Amazon and Flipkart ensures that the brands bear their own discount costs

The e-commerce firms such as Amazon and Walmart owned Flipkart are seeking to put an end to steep discounting. The firms have asked brands to give in writing the market operating prices and certify that any discounts beyond that will be borne by the brands itself.

This agreement between the seller and brand includes a price guarantee clause. According to the clause, if a similar product is sold at a lower price on another marketplace, then the seller can match the cost but the brands have to reimburse it to the sellers by issuing a credit note. Earlier, the sellers would lower the prices by paying for discounts themselves.

The two e-tailers have told sellers that no vendors will be given preferential treatment and the logistics rate and commission will be standard. Discounts will be much more regulated going forward, says Ankur Dayal, CEO of Primarc Pecan Retail, a leading seller on Amazon and Flipkart.

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