Flipkart flips policy: Sellers back in driver's seat for pricing
After a 40-day suspension, e-commerce giant Flipkart has reinstated the option for sellers to change their product prices. The move comes in response to a report by Moneycontrol highlighting the difficulties faced by sellers. One anonymous seller stated, "I had declared stock-out on Flipkart for my highest selling product as my cost price had increased, but selling price could not be changed."
Flipkart accused of violating FDI policy
The controversy began when Flipkart changed its commission rate card in May, preventing many small sellers from adjusting their listing prices on the Walmart-owned platform. Sellers accused the company of violating India's foreign direct investment (FDI) policy, which prohibits e-commerce sites from influencing prices. They also claimed that the policy was discriminatory and anti-competitive as it did not apply to larger sellers.
Company denies violating regulations
In response to the allegations, a Flipkart spokesperson stated, "We are compliant with all FDI regulations and do not influence pricing. As a homegrown e-commerce marketplace, Flipkart stands steadfast in its commitment to adapting and evolving in sync with our sellers' requirements." "The all-new simplified rate card policy is aimed at optimising growth avenues for sellers while enhancing settlement transparency."
Legal expert weighs in on Flipkart's pricing controversy
Salman Waris, partner at technology-focused law firm TechLegis, commented on the situation. He stated, "If smaller sellers are not able to change prices vis-a-vis bigger players and their pricing is being dictated, it is surely an abuse of dominant position by Flipkart." Waris further added that such a practice would violate the FDI circular of 2020, which mandates a level playing field for all sellers.
