Amazon Export Sales LLC debuts as seller in India
After launching its Global Store in India a couple days ago, the e-commerce giant has now listed its US arm — Amazon Export Sales LLC as a seller on its website. The foreign seller is catering to various categories such as fashion, lifestyle and electronics among others.
Amazon India denied that this violated foreign direct investment (FDI) norms as the unit was registered overseas and all transactions would be concluded outside the country.
Online sellers and brick and mortar retailers have expressed their apprehensions about the move. But the Seattle-based company said that it was in compliance with the law. “Amazon.in enables sellers (domestic and international) to list their products for Indian customers. Amazon Exports Sales LLC is also a listed seller on Amazon. in… Amazon Exports Sales LLC is an exporter of products and therefore the mention of custom duties in their listings. Amazon has a high bar for compliance with laws of the land and Amazon.in is in compliance with all applicable laws,” an Amazon India spokesperson said.
The All India Online Vendors’ Association (AIOVA), a group of 1,000 online sellers, said that when a seller is owned by the marketplace or is a group company, pricing is bound to be influenced.
Supporting the move of AIOVA, the Retailers’ Association of India (RAI), a brick and mortar grouping, has called for clarity. Kumar Rajagopalan, CEO of RAI, said, “As we understand, an ecommerce marketplace is not allowed to influence pricing. In this case when a seller is owned by Amazon, then how is it not flouting the norms? There is clarity required… and we would like government agencies to look into it.”
The e-commerce giant is taking the pains to bring its foreign ‘global’ stores to India to beat its arch-rival Flipkart in this competitive marketplace scenario.