E for equality? The e-commerce giants beg to differ
What do you do when you realize that your boss is favoring your colleague who is on the same pay-scale as you? One you try to find the reason behind this favoritism or two you slide a neatly and politely written resignation to avoid this partial behavior and find an employer who values your services. Considering that there are countless MBAs and graduates who are ready to take up your job and you will be left without a source of income, the former option seems more feasible.
The current Indian e-commerce scenario is not very different, as online giants continue to favor big brands with exclusive services and deep discounts. This has created a stir among the small brands and vendors who earlier thought that the new FDI policies could turn the tables and make business more profitable for them. However, there seems to very less evident difference on the same which has resulted in creating distrust between small vendors and online platforms.
The Competition Commission of India (CCI) released a report in accordance to its interim findings that were conducted by the fair trade regulator. The study was focused on learning the emerging distribution methods and strategies in e-commerce but it uncovered numerous red flags that point towards conflicts such as preferential treatment, deep discounts and sharing of consumer data.
To create a comprehensive report the study included products like mobile phones, electronic & electrical appliances, lifestyle, and grocery. It also covered services like hotels and food. CCI also consulted various stakeholders to gather their views on a number of issues for the study.
Pressing on the issue of preferential treatment on different online platforms, the sellers claim that the platforms are more inclined towards bigger brands. They offer exclusive services and discounts to these brands along with higher search rankings.
The e-commerce platforms reverted saying that sellers are independent third party players and that they participate in deals at their discretion. On the other hand, hotels have also claimed that they are forced to offer low prices due to the competition and rate cuts offered by the online websites. To which the online websites vendors replied saying that they offer discounts above the hotel price.
In the entire conundrum, it is the small-time vendors and dealers are ones who are falling behind. It may take a considerable amount of time to reach a viable conclusion that favors all. Until then, for vendors who aim to grow business online working smart may be the only option.
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