Amazon put up Pantry after comprehensive new FDI rules

Key Highlights

Under the E-commerce policy, marketplaces can’t have equity participation in sellers.

Amazon has come up with its wholly owned food Retail business, Amazon Retail India.

Amazon is now betting on third-party sellers like Sigma Online for FMCG products.

Policies of Foreign Direct Investment plays an important role in crafting the infrastructure of business because the main funds of each E-commerce giant to continue its business wisely depends on International investors and revenues. Therefore if any reformation takes place in FDI rules then E-commerce industry gets imbalanced. The same happened a few days back when Indian Government has changed few policies of FDI which got live from 1st February. Due which E-commerce giants Amazon and Flipkart have to face billions of losses. But now Amazon has come up with its wholly owned food Retail business, Amazon Retail India, it is main seller of grocery and food products in India, Amazon Pantry. 

According to two senior executives of Amazon, “Company has followed this move because the government has clarified that Foreign Direct investment through food retail can continue to sell through e-commerce.”

They will be out of the cognizance of strictures of FDI new policies. According to Department of Industrial Policy and Promotion (DIPP), there are no reformations in FDI policies of food product trading, which permits 100% FDI under approval roots for business in food products manufactured or sold in India.

Amazon pantry products have once again resumed in markets of Delhi NCR and Mumbai as Amazon Retail India as a seller for staples like edible oils, biscuits, pulses, rice and wheat, and much more grocery items have come into action.

Under the E-commerce policy, marketplaces can’t have equity participation in sellers due which Cloudtail, seller of fast moving consumer goods (FMCG) has gone off of the marketplace from 1st February because Amazon has 49% stack in it. For FMCG products, Amazon is now betting on third-party sellers like Sigma Online which lists most of the products in health and hygiene, laundry and personal care.

Amazon is planning to make Amazon Retail focused seller for Amazon Now for which Cloudtail owned the post till 1st February. After clarification of FDI rules related to food products business, Amazon Retail has boosted its team members to offer huge discounts to grab E-commerce food industry. Stay connected with us for latest updates!