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Flipkart sellers likely to modify purchases in wake of FDI norms, says report
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Flipkart sellers likely to modify purchases in wake of FDI norms, says report
Feb 26, 2019 11:40 PM

SuperComNet, OmniTech Retail, RetailNet, and some other prominent sellers on Flipkart are planning to cut direct purchases from Flipkart wholesale to about 10 percent or less in the coming months, The Economic Times reported.

The development comes as sellers prepare themselves for any potential changes in foreign investment (FDI) rules in the future, the report said citing people familiar with the matter.

One of them told the newspaper that these sellers are doing a balancing act to comply with the newly enforced FDI norms by restricting purchases from Flipkart wholesale entity to about 25 percent and sourcing the products directly from the consumer goods firms and other distributors.

The FDI rules that were enforced in December said a vendor shall be considered “controlled” by the operator, if it sources more than 25 percent of its products from any e-tailer.

Flipkart did not respond to an ET email seeking comments.

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