Keep Preferred Sellers of Flipkart Away From Big Billion Days Sale: Small Vendors Urge CCI

A group of online sellers affiliated to Flipkart has requested fair trade watchdog, Competition Commission of India (CCI), to restrict large sellers from participating in the 5-day Big Billion Days sale (Flipkart’s annual festive sale) scheduled to start from October 10.

Small and medium vendors have time and again alleged marketplaces giving preferential treatment to certain large sellers, leading to unfair competition for third party vendors on these platforms.

Traders organisation All India Vendors Association (AIOVA), which represents more than 3,500 vendors selling on ecommerce platforms, had earlier filed a complaint alleging Flipkart favouring its own brands. Confederation Of All India Traders (CAIT) had also filed an appeal before the National Company Law Appellate Tribunal (NCLAT) challenging CCI’s go ahead on $16 Bn Walmart-Flipkart deal.

“In the case of a normal seller, to feature on top of the search results, they have to pay sponsor fees or earn better reviews and ratings. This involves some time, effort and capital from the manufacturer/seller…(while these) are doled out for free in a discriminatory manner to the preferred brands such as MarQ, Smartbuy,” the AIOVA petition accessed by ET said.

NCLAT has ordered both Walmart and Flipkart to explain their way of doing business in India, and file its reply before it by September 20, 2018.

Flipkart plans to increase its total headcount of delivery and warehousing executives to 100K during its Big Billion Days sale, as the company expects this year’s sale to rake in 80% higher GMV than last year. At present, Flipkart indirectly employs 30K-35K delivery and warehouse executives

Flipkart reached an estimated $1.5 Bn in GMV during its Big Billion Days sale event in 2017. The company aims to triple its sales to $17.6 Bn by 2021 to maintain a lead against Amazon India and Alibaba-backed Paytm Mall.

While Flipkart held its Big Shopping Days sale from July 16-19, Amazon organised its Prime Day sale for the first time in India from July 16-17. Amazon offered its customers more than 200 exclusive new product launches, thousands of deals, and video and music selections especially curated for Prime Day. Flipkart expects to make a revenue of one month in just five days Big Billion Days sale.

[The development was reported by ET]