There is a sweet battle going on between online and offline retailers. To give you a quick summar, offline retailers are feeling the heat from inve$tor-backed online players who are selling items far below the purchase price.
Earlier, Nikon removed Flipkart and Snapdeal, Lenovo de-authorised Flipkart, Snapdeal and Amazon from selling their products on the ecommerce stores.
And now, IT and telecom products traders’ association ADCTA (All Delhi Computer Traders Association) has asked its 25,000 members across the country to stop supplying goods to e-commerce portals and retailers if they sell any product below the price at which they have originally purchased it (via).
“A few companies namely Flipkart, Snapdeal and Amazon etc are selling the goods through Internet. In most of the cases, these companies are selling fast moving goods at a much lesser price than purchase price.”
Is this new? Definitely not. Read : Ecommerce Gets Real in India: The Offline-Online Vendor War Begins.
The standard response from most of the ecommerce companies is that we are a marketplace and we let sellers decide the pricing. Which is highly questionable, if you know even a slight bit of ecommerce sourcing and pricing strategy followed by heavily funded ecommerce companies, who are losing money on each and every transaction.
Are offline players right in doing so? Well, they have no choice but to fit-in. Crying foul may not help and given that they have support from a lot of FMCG brands, we’d expect brands to interfere and define the sourcing and pricing strategy.
Till then, consumer is the king.