Indian e-commerce giant Flipkart announced today the launch of ebook application on Flyte digital store. To woo the customers company has offered 4000 free ebooks to download. Currently, total number of ebooks are close to 70,000. If you compare between the price of ebooks available on digital store is little less than physical books. From our sources we got to know that they are soon coming up with Windows app too.
Looks like Flipkart is going an Amazon way. Currently Amazon controls about 60 percent of the e-book market share. Overall the market share in US and European markets for digital trade books is currently at 50%. In the US, the eBooks market recently crossed $1 billion in annual sales. Indian markets are also getting matured and we see the spiral growth in digital book readership.
ED to probe Flipkart
Couple of months back BusinessWorld has covered a very good story on FDI in Indian Ecommerce titled “FDI Escapades”. It has covered majority of big daddy of Indian online retail Industry highlighting how e-tailers have created multiple identities to get around the foreign direct investment regulations.
Flipkart is also one of them and it is now under the scanner for allegedly violating FDI rules. FDI regulation allows e-commerce companies with foreign investment to carry out B2B transactions but not B2C transactions.
Typically, all foreign funded E-commerce companies are allowed to do wholesale trading with B2C companies that are unrelated and can do wholesale trading with a group company only if it does not exceed 25 per cent of its total turnover and is used for internal consumption. Many ecommerce companies are alleged for flouting these rules by creating multiples shell companies to show transactions.
Image Credit: Flipkart