Business Standard

Direct selling goes for a toss as products move to e-commerce sites

Direct sellers recruited by Amway are allegedly hawking their products openly on leading e-commerce websites

E-commerce
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E-commerce

Surajeet Das GuptaKaran Choudhury New Delhi
US giant Amway, like many other direct selling companies, is confronted with a serious problem that could hit at the core of their time-tested business model. 

Direct sellers recruited by Amway, the country’s largest direct selling company, are allegedly hawking their products openly on leading e-commerce websites, even though the company admits it is in direct violation of their contractual obligations. 

E-commerce sites including Amazon, Flipkart, Nykaa, and eBayIndia, among others, offer products from direct selling companies, including from Amway, at heavily discounted rates. 

Not only are the direct sellers openly flouting rules, in many cases they also inflate prices of products (from

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