India's Enforcement Directorate (ED) on Thursday (Nov 7) launched a crackdown on the vendors operating on e-commerce giants like Amazon and&nbsp;Flipkart as part of a Foreign Exchange Management Act (FEMA) investigation, according to media reports citing official sources.&nbsp;

The ED conducted raids on at least 15 to 16 locations belonging to these vendors, the sources told Hindustan Times.

The central agency conducted these search raids in multiple locations, including Delhi, Gurugram (Haryana), &nbsp;Hyderabad (Telangana), and Bengaluru (Karnataka). The sources said that the operation is linked to financial transactions conducted by “preferred” vendors on the two platforms.&nbsp;

<a href="https://www.wionews.com/business-economy/indian-retail-group-seeks-antitrust-investigation-into-quick-commerce-giants-swiggy-blinkit-and-zepto-769417">Also read:&nbsp;Indian Retail group seeks antitrust investigation into quick commerce giants Swiggy, Blinkit, and Zepto</a>

This comes after the antitrust inquiries led by the Competition Commission of India (CCI) raised questions about Amazon and Flipkart’s business practices.&nbsp;

The investigations found that the two e-commerce giants violated local competition laws by giving preference to select sellers, prioritising certain listings, and heavily discounting products, hurting other companies, officials told Hindustan Times.&nbsp;

According to the CCI’s findings, these actions could potentially harm the competition and undermine the fair business environment for smaller sellers on the platforms.&nbsp;

Watch |&nbsp;Online Sellers Sue India’s Antitrust Watchdog Over Flipkart &amp; Amazon Investigation

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By conducting this investigation, the central agency is probing the potential misuse of e-commerce platforms like Amazon and Flipkart by sellers who may have engaged in illegal financial practices.&nbsp;

For now, the ED has not revealed the identities of the vendors targeted or disclosed the illegal activities. However, the officials noted that the probe will continue, and further actions may follow depending on the evidence gathered during the raids.&nbsp;

Moreover, Amazon and Flipkart have been facing regulatory scrutiny in India over alleged unfair business practices.&nbsp;

(With inputs from agencies)

India's Enforcement Directorate (ED) on Thursday (Nov 7) launched a crackdown on the vendors operating on e-commerce giants like Amazon and Flipkart as part of a Foreign Exchange Management Act (FEMA) investigation, according to media reports citing official sources.

India's Enforcement Directorate (ED) on Thursday (Nov 7) launched a crackdown on the vendors operating on e-commerce giants like Amazon and Flipkart as part of a Foreign Exchange Management Act (FEMA) investigation, according to media reports citing official sources. The ED conducted raids on at least 15 to 16 locations belonging to these vendors, the sources told Hindustan Times. The central agency conducted these search raids in multiple locations, including Delhi, Gurugram (Haryana), Hyderabad (Telangana), and Bengaluru (Karnataka). The sources said that the operation is linked to financial transactions conducted by “preferred” vendors on the two platforms. Also read: Indian Retail group seeks antitrust investigation into quick commerce giants Swiggy, Blinkit, and Zepto This comes after the antitrust inquiries led by the Competition Commission of India (CCI) raised questions about Amazon and Flipkart’s business practices. The investigations found that the two e-commerce giants violated local competition laws by giving preference to select sellers, prioritising certain listings, and heavily discounting products, hurting other companies, officials told Hindustan Times. According to the CCI’s findings, these actions could potentially harm the competition and undermine the fair business environment for smaller sellers on the platforms. Watch | Online Sellers Sue India’s Antitrust Watchdog Over Flipkart & Amazon Investigation × By conducting this investigation, the central agency is probing the potential misuse of e-commerce platforms like Amazon and Flipkart by sellers who may have engaged in illegal financial practices. For now, the ED has not revealed the identities of the vendors targeted or disclosed the illegal activities. However, the officials noted that the probe will continue, and further actions may follow depending on the evidence gathered during the raids. Moreover, Amazon and Flipkart have been facing regulatory scrutiny in India over alleged unfair business practices. (With inputs from agencies)

Enforcement Directorate raids pan-India offices of E-commerce giants Amazon, Flipkart

Three online sellers operating on Flipkart have initiated legal action against India's antitrust watchdog, the competition commission of India, or cci. The lawsuits come in response to an investigation that concluded in august, finding that Flipkart, amazon, and select sellers violated local competition laws by giving undue preference to certain online sellers.

