Is Amazon Cheating India?

Amazon is a Seattle, Washington based American multinational technology company founded by Mr Jeff Bezos. It mainly focuses on E-Commerce, digital streaming, cloud computing and artificial intelligence. It ranks in the top 5 companies in the US information technology sector. Amazon is one of the most valuable brands in the world and is also referred to as the influential economic and cultural forces of the whole world. Initially, it was started as a marketplace for books only soon after many products were added for sale like electronics, video games, apparels, furniture, toys, jewellery etc.

The year 2015 came as a whole new glory for Amazon as it became the most valuable retailer in the United State after surpassing Walmart by market capitalization. It acquired the whole food market in the year 2017 for US $ 13.4 billion, this deal helped to increase its footprint as a physical retailer. In 2018 Amazon received more than a hundred million subscribers from all over the world as they announced to provide a two-day delivery service and started Amazon Prime. It is the world’s largest online market.

Definitely, you must have also made multiple purchases from Amazon and might be a Prime member too. But do you know that such a  renowned brand like Amazon is hoaxing on you? Don’t believe then read till the end.

In the year 2019 Jay Carney, the senior executive of Amazon had a meeting in Washington with the Ambassador of India as in Delhi the government had announced regulation which caused a threat for Amazon losing its business in the second most populated country. A draft was prepared for Mr Carney by the Amazon’s employees which included what he should say and what not. He highlighted how much Amazon is concerned about the growth of Indian sellers and also brought into notice that an investment of more than $ 5.5 billion has been made to provide an online platform for more than 4 lakh Indian sellers. But it didn’t conspire that around 33 sellers accounted for two-thirds of the sales of Amazon.

In a document (a snippet of that news), it was further revealed that Amazon had an indirect equity stake in two merchant companies. These sellers’ account for approximately 35% of the total sales revenue. If such sensitive information would have leaked it could have caused damage to the company. It would have undercut the company’s public message that Amazon is the friend of small business in India. Rather than improving the small-scale sectors, Amazon was favoring big sellers. Many small sellers have also alleged that they barely get any benefit from Amazon.

Do you know why most of the sales are being made only by two merchants? as they are being shown on the top search list when you search for a product, tagged as a trusted seller and whenever we see such a tag we prefer to buy from them. As we perceive if they are trusted by Amazon their products would be much better than others. Despite all these Amazon made a statement that all the sellers are treated in a fair and transparent manner and there are no biases, further it was also added that Amazon does not control the inventory of any seller but it does.

Do you agree with the statement that Amazon has made? surely not! Think even after many regulations and political obstacles Amazon has enjoyed explosive growth in India, if there were no such hindrances what the scenario had been?

Now, do you agree that Amazon is fooling India? Next time when you make any purchase from Amazon do look at how many sellers it shows and don’t only buy from the trusted sellers of Amazon. This time do try out the products of actual small scale business owners. This step of yours would help to make the micro small and medium enterprise advent growth in sales and revenue also. This would ultimately enhance the gross domestic product of our country.


  • By Vanshika Tandon

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