistics channels are very problematic. This shows that although the Indian site has great potential, it currently also has many problems.

The Indian government is quite wary of foreign e-commerce platforms like Amazon, fearing that such a behemoth entering its market will directly crush India's small and medium-sized enterprises. It has introduced a number of policies and regulations to restrict platforms and protect local companies. At the same time, India is also the first government to propose splitting up Amazon's self-operated business.

In such an environment, Amazon has violated foreign investment regulations and will certainly face heavy penalties. Fines are one aspect, and the Indian government is likely to introduce more stringent policies to limit large discounts, and may even impose mandatory minimum discounts on e-commerce sellers.

The inability to use large discounts will definitely have a certain impact on our sellers. Whether in terms of sales or daily operations, large discounts have contributed a lot. This is not good news for sellers on the Indian site.

However, India has also had favorable policies recently, because the Indian government has signed the Regional Comprehensive Economic Partnership (RCEP), which will reduce tariffs on products from China by more than 80% in the next few years. Compared with the bad news above, this tariff reduction is obviously more important, and the actual cost reduction will bring a lot of profit space to third-party sellers on India.

In general, the Indian site has great potential for future development, but now is not a good time for small sellers to enter. In addition, Indian consumers have a higher return rate than other consumers. Sellers who want to expand into the Indian market now also need to use higher profit margins to cover the additional costs brought by returns. High-profit boutique strategies will be more important in the Indian site.

We have a high-profit strategy with in-site advertising as the core. We have shared it in Guangzhou, Suzhou, Hangzhou and other places. At the invitation of fans, we came to Shenzhen to talk about this profit routine with everyone offline. Sellers who want to listen to us how to play the high-profit white hat route, scan the QR code below to find me to sign up~

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