West Bengal trade body CWBTA on Monday expressed concern over the surge in online sales during the festive season and huge discounts on e-commerce platforms. The organization said that the widening gap between online and offline prices is affecting traditional retail businesses. The Confederation of West Bengal Trade Associations (CWBTA) claimed that e-commerce companies have sold goods worth about Rs 24,000 crore in the first two days of the festive season.
Concern over wide price gap between online and offline sellers
Sushil Poddar, president of the organization, said the concern is not about the expansion of e-commerce but about the huge difference in prices between online and offline sellers. He said, “Online sales of nearly Rs 24,000 crore in just 2 days reflect a massive change in the purchasing habits of consumers. However, when such a huge sale occurs due to a huge price difference, its impact on offline traders cannot be ignored. “Traditional retailers are losing business because they cannot compete with the prices of large online platforms.”
Many types of burden on shopkeepers
Sushil Poddar said that traditional shopkeepers have to bear expenses like shop rent, employees’ salaries, electricity, taxes, transportation, storage and maintenance of goods. Moreover, they also have low profit margins. He said that competition based on prices is healthy, but when the difference in prices becomes too high, the level playing field is affected. The price of the same product should not vary much depending on whether you buy it online or from a local shop.
CWBTA urges government and relevant authorities to review the impact
CWBTA urged the government and relevant authorities to review the growing gap between online and offline prices and its long-term impact on traditional retail. It sought to ensure price transparency and fair price parity between online and offline sellers in case of similar products and brands.
CAIT also expressed concern
Traders’ organization ‘Confederation of All India Traders’ (CAIT) also expressed concern over this issue, saying that it is not against digital business, but such pricing policies are not acceptable which make it difficult for traditional traders to survive. The organization demanded equal application of rules to online and offline sellers.
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