US seeks e-comm inventory model

Negotiators cite ‘level playing field’, move may heighten the competition

- Dhirendra Kumar

US trade negotiators want India to allow online marketplaces such as Amazon India and Walmart-owned Flipkart to stock and sell their own goods, seeking a policy change that could reshape India’s online retailing.

India bars foreign-owned online retailers from holding inventory, prompting them to market goods from a large network of vendors. In contrast, locally-funded online retailers such as Ajio, BigBasket and Nykaa hold and sell their own goods. The change, if approved, could heighten competition between the two categories.

The US has cited the need for a “level playing field” between the two categories, the people cited above said on the condition of anonymity.

“Both sides are exploring ways to address the issue of greater market access for e-commerce companies, mainly US-based firms Amazon and Walmart-owned Flipkart,” said one of the two people mentioned earlier.