E-commerce Policy: Amazon Basics and Solimo products still off the shelves

ecommerce policy

The Government rolled out the new e-commerce policy on February 1 with severe restrictions. While Flipkart didn’t face any major disruptions, Amazon pulled out thousands of products under various categories due to the new e-commerce policy. This includes Amazon Echo, Amazon Basics and Solimo products. The other products which fall under private labels are also removed from the catalog. After the rollout of the e-commerce policy, customers took to various online forums and shared their anger stating that they are unable to find any deals on Amazon.

Even though Flipkart had a seller with equity stake named WS-Retail, the company slowly sold the shares and inducted new sellers without any stake. The worst affected were Cloudtail and Appario Retail in which the company had equity stakes. The Government is now considering to bring a new e-commerce policy, which incorporates the guidelines of the new FDI rule. The sources revealed to us that they won’t be a separate regulator for the e-commerce sector but will incorporate the new draft rules.

The Department for Promotion of Industry and Internal Trade (DPIIT) will hold a series of meetings with the various stakeholders before drafting the new e-commerce policy. This includes executives from various companies and other groups who are supporting and opposing the new FDI rules. It is to be noted that the Department has turned down the plea by Amazon and Flipkart to extend the January 31 deadline.

There are reports that the new e-commerce policy will include all the new rules including fresh amendments to check any loopholes. Going forward, it will be difficult for both Flipkart and Amazon to carry out business as in the fast. They have to adhere to the rules and regulation. The business should be between sellers and marketplaces should only provide warehousing and logistics support.

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Even though Amazon Echo products were out of shelves for a few hours after the commencement of the new e-commerce policy, the company managed to sell them via other sellers. Amazon is currently looking at a possibility to appoint Cloudtail and Appario as B2B partners to continue business with them. If this happens, then sellers can buy products from them and sell on the platform. If you navigate to Amazon, you will see the presence of new sellers with fewer ratings. We learned that customers are disappointed since Cloudtail and Appario was trusted sellers for a very long time.

Anand Narayanaswamy is the editor-in-chief of Netans. He was recognized as a Microsoft Most Valuable Professional (MVP) for 9 years (2002 to 2011) and currently part of MVP Reconnect program. He is also part of the prestigious ASPInsider program. Anand has published several articles and reviews related to various software and hardware products for various software and technology related websites. He is also active on social media and also participates as an Influencer for various brands. Anand can be reached at admin@netans.com

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