TradeBody Seeks Probe into E-tail Festive Offers

Kolkata: Anxious brick-and-mortar traders have sought help from the government and asked for a probe into numerous aspects of festive mega sale by major e-commerce portals. The national pinnacle body of traders and sellers, Federation of All India Vyapar Mandal (FAIVM), has requested Union financing minister Nirmala Sitharaman and market and commerce minister Piyush Goyal to initiate queries on some thought aspects of festive mega sales revealed by two huge e-tailers.

In a letter collectively sent out to the 2 Central ministers, FAIVM alleged that a substantial discount in the nature of predatory prices; cashback by credit/debit card banks, and the high-interest rate on EMIs offered for buyers are required to be scrutinized completely. FAIVM has further shown its issues whether GST being gathered by suppliers is being correctly deposited with the government according to standards as about 6.5 lakh new vendors have been included by e-commerce websites and about the majority of sales are taking place in tier-III and rural locations where awareness on GST is not appropriate.

Talking with media individuals, FAIVM national general secretary V K Bansal said that the share of e-commerce is most likely to double this festive season sale from 5% to 10%.

Bansal cited some released reports which show that gross product worth by e-commerce in this festive season is expected to touch $7 billion i.e. about Rs 50,000 crore. It indicates about 84% increases over the last year’s festive sale.

He included that about 50 million brand-new shoppers are expected to be included in the e-shoppers’ list, out of which about 50% will sign up from tier-III cities and backwoods. On the other hand, e-commerce platforms have added about 6.5 lakh brand-new suppliers, mainly from tier-II and tier-III cities.

Another senior functionary of FAIVM, Sushil Poddar, who is also the president of the Confederation of West Bengal Traders’ Association, smells some irregularity with credit card/debit card providers, which are using a cash back to purchasers up to 10%.

Poddar is quite stunned that on one hand, our banks charge greatly of its every service from service clients, on the other hand, they are using a cash back up to 10% (with a certain cap) on transactions done throughout e-tail platforms. Debit card/credit cards are for assisting in an e-transaction and they impose specific service charges from suppliers.