Ecommerce Fraud

There is fraud of unbelievable magnitude happening in some reputed e-commerce companies that needs investigation. Here is some info:

1) Company (with funding and wanting to raise more) signs up a trusted supplier (say phone/tablet supplier)
2) Supplier orders expensive gadgets through fake accounts as a customer
3) He is both the supplier & customer (transaction happening thru e-commerce site)
4) Once he supplies, he gets a small payment from ecommerce company for discounting
5) Ecommerce company gets additional revenue (in some case high magnitude and no. of transactions)
6) Ecommerce company please investors by showing this added revenue and raises much more money at much higher valuations

Please get Enforcement Directorate and others to investigate this asap. I am also reporting this in corruption circle. If this keeps going and gets figured out much later it will cause irrepairable damage to start up india and entrepreneurs of the country. more  

View all 19 comments Below 19 comments
Can this be taken up please more  
The points raised are totally true, E COMMERCEGOODS supplied are truly not upto the mark. Thrice i am personally been victimised by FLIPCART,my question is which AGENCY is monitoring the process of business. i.e. 100.00 INR PRODUCT: 70% DISCOUNT, 10% DELIVERY CHARGE, 10% TO COURIER /DELIVERY CO. 10& EARNING TO E-COMMERCE CO. THEN WHAT IS THE PRODUCT COST. more  
This post is not relevant more  
eCommerce companies are interested to create valuation perception instead of creating value. If we observe their business models,most of the money spent is on acquiring customers by way of discounts and high profile media coverage/advertisements.This inflates their GMV with no respect to bottom line. Any business model which does not respect value of money is bound to doom.This universal truth is known to early stage investors and hence they try their best to exit at best possible valuations.The last in the chain will get lesson of his life.Sort of sophisticated and institutionalized ponzy scheme . more  
The way ecommerce companies gain is improving the GMV (Gross Merchandise Value) and bring it to the top line irrespective of losses. There is no profit but sales volume and turnover goes up. more  
Post a Comment

Related Posts

    • Taxation Issues faced by Startups: Inputs Sought

      Many of you know how LocalCircles had worked with the Government in 2019 on resolution of angel tax issues under Section 56 (2)(viib) of the Income Tax act. Once again, the Government h...

      By LocalCircles Manager
      /
    • Why no penalty an dprosecution for govt

      Now our IT portal has become sick being suffering babu virus or extortion virus. McA site never works on last days and people have to pay penalties for mistakes of govt. Now professionals are wasti...

      By SUBHASH PARAKH
      /
    • Income Tax Return Filing Portal

      What about income tax return filing date? Any extension thereof? As of today, I am not able to file the return . Has any one else file the income tax return? Has Portal issue been solved? I have al...

      By Hasmukh Sangani
      /
    • Grass root experience

      I have been doing and promoting small business for the last 30 years. The real problem is that the ministers and their secretaries don't have practical experience and they look for 5 trillion dolla...

      By AMIT MADHAV BHATTACHARYA
      /
    • Why do Ministers refrain from engaging with businesses

      I find it quite interesting that the ministers want to deal only with tata adani ambani and not the real msme and startups. Why is the msme minister (appointed this week Narayan Rane) his secretary...

      By Aditi Mitra
      /
    • Why such mismanagement

      FICCI the industry association has written to Centre saying most of 40000 ventilators manufactured under PM Cares Fund last year are lying unused at government facilities. Mainly due to negligence ...

      By Sudesh Rai
      /
    • Word of caution to Indian small entrepreneurs

      Friends this is Aditya from New Jersey. A friend of mine from Brazil recently lost 3 members of his family back home to Covid. The P1 variant is most dangerous of all and is now invading neighbors ...

      By Aditya Sharma
      /
    • simplifying procedures for easy business

      none of the administrators who are lucky to get into govt seats have practical field experience and they are not aware of the strains of small entrepreneurs. They always imagine that any entrepren...

      By Subramanian