Flipkart and Amazon are changing discount rules, here’s how

KOLKATA: Amazon and Walmart-owned Flipkart are seeking to quell price distortions, making steep discounts less of a possibility, to ensure strict compliance with ecommerce rules for foreign marketplace companies.
They are asking brands to give in writing negotiated, pre-determined prices — also called market operating prices — for products to sellers and certify that any discounts beyond this will be borne by them – marketplaces and sellers will have nothing to do with it, said executives with knowledge of the matter.
The agreement between seller and brand, initiated primarily by the marketplaces, includes a price guarantee clause. Under this, in case a product is available on another marketplace at a lower price, the seller has the liberty of matching that. However, the brands will reimburse the difference by issuing a credit note to the seller.