Yes! You guessed it right from my thumbnail. and from the title. After 1 feb, There’ll no exclusive deals. on ecommerce websites. and why is it happening? Because has released a new rule. Now is it good or bad , i’ll ask you in the end of the video (via poll) We’ll talk about the law that has been released, all the details. What’s the purpose behind it. You are familiar with the ecommerce companies. Like flipkart , amazon. They are living on international funding. They are moneymen. :p Flipkart owned by walmart. Amazon It is a global ecommerce store. So they use that profit in our country. A Product which costs them 100 rs. They sell it at discounted rates , means even lower than 100 rs. In order to disrupt the whole market. Now There’s a product worth 100rs in an offline store. But on amazon, flipkart They’re selling that same product at 90rs. Then why would you buy from that offline store. You don’t need to go anywhere, they’ll get it delivered at your home. And there’s a return policy as well. It is convenient for you then why would you buy from anywhere else. But considering long term goals. What’s going on? Offline stores are in loss. right? and Gradually offline stores won’t be able to bear loss. and people won’t open offline stores. Quantity of retailers would be affected. and everyone’ll depend on online estores. Then they’ll diminish loss leadership. Then it’s on them if they want give discount or not. At that point when we are dependent on estores ,consumer will become lazy. We’ll too lazy to buy a product from somewhere else. This will ruin the culture gradually. That’s why All the trade unions were against the estores. They were in support of banning
ecommerce websites. So this mechanism of selling in loss. It’s called Predatory Price. Predatory means to affect the ecosystem In a specific area Predatory Pricing is illegal. Now when this has been highlighted. Government came up with some laws. Under which predatory pricing is not allowed. Now second thing is Some people receives leverage. some people don’t. If you’ve installed a market place Everyone should receive the same right? The one who is giving more money One who is a player. You are giving them exclusive space? I’ve already told you about the ecommerce business model. I’ve made many videos on them. So they figure out a way What they did? They started making their own products. Like amazon. flipkart. So far flipkart was owned by india. There were no issues. Amazon and flipkart , they are both are selling their own products. But If we understand it logically. They are selling their products on their site only. Or we can say their own products are being sold through affiliates. So this is illegal. Because this is againse FDI norms. Here 100% FDI hasn’t come yet. In our online sector. But they were trying to act like there’s 100% FDI norm. So government created a law against this too. So they can not sell their own products. Their products means on which they’ve around 50% stakes. Now in 2001 , there was a wholesale act. Under which , you can not sell the material for not more than 25% of your turnover to your wholesaler. To one group partner. But after launching ecommerce . This is going illegally. There are many players who are selling all their products on amazon. So that 25% norm was denied. Here , this created another legal clause. Many rules were being abolished. That’s why they came with this act. Many people are saying that modi ji created this law because Elections are coming. They are trying to impress all the retailers. Because in his rule, he created GST , Demonetisation Which caused a huge loss for retailers. But now this act will prove to be a good one. Before election They might receive vote But They went total against FDI. Because in the beginng of his rule, he supported FDI Now this rule is against FDI. Try to understand logically. All the rules were being broken already. And modi ji didn’t make them. This 25% rule was already there before modiji. And Govt didn’t allow 100% FDI in ecommerce. Then how they can sell their produtcs. 2nd – Discrimination Extra cashbacks were given on some products. Predatory Pricing was going on. That’s why this law is created. This law will be applied from 1 FEB2019 Although amazon,flipkart have applied for stay. But still All the sales of january Whatever you want to buy , take the advantage and buy now. WHo knows about future. No discounts in future. Offline will be same. Just like it used to Now there won’t be much difference between offline and online Here they catered one problem too There was some blunder in evaluation. Means a company actual value is 100rs. and someone is buying it at 120rs. Why is this happening? Maybe Black money is involved. So govt created this law. Also they said every year on 30 september. They need to submit compliance report. to RBI. all the ecommerce players. SO they have an idea how they are operating. And they will be able to detect if any rules is not followed. In india , ecommerce is a new sector but it hasn’t grown that much. If we see it has grown in the last 2 years only. Because of jio i guess ;p So now they are analysing all the problems. So slowly they will improve this. But if we look at this for long term We’ll be disappointed by this policy. THat they ruined our cashbacks ;( But we think long term When there’ll no retailers. because of online stores. the loss we had to bear at that time, then govt is saving us from that. I think Now you tell me in the poll sectio(i button) Are you with amazon/flipkart or retailer ? Do tell me in the poll section Means if you are with ecommerce I am assuming whatever they were doing was absolutely correct. And if you are retailers It means ecommerce sites were going against the norms. I am not againse ecommerce. I always say ecommerce is good. But it do contains illegal activities too Now i won’t make this video long. Like share and do tell me in the comment sectin below. Bye goodnight goodafternoon goodmorning whenever you are watching this video. And do tell me in the comment section.