Deep Discounts Offered as New E-Commerce Legislations Loom

April Davis By April Davis | 16 Jan 2019

With less than two weeks left until India’s Government enforces tougher legislations for online marketplaces, Amazon is offering what may be its last widespread sale in the region.

Kicking off on January 20, Amazon’s Indian marketplace will be running its ‘Amazon Great Indian Sale’. Lasting for four-days, the promotional period will see consumers taking advantage of deep discounts on smartphones, consumer electronics and daily essentials.

“The Amazon Great Indian Sale will have great deals across a wide range of products including smartphones, consumer electronics, fashion, home and kitchen, large appliances, daily essentials and more,” said Vice President of Category Management at Amazon India, Manish Tiwary.

Included in the sale will be a number of smartphone brands like Apple, OnePlus, Xiaomi, Honor and Samsung, as well as discounts on Puma, MotherCare, LG and Canon products. Amazon will also be reducing the prices on private label goods and brands, including AmazonBasics, Symbol, Myx, Vedaka, and Presto, to name a few.

While its four-day sale is fairly stock-standard by Amazon’s standards, it could mark the end of an era for its Indian operations as new laws are set to come into place on February 1.

As it currently stands, two weeks from now, foreign-owned marketplaces will be unable to feature their own products and private-label inventory prominently on their sites. This is intended to prevent marketplaces from influencing pricing and offering large discounts. As such, featured product sections will not be able to include products sold directly by Amazon. The same rules will apply for rival company, Flipkart.

The global juggernaut will also have to sell any stakes it holds in overseas companies that sell goods directly to Amazon for resell onto the platform and cut any ties with favoured merchants selling via the marketplace.

The new rules have been introduced as government officials make promises to look after small businesses in the lead up to elections later in the year.

However, The Great Indian Sale is already showing signs of adopting these tighter regulations, with the business promoting handloom and handicraft products that are sold from locals across the country, such as leather shoes from Agra. Under the initiative, ‘Amazon Saheli’, female entrepreneurs will be given the opportunity to showcase their products in categories ranging from office stationery to grocery items.

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