Minister Piyush Goyal Raises Concerns Over E-Commerce Impact on Small Retailers
New Delhi [India], August 21: Commerce and Industry Minister, Piyush Goyal, has raised concerns about the functioning of the e-commerce sector. He stated that e-commerce platforms are harming small retailers by offering heavy discounts on products.
Speaking at an event for the Report Launch on ‘Net Impact of E-Commerce on Employment and Consumer Welfare in India,’ Goyal said, “E-commerce is making things much cheaper. If I go to a store and buy a five-star chocolate or a box of chocolates, it’s going to cost me 500 rupees. I can get it delivered on e-commerce for 350 rupees.” He explained that e-commerce is targeting high-value, high-margin products, which are crucial for small retailers’ survival.
Goyal expressed concerns about the potential social disruption caused by the rapid growth of e-commerce. He questioned whether the market becoming heavily reliant on e-commerce is something to be proud of. He also emphasized the need to make the sector more organized and highlighted the issue of predatory pricing by e-commerce players.
He pointed out that companies like Amazon, which reported significant losses, might be engaging in predatory pricing. Goyal questioned how these platforms manage to offer such discounts and whether it should be a matter of concern. He stressed that the predatory pricing and huge discounts by big e-commerce players could disrupt the businesses of India’s 100 million small retailers, which is a significant concern for the government.
Doubts Revealed
Piyush Goyal -: Piyush Goyal is an Indian politician who is currently serving as the Minister of Commerce and Industry. He works for the government to help manage trade and business in India.
E-commerce -: E-commerce means buying and selling things online, like on websites such as Amazon or Flipkart. It is different from shopping in physical stores.
Small retailers -: Small retailers are small shops or businesses that sell products directly to customers. They are usually owned by individuals or families, unlike big companies.
Predatory pricing -: Predatory pricing is when big companies sell products at very low prices to drive small competitors out of business. Once the small businesses close, the big companies can raise prices again.
High-margin products -: High-margin products are items that are sold at a price much higher than their cost to make. This means the seller makes a lot of profit from each sale.
Sustainability -: Sustainability means being able to keep doing something for a long time without causing harm. In this context, it means making sure business practices don’t hurt small retailers or the economy in the long run.
Social disruption -: Social disruption happens when normal life and business activities are disturbed, causing problems for people and communities. In this case, it means small retailers might suffer and close down, affecting their families and customers.