100% FDI in marketplace could change game plan of Flipkart and Amazon; consumers affected too

The Indian government has now permitted 100 per cent FDI in the marketplace model and this news may not be that good for the customers.

It is likely that online shoppers may have to say goodbye to great discount offers as the Centre may end up stopping the flow of discounts.

Also, the 100 per cent FDI news drew a lukewarm response from Flipkart and Amazon because the government has disallowed foreign investment in the "inventory" model.

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Even though both the e-commerce players say they comply with all rules, it is worth mentioning here that Flipkart and Amazon are majorly owned by foreign investors.

By making clear that no seller can account for more than 25 per cent of sales, the government, as per reports, could force both of them to stay below that threshold.

NASSCOM also reacted strongly against "restricting sales of a vendor to only 25 per cent of the sales in the marketplace", saying it might prove to be restrictive, more so if the vendor sells high-value items.

(Image: Indiatimes)