Introduction
Amazon, the global e-commerce giant, has been aggressively expanding its dominance in India—not just as a marketplace but as a seller of its own private-label brands. Brands like Solimo, AmazonBasics, and Symbol are flooding the Indian market, often at the expense of local sellers and manufacturers.
A Reuters investigation (backed by internal Amazon documents) and a Times of India report revealed that Amazon copied best-selling products, manipulated search results, and rigged algorithms to favor its own brands. This blog dives deep into:
✔ How Amazon is undermining Indian sellers with its private labels
✔ The Solimo strategy: Copy, undercut, dominate
✔ Search manipulation and anti-competitive practices
✔ What this means for India’s e-commerce future
1. Amazon’s Private Label Invasion in India
A. The Rise of Solimo, AmazonBasics & More
Amazon has launched dozens of in-house brands in India, covering:
- Solimo (daily essentials, kitchenware, healthcare)
- AmazonBasics (electronics, home appliances)
- Symbol (fashion)
- Presto (home cleaning products)
These brands are cheaper than competitors, often because Amazon controls pricing, logistics, and platform visibility.
B. The Copycat Business Model
According to the Times of India report, Amazon’s internal strategy included:
✅ Identifying best-selling products from third-party sellers.
✅ Reverse-engineering them under Solimo/AmazonBasics.
✅ Undercutting prices to push competitors out.
Example:
- A popular trimmer brand sold by an Indian seller was replicated by AmazonBasics at 30% lower cost, killing the original seller’s business.
2. How Amazon Rigged Search Results to Favor Its Brands
A. “Search Seed” Manipulation
Amazon’s internal documents (leaked to Reuters) revealed:
🔍 Employees manually boosted Solimo & AmazonBasics in search rankings.
🔍 Algorithms tweaked to show Amazon brands even when users searched for rivals.
B. Suppressing Competing Sellers
- Delisting competitors under vague “policy violations.”
- Higher commissions for non-Amazon brands.
- Exclusive deals ensuring Amazon products appear first.
3. The Impact on Indian Sellers & Market Fairness
A. Small Businesses Squeezed Out
- Local sellers can’t compete with Amazon’s pricing & visibility.
- Many shut down after being undercut by Solimo clones.
B. Is This Anti-Competitive?
- India’s antitrust regulator (CCI) is investigating Amazon for unfair trade practices.
- Flipkart (Walmart-owned) also faces similar allegations.
C. Violation of FDI Rules?
- India’s e-commerce policy bars foreign platforms (like Amazon) from selling their own brands.
- Amazon bypasses this by using shadow entities & joint ventures.
4. What Can Be Done?
A. Government & Regulatory Action Needed
- Stricter enforcement of FDI e-commerce rules.
- Breaking Amazon’s monopoly over search rankings.
- Support for Indian startups to compete fairly.
B. Consumer Awareness
- Boycott Amazon-owned brands if ethics matter.
- Support local sellers by buying directly from them.
Conclusion: Is Amazon Colonizing India’s E-Commerce?
The evidence says yes. By copying products, rigging searches, and crushing small sellers, Amazon is turning India’s e-commerce into its private empire.
Will India push back? Or will Amazon dominate unchecked?
What do you think? Should Amazon be allowed to sell its own brands while running the marketplace? Comment below!