Sellers Challenge Indian Antitrust Probe Against Flipkart & Amazon

Amazon.com Inc. is going to impose a new price on merchants who do not utilize the company's logistical services, a move that many of these sellers see as coercive and unexpected given that the US government is preparing to sue the e-commerce behemoth.

The new cost is aimed at merchants that use Seller Fulfilled Prime, a program that allows them to manage logistics themselves while still receiving an Amazon Prime badge, which indicates to buyers that they may anticipate fast delivery. These merchants frequently offer larger things like furniture, which do not work well with Amazon's highly automated warehouses, which are meant to handle smaller products.

The documents reviewed by Bloomberg reveal that thousands of third-party vendors who transport items themselves will pay a 2 percent charge in October, which is on top of the 15 percent commission that merchants pay as a part of selling products on the platform.

Amazon has been increasing costs for merchants in recent years, which normally pay for advertising and shipping to help optimize their sales. As core internet sales growth slows, the business has grown in importance.

In the second quarter, seller services produced $32.3 billion, up 18 percent from the same period last year and more than the successful cloud services sector. For the first time last year, seller fees began eating up about half of the cost of each transaction, making it more difficult for merchants to turn a profit.

Bloomberg quoted Jason Boyce, CEO of Avenue7Media, as saying, "We’re sitting here waiting for the FTC to take action against Amazon for antitrust issues, and this fee shows Amazon is not scared at all."

Amazon has been accused of wielding excessive control over the over 2 million businesses that use its platform, which accounts for around 37.6 percent of all online spending in the United States, according to Insider Intelligence, or approximately six times more than its nearest online competition, Walmart Inc.

Moreover, seeing the increasing dominant control of Amazon, the Federal Trade Commission is planning an antitrust action against Amazon, and the timing of the additional tax caught several merchants and consultants off guard.

Bloomberg contacted some retailers who saw the additional price as an effort to get them to use Amazon's logistical services instead of shipping orders themselves.&nbsp;One furniture merchant enrolled in Seller Fulfilled Prime said that the fee will cost his company approximately $1 million a year, so he would rather use the service of Amazon as leaving the platform is not an option, seeing the size of Amazon's customer base.

(Inputs from Bloomberg)

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Amazon.com Inc. is going to impose a new price on merchants who do not utilize the company's logistical services, a move that many of these sellers see as coercive and unexpected given that the US government is preparing to sue the e-commerce behemoth.

Amazon.com Inc. is going to impose a new price on merchants who do not utilize the company's logistical services, a move that many of these sellers see as coercive and unexpected given that the US government is preparing to sue the e-commerce behemoth. The new cost is aimed at merchants that use Seller Fulfilled Prime, a program that allows them to manage logistics themselves while still receiving an Amazon Prime badge, which indicates to buyers that they may anticipate fast delivery. These merchants frequently offer larger things like furniture, which do not work well with Amazon's highly automated warehouses, which are meant to handle smaller products. The documents reviewed by Bloomberg reveal that thousands of third-party vendors who transport items themselves will pay a 2 percent charge in October, which is on top of the 15 percent commission that merchants pay as a part of selling products on the platform. Amazon has been increasing costs for merchants in recent years, which normally pay for advertising and shipping to help optimize their sales. As core internet sales growth slows, the business has grown in importance. In the second quarter, seller services produced $32.3 billion, up 18 percent from the same period last year and more than the successful cloud services sector. For the first time last year, seller fees began eating up about half of the cost of each transaction, making it more difficult for merchants to turn a profit. Bloomberg quoted Jason Boyce, CEO of Avenue7Media, as saying, "We’re sitting here waiting for the FTC to take action against Amazon for antitrust issues, and this fee shows Amazon is not scared at all." Amazon has been accused of wielding excessive control over the over 2 million businesses that use its platform, which accounts for around 37.6 percent of all online spending in the United States, according to Insider Intelligence, or approximately six times more than its nearest online competition, Walmart Inc. Moreover, seeing the increasing dominant control of Amazon, the Federal Trade Commission is planning an antitrust action against Amazon, and the timing of the additional tax caught several merchants and consultants off guard. Bloomberg contacted some retailers who saw the additional price as an effort to get them to use Amazon's logistical services instead of shipping orders themselves. One furniture merchant enrolled in Seller Fulfilled Prime said that the fee will cost his company approximately $1 million a year, so he would rather use the service of Amazon as leaving the platform is not an option, seeing the size of Amazon's customer base. (Inputs from Bloomberg) WATCH WION LIVE HERE

