Amazon Walmart have huge loss due to new policy of E-commerce

USNMix Report: Amazon, Walmart, losses of so many millions of dollars 
due to change in e-commerce policy.

In 2018 Wal-Mart bought a 77 percent stake in Flipkart for $ 16 billion.

Changes to the rules for e-commerce companies have been made since February. After the new policy came into effect, Amazon and Walmart have lost about $ 50 billion dollar (3 lakh 50 thousand million rupees). In 2018 both the companies invested in large scale in India. Amazon invested about $ 5 billion in the Indian market. At the same time, Walmart bought a 77 percent stake in Flipkart for $ 16 billion.

After the new policy was introduced in India, the price of shares listed in Nasdaq (American Stock Market) fell by 5.38 percent. At the same time, Walmart's share price fell 2.06 percent. Amazon's market value reached $ 795.18 billion after the share price fell on Friday, while Walmart's market value reached $ 272.69 billion. Speaking on behalf of Flipkart, it was said that it is frustrated with the change in FDI rules in India. The company says that this decision was taken in haste.

In December, the government had issued cleanliness on the rules of foreign investment in e-commerce. In the cleanliness, it was said that e-commerce companies that take foreign investment will not be allowed to sell their platforms on the website, or to the companies or affiliates of their own group.

Even the elegant commerce companies like Amazon and Flipkart sell products that they sell on their website in which they are products supplied by their subsidiaries. Many times, due to the influence of prices, cheap goods are sold.

The e-commerce companies seeking foreign investment argued that their affiliates have goods worth around Rs 6,000 crores, which would not be possible to make a sale within a month. Because of this, they will have to bear huge losses. Therefore, the government limits the deadline for implementing the rules by 6 months. But the government rejected this argument.