Is Amazon really ‘Aapki Apni Dukaan’?

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One of the biggest companies in the world, which advertise itself in India as ‘Aapki Apni Dukan’ (your own shop) has gotten itself into a bit of a mess lately. A couple of days ago, a few rather confidential documents of Amazon corporation were surfaced.

The controversy caught fire when Reuters (news organization) posted an exclusive article about Amazon dodging Indian regulators in circumventing local laws on foreign direct investment (FDI) in e-commerce. The report states that the documents have clearly had it written in them that Amazon, despite its claim of changing one life at a time, does favour only less than 3 dozen of its preferred seller, out of a pool of over 4,00,000 sellers on the platform. Around one-third of all selling, proceeds come from 35 big pocket sellers. Despite the company’s statement that it treats every seller equally and does all in its power to empower the small seller, documents told a different story. One allegation also made the statement that Amazon only uses small businesses to keep its face as a poster child for e-commerce in industry and to get a pass from regulation rather softly.

It has reportedly become harder and harder for international mega-million corporates to comply and run businesses smoothly in India in the past decade. This could be seen as a good thing as it indirectly encourages and assists Indian companies to take hold of the Indian market but on other hand baring corporate giants cannot be a good idea. That might be the reason why the world’s largest online retailer company might have to dodge the regulations by changing its corporate structure in India every single year, or that strategy is what made the company so huge in the first place.

More information is about to be unfolded regarding the whole situation but Amazon executives, saying that the company has never violated any law or regulation, have made statements that it’s all a rumour, quoting - “the story is unsubstantiated, incomplete, factually incorrect”. It was also said that it was a ‘malicious’ act to defame and discredit the multinational company’s name in India.

Whether the company has done a coded fraud or intentionally chose subjectively unethical practices is yet to unfold, and would it takes a political turn is still to be seen. Furthermore, the Indian trader group has demanded a ban for Amazon based on the same controversy.

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