In brief: Massive sales dip for Amazon, Flipkart amid India’s new ecommerce FDI rules

Amazon and Flipkart in India have seen as much as a third of sales volume disappear on their platforms since the new e-commerce foreign direct investment (FDI) rules took effect on February 1. The platforms have and capped inventory as well as pulled product listings from their joint venture and preferred sellers, leading to fewer selections, higher prices, and longer delivery time.

According to reports, both Amazon and Flipkart drove more than half the sales on their platforms either through captive sellers, like Cloudtail and Appario for Amazon, or indirectly through their commercial units, before the change in the FDI rules.

Source: Economic Times