This change shows how dangerous is to make huge investments in India. A simple change can makes your differentiation is near to zero. Amazon and Walmart made huge investments in India. Right now they have to find new ways to sell their private labels ( where they make actual profits), exclusive deals with brands good for small players in India. This article contains a link to the actual policy https://techcrunch.com/2018/12/27/amazon-walmart-india-e-commerce-restrictions/
Ending exclusivity is a good thing. It is anti competitive practice.
Good. Building a marketplace and selling stuff there is anticompetitive. Remember MS vs Netscape?
The removal of exclusive deals is a great move, I am not sure about how the other parts of policy affect big and small retailers.
Amazon will find a way to work around that rule
Isn't 25% rule detrimental to sellers? If one platform is dominant doesn't that mean the product company now needs to use less effective channels to sell their product?
It’s like having just one Toyota dealer in a city, when there is no competitor the dealer starts misusing his monopoly.
I get that...but this is sorta extreme. Imagine if people had to do this that generated ad revenue or content distribution. It would limit things like YouTube to only 25%. Then you have to find at least 3 more platforms as effective as YouTube, even though Youtube could likely get you 10x more views for same effort. This is the same as I view e-commerce platforms. If most customers are using Amazon and Walmart, but seller is now forced to stop when they hit 25% on each it gets much harder to sell because people aren't seeing the product on their platform of choice. Maybe eBay can come up with another 25%, but now you have to rely on platforms with miniscule amount of reach to scale up the last 25%. This is probably what the law is trying to solve, to forcibly make at least 4 equal competitors. Maybe using 4+ platforms to shop on is something customers have no problem with. My experience is, if I can get everything from one or two reliable sites, that's my preference, unless there's a big price difference.
Good move. By selling products for a loss, e-commerce is trying to gain market share. Not a level playing field.
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What happens when most of your team is Indian?
Whoever owns the market makes the rules. Same with US, same with China and everywhere else.