Flipkart has a new strategy to ensure your discounts don’t go anywhere

BENGALURU: Walmart-owned Flipkart has begun incentivising sellers to pass on additional discounts to customers enrolled in its loyalty programme Flipkart Plus by offering the vendors non-cash credits, even as the Indian government clamps down on what it describes as “predatory pricing” on ecommerce platforms.
As part of a new promotional programme on Flipkart, vendors choosing to offer a 5% additional discount to consumers will receive as much as 50% of discount value back as non-cash credit note.
The move is significant as Indian foreign direct investment (FDI) rules prohibit foreign-owned ecommerce marketplaces from directly or indirectly influencing the price of products sold on their platforms. In December last year, a clarification from the government further discouraged these companies from offering cashbacks to consumers on select items, forcing online marketplaces to find alternative ways to discount products and attract buyers.