Amazon is boosting its accelerator programme in India that allows start-up businesses to grow by providing them with a source of information, access to investment, opportunities to network with other businesses and access to niche markets.
Amazon India is currently reaching out to a select few sellers to be a part of this programme. According to the terms of agreement, Amazon will get a chance to take over these brands at a mutually agreed pre-decided price. The terms also state that these brands cannot be sold on any other marketplace globally, until and unless Amazon gives a written permission to do so.
According to the sources, this step by Amazon will add an interesting dynamic to the dominance of existing brands. For instance, Amazon’s in-house brand Symbol has expanded into the fashion category, offering products at much cheaper prices than the established brand in the segment. Amazon India will be charging a programme fee which is 7 per cent of the gross sales of the products made by the seller each month on Amazon. Commenting on this, All India Online Vendors Association (Aiova) said, “Such programmes distort the neutrality of the platform. Sellers would be coerced to take up such a programme for survival without any liability of the platform.”