Amazon imposes new fees on sellers who ship their own packages

Did you know that Amazon is fleecing the sellers on its platform and possibly you as well? A new report quoted said for the first time ever Amazon’s average commission from each sale surpassed 50% in 2022. The research firm said it had done the sampling of seller transactions going back to 2016.

Amazon Charges 50% commission from sellers?

Shares of the blank-check acquisition company that plans to publicly list former US&nbsp;President Donald Trump's new social media venture fell on Monday after an eye-watering rally last week, as a short-seller said it was betting against the company.

Digital World Acquisition (DWAC.O), a Miami-based special purpose acquisition company (SPAC), fell 10.98 per cent, its first declining session since announcing Wednesday it would merge with Trump's media company to create a social media app called TRUTH Social. read more

The stock surged following the announcement and remains up over 700 per cent&nbsp;since the deal was unveiled.

Also Read |<a href="https://www.wionews.com/world/the-world-has-found-a-way-to-do-this-the-us-lags-on-paid-leave-423985">&nbsp;The world ‘has found a way to do this’: The US lags on paid leave</a>

Earlier on Monday, short seller Iceberg Research tweeted it was betting against the company’s shares.

“We are short $DWAC. Now that initial excitement has passed, we see only risks for investors in near future. Based on Trump's track record, at current price, renegotiation is likely to keep more of the merged company for him,” Iceberg Research tweeted.

Iceberg, which publishes a blog with its research on Wordpress, gained attention in 2015 for highlighting what it called aggressive accounting practices at Hong Kong-based commodities trader Noble Group. Noble denied the allegations but subsequently saw its profits collapse and was forced to sell most of its assets.

The company said earlier this year that it was short popular meme stock AMC Entertainment Holdings (AMC.N).&nbsp;

Also Read |&nbsp;<a href="https://www.wionews.com/world/us-warns-climate-poses-emerging-threat-to-financial-system-422957">US warns climate poses ‘emerging threat’ to financial system</a>

Digital World Acquisition's recent surge is reminiscent of the meme stock frenzy earlier in 2021, when an army of retail investors on Reddit fueled hyper-rallies in GameStop Corp (GME.N), AMC Entertainment Holdings and other stocks.

Twitter (TWTR.N), Facebook (FB.O) and other social media platforms banned Trump from their services after hundreds of his supporters rioted at the U.S. Capitol on January&nbsp;6.

TRUTH Social is set for a beta launch next month and full rollout in the first quarter of 2022.

SPACs allow private companies to publicly list their shares while sidestepping traditional initial public offerings.

Shares of the blank-check acquisition company that plans to publicly list former US President Donald Trump's new social media venture fell on Monday after an eye-watering rally last week, as a short-seller said it was betting against the company.

Shares of the blank-check acquisition company that plans to publicly list former US President Donald Trump's new social media venture fell on Monday after an eye-watering rally last week, as a short-seller said it was betting against the company. Digital World Acquisition (DWAC.O), a Miami-based special purpose acquisition company (SPAC), fell 10.98 per cent, its first declining session since announcing Wednesday it would merge with Trump's media company to create a social media app called TRUTH Social. read more The stock surged following the announcement and remains up over 700 per cent since the deal was unveiled. Also Read | The world ‘has found a way to do this’: The US lags on paid leave Earlier on Monday, short seller Iceberg Research tweeted it was betting against the company’s shares. “We are short $DWAC. Now that initial excitement has passed, we see only risks for investors in near future. Based on Trump's track record, at current price, renegotiation is likely to keep more of the merged company for him,” Iceberg Research tweeted. Iceberg, which publishes a blog with its research on Wordpress, gained attention in 2015 for highlighting what it called aggressive accounting practices at Hong Kong-based commodities trader Noble Group. Noble denied the allegations but subsequently saw its profits collapse and was forced to sell most of its assets. The company said earlier this year that it was short popular meme stock AMC Entertainment Holdings (AMC.N). Also Read | US warns climate poses ‘emerging threat’ to financial system Digital World Acquisition's recent surge is reminiscent of the meme stock frenzy earlier in 2021, when an army of retail investors on Reddit fueled hyper-rallies in GameStop Corp (GME.N), AMC Entertainment Holdings and other stocks. Twitter (TWTR.N), Facebook (FB.O) and other social media platforms banned Trump from their services after hundreds of his supporters rioted at the U.S. Capitol on January 6. TRUTH Social is set for a beta launch next month and full rollout in the first quarter of 2022. SPACs allow private companies to publicly list their shares while sidestepping traditional initial public offerings.

Shares of SPAC, the firm linked to Trump social media venture, down as short seller targets it

Indian sellers registered on the e-commerce giant Amazon could soon be able to find customers in Pakistan if the company is successful in holding a share in Pakistan-based fashion portal Clicky.pk.&nbsp;

Amazon bought Dubai company Souk which automatically gave the online retail giant a 33% stake in Click.pk. Souk had invested in the Pakistan fashion company in 2016.&nbsp;

Indian merchants will be able to sell products in Pakistan via Dubai if all goes to plan, reports said. Pakistan already has a list of 1,200 products which are forbidden to be imported from India which has led to an informal trade between the two&nbsp;countries mostly through Dubai and sometimes through Afghanistan.

Amazon and Click.pk have not made any remarks yet.&nbsp;

If the deal is cracked, Amazon&nbsp;could have a higher foothold in Pakistan - something that China's Alibaba has been planning to do.&nbsp;

Clicky.pk competes with players like Daraz. Pakistan’s online commerce market was estimated to be worth $100 million in 2017. Clicky.pk had raised nearly $1million by selling 33% stake to Souq in late 2016. In 2017, Amazon completed the acquisition of Souq for $580 million.&nbsp; 
&nbsp;

If the deal is cracked, Amazone could have a higher foothold in Pakistan - something that China's Alibaba has been planning to do

Indian sellers registered on the e-commerce giant Amazon could soon be able to find customers in Pakistan if the company is successful in holding a share in Pakistan-based fashion portal Clicky.pk. Amazon bought Dubai company Souk which automatically gave the online retail giant a 33% stake in Click.pk. Souk had invested in the Pakistan fashion company in 2016. Indian merchants will be able to sell products in Pakistan via Dubai if all goes to plan, reports said. Pakistan already has a list of 1,200 products which are forbidden to be imported from India which has led to an informal trade between the two countries mostly through Dubai and sometimes through Afghanistan. Amazon and Click.pk have not made any remarks yet. If the deal is cracked, Amazon could have a higher foothold in Pakistan - something that China's Alibaba has been planning to do. Clicky.pk competes with players like Daraz. Pakistan’s online commerce market was estimated to be worth $100 million in 2017. Clicky.pk had raised nearly $1million by selling 33% stake to Souq in late 2016. In 2017, Amazon completed the acquisition of Souq for $580 million.

Indian sellers may soon be able to sell products in Pakistan as Amazon looks to acquire market

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