• Source:ANI
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Commerce and Industry Minister Piyush Goyal expressed concern over the functioning of the e-commerce sector, saying that e-commerce is eating into small retailers by giving heavy discounts on products. Goyal accused e-commerce players of predatory pricing and not giving a level playing field to small retailers. Speaking at an event to launch the report on 'Net Impact of E-Commerce on Employment and Consumer Welfare in India', Goyal said, "What do we all think e-commerce does? They make things so cheap.

If I go to a store and buy a five-star chocolate or a box of chocolates, it will cost me Rs 500. I can get it delivered on e-commerce for Rs 350. This is because that is the item with the largest margin. E-commerce is eating into the small retailers, high value, high margin products, which are the only products through which it survives."

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The Minister stated the growth of e-commerce is not a concern for every corner of the retail store but it is a matter of concern.

"Are we going to cause huge social disruption with this massive growth of e-commerce? And I don't see it as a matter of pride that half our market could become a part of the E-Commerce Network. Ten years from now," said Minister. 

He emphasized that there is a need to organize the sector a bit more, considering the predatory pricing being adopted by the players.

Questioning Amazon's intent he said, "They made a billion-dollar loss in their balance sheet that year, they had to fill in that loss. If you make 6000 crore loss a year doesn't it sound like predatory pricing to you? They are after all an E-commerce platform, they are not allowed to do B2C, legally...However, the reality is all of you buy on these platforms, how are they doing it? Should it not be a matter of concern for us? "

Predatory pricing and huge discounts by e-commerce giants will develop a disruption in the businesses of the Nations'100 million small retailers, said the Minister. Piyush Goyal said that the government is concerned about the situation.

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With Agencies' input.

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