A thread on E-commerce 🧵🧶
Here is how e-commerce really works in India. There are two major companies, 1: amazon 🥇2: Flipkart (owned by Walmart).🥈
they both are legally a marketplace. to understand it deeply you need to understand the FDI policy of India for e-commerce
Here is how e-commerce really works in India. There are two major companies, 1: amazon 🥇2: Flipkart (owned by Walmart).🥈
they both are legally a marketplace. to understand it deeply you need to understand the FDI policy of India for e-commerce
In India e-commerce is divided into two models’
🎁(a): marketplace model ( NO inventory can be held by the marketplace ) and FDI in this model is 100%
🎁(B): inventory model (inventory can be controlled by the e-commerce company) and FDI in this model is 0 %.
🎁(a): marketplace model ( NO inventory can be held by the marketplace ) and FDI in this model is 100%
🎁(B): inventory model (inventory can be controlled by the e-commerce company) and FDI in this model is 0 %.
India allows 100% FDI in B2B wholesale, so what amazon/ Flipkart do is, they buy products in bulks using their B2B arm from various brands and manufacturers then they add a layer of preferred sellers to whom they sell these products 🔜🔝🔛🔙🔚
and then these preferred sellers sell the products in the marketplace to the consumers. this way everybody complies with the law. 😇 ( Now you understand the CCI probe)
Problem is in a way amazon/Flipkart controlling the inventory they make their market an oligopoly in which very few big (preferred) sellers contributes to substantial sale on the platform.
And a large number of small sellers contribute to a very small part of total sales on the platform.
So, that's how E-commerce works in India!
@AIOVA3 am i correct?
So, that's how E-commerce works in India!
@AIOVA3 am i correct?
