Soon after the government mandated it, e-commerce companies such as Amazon and Flipkart have started displaying the country of origin of new products being listed by sellers on their sites.
Flipkart mentions the country detail in a section called ‘Manufacturing, Packaging and Import Info’, under the Specifications section of a listing. For some products such as select mobile phones, it also has the details of the importer and packers besides the manufacturer.
However, things are a little different on Amazon. In the case of products from India, Amazon mentions ‘Made in India’ right in the title of the product, likely with the aim to promote locally sourced products.
In the case of products of foreign origin, however, Amazon mentions the country of origin further below.
ALSO READ: Amazon makes 'country of origin' display must for sellers
ALSO READ: After Amazon, Flipkart asks sellers to display country of origin of products
Compliance challenge
The companies have directed their sellers to display the country of origin while making new listings as well as in existing product listings, in accordance with the Legal Metrology Act of 2009.
However, according to sources, while most of the new products have the origin displayed, reflecting the same in existing listings will take a while given that there are millions of products listed.
According to an industry executive, multiple sourcing of products is also making it difficult for sellers to categorise the name of the country as they face issues in ascertaining the exact origin of the product.
“In the case of re-sellers what can the marketplaces do? They source it from a wholesaler. So, in that case should they mention the source of the wholesaler or their own origin? Clarity on many such issues are still lacking," he said, requesting anonymity.
Amazon and Flipkart did not respond to Moneycontrol’s queries.
Last month, the two companies asked sellers to display the country of origin in their listings, adding that providing inaccurate country of origin might lead to delisting the products.
When Amazon and Flipkart began mentioning country of origin of products on their site isn’t clear. Amazon had mandated its sellers to do it from August 8. Flipkart had not set any deadline.
Nationalism in play
The idea behind displaying the country of origin on the product is to ensure that consumers make an informed choice at a time when nationalism is ruling the roost.
The marketplaces had sprung into action after multiple meetings with the government during the last couple of months in the wake of anti-China sentiments following the Galwan Valley clash.
The development comes at a time when Amazon and Flipkart are gearing up for their festive season sales, Great Indian Festival and Big Billion Days, respectively.
The sales are likely to take place by the end of September.
Testing the waters before the mega sale, Amazon held its first big sale after the outbreak of Covid-19 earlier this month. It reported double the number of customers signing up for Prime membership as compared to the year before.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
