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Amazon India removes products over new marketplace regulation

By Sasha Fedorenko February 1, 2019 - 2:36 pm

Amazon India removed numerous products as new ecommerce regulations went into effect today which look set to impede the business’s efforts to grow in the country.

The marketplace began removing items on their Indian site this Thursday as they began to comply with the new foreign direct investment regulation before a midnight deadline.

Amazon own brand products such as the Echo, Presto-branded home cleaning goods and batteries are now nowhere to be found on their Amazon India.

The new policy in India is designed to prohibit merchants from selling more than 25% of products via any single online marketplace. It also bans exclusive sales, retailers from selling items in which they’re also investors. This prevents the marketplace selling their own products on Amazon India.

Amazon India trading concerns

As a result, the new regulation impacts partnerships with vendors in which Amazon have an equity interest, and also prevents sellers from trading exclusively on the platform.

Amazon and Walmart have lobbied to push the deadline of the new regulation in a bid to have enough time to prepare for it, but the government said in a statement on Thursday that it had decided “after due consideration” not to do so.

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