Walmart, Amazon Working Furiously to Comply with India’s New Rules
Flipkart, owned by Walmart, and Amazon’s Indian unit are working hard to rework ownership structures and key vendor relationships as they attempt to comply with India’s new e-commerce rules without disturbing their businesses. The rules were modified in late December and alter foreign direct investment in e-commerce. Starting Friday, e-commerce sites can’t exercise ownership or control over the inventory of sellers.
India does not allow foreign investors to control and market their own inventory on their e-commerce platforms. They are only allowed to operate marketplace platforms where others sell goods to retail consumers.
Read more at Reuters.