In the past 8-10 months, e-tailers like Flipkart and Amazon have introduced their own private brands, which give them the selection control, sourcing and also the pricing. The online sellers association had launched a complaint to Competition-Commission of India against this.
Flipkart, under its Smart-buy brand will be starting a franchisee network for its private labels.
Flipkart has invited its third party sellers to put their products under its private labels, and also assures of the higher sales and better incentives.
Sellers are not in favour of this scheme as it will gain more advantage to the e-commerce player.
Flipkart has 10% earning target of overall sales on the platform.
The leveraging of third party sellers for private labels move by Flipkart will be put the third party sellers’ inventory on the back foot with no prominence on the e-tailer’s site.