Commerce and Industry Minister Piyush Goyal said that giant e-commerce firms’ “predatory pricing” and the sector’s rapid growth are a matter of “concern”, and not pride, as it may lead to employment loss in traditional retail.
- According to the minister, e-commerce is eating into the share of small retailers by offering high-margin products, such as consumer electronics and apparel, at discounted rates.
- As such more than 10 million retail stores in cities, and a possible 100 million small retailers across the country are likely to be impacted, he said.
- Goyal also criticised the investment strategies of large e-commerce companies such as Amazon, suggesting that their losses caused by significant payments to professionals and top lawyers are offset by new investments.
- Predatory Pricing refers to a pricing strategy in which goods or services are offered at a very low price point, with the intention of driving out competition and creating barriers to entry.
