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Electronic goods dealers stop buying from manufacturers in Gujarat

They claim that the predatory and monopolistic model of e-commerce marketplaces like Amazon and Flipkart has reduced their sales by about 50 per cent

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Dealers of electronics consumer goods in Gujarat have stopped fresh purchase of from manufacturers such as Asus, Acer, HP, Dell and Lenovo that they have stopped fresh buying from them till they agree on a uniformity of price of products for online sales and sales through neighbourhood shops. Dealers, represented by Federation of IT Associations of Gujarat (FITAG) had held a meeting with representatives of these companies on Monday and categorically placed their demand.

FITAG has proposed a ‘One Country – One Price’ model to all the leading manufacturers of laptops, Personal Computers and other accessories related to computers. They claim that the predatory and monopolistic model of e-commerce marketplaces like Amazon and Flipkart has reduced their sales by about 50 per cent.  

“Moreover, routine sales by e-commerce companies is drawing buyers to these sights severely affecting our business. E-commerce companies are themselves making loses. So this model is not sustainable, putting offline shops at a risk of extinction. We want a fair policy,” Mitesh Dave, former president of FITAG told DNA.

The move is a part of nationwide protests by retail and wholesale dealers against practices of e-commerce companies. 

They claim that they have been reduced to merely experience zones for buyers, who get demonstrations in these shops but finally buy online at discounted prices. 

They also oppose disparities in payment. While mobile wallets offer cashback on online purchase of sales, shopkeepers have to may a merchant discount rate if payment is done through credit cards or debit cards.

The entry of e-commerce marketplaces has resulted in a market share of merchants falling from about 90% in 2014-15 to about 70% down.

POOR SALES

FITAG has proposed a ‘One Country – One Price’ model to the man-ufacturers of laptops, Personal Computers and other accessories. They claim the monopolistic model of e-commerce marketplaces has reduced their sales by about 50% 

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