Jeff Bezos’ Christmas gift to Indians makes brick-and-mortar Indian retailers see red

Earlier this month, Amazon's founder and CEO Jeff Bezos had sent offers of Rs 200 gift cards to millions of Indians. This was done as a marketing gimmick for Amazon, but did not go down too well with the country's brick-and-mortar retailers.

The Retailers Association of India have filed a complaint with the Indian government and have accused Amazon of violating foreign investment laws by offering gift vouchers to its customers.

"Just two and a half years from our launch, Amazon.in has become the most visited ecommerce site in India. This customer response continues to amaze and energise us. To celebrate and thank customers for their confidence in us, we are happy to announce an Amazon.in gift card of Rs 200 for all customers who shop on Amazon.in today," the email sent by Bezos had stated.

The retailers' association, however, have filed a case in the Delhi High Court alleging that ecommerce firms from across the globe are flouting Indian FDI laws.

"Such transfer of 'cash value' to end-consumers, incentivising end-consumers to shop on a website - does this pass the test of B2B business transaction even when cash is directly being offered to retail customers?" a letter written by RAI and sent to Amitabh Kant, secretary in the Department of Industrial Policy & Promotion, stated.

Ecommerce companies, including Amazon and domestic rivals Flipkart and Snapdeal, claim that they operate on a marketplace model, only offering platforms for Indian retailers to trade.

Indian retailers, however, opine that such claims hold no value if these companies offer such gifts. "Giving customers Rs 200 is what, if not retail?" an unnamed senior retail executive asked ET.

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