Retail and wholesale dealers of electronic goods like laptops, PCs, and computer accessories in Gujarat, have opposed discounted pricing on e-commerce portals like Amazon and Flipkart as well as cashback offers by Paytm. They have asked Original Equipment Manufacturers (OEMs) to introduce the 'one country, one price' system, regardless of whether goods are sold online or offline, threatening to stop purchasing products otherwise.
Federation of All India IT Associations (FAIITA), the apex body of state-level organisations of retail and wholesale dealers selling electronic goods, had recently urged OEMs like Acer, HP, Asus, Dell, and Lenovo to ensure uniform pricing all online and offline outlets. However, the manufacturers did not give them any concrete assurance.
Federation of IT Associations of Gujarat (FITAG), which represents close to 4,000 retailers and wholesalers of electronic goods from the state, said in a directive to its members on Thursday, to stop fresh purchase from either the OEMs or their distributors, till the matter is resolved. It told the members to source from each other to reduce overall inventory instead. "There is no economic rationale in the discounts offered by online portals. Online companies are making losses and are eating into our business. Offline sales have been reduced by about 50 per cent because of them," said Praful Desai, President, FITAG.
The market share of offline sales has been reduced from 90 per cent in 2014-15 to 70 per cent now. Desai also alleged that retail dealers and exclusive show rooms have been reduced to presenting demonstrations to the consumers, who finally buy discounted products online.
Moreover, shopkeepers have to pay 1.2 per cent Merchant Discount Rate (MDR) on credit cards while cashbacks are offered on e-commerce platforms if payment is done through apps like Paytm. "We want a level playing field, whether it is online or offline sales or whatever is the mode of payment," said Desai.
FITAG represents 33 city-wise associations in the state.
Shopkeepers have to pay 1.2 per cent Merchant Discount Rate on credit cards while cashbacks are offered on e-commerce platforms if payment is done through apps like Paytm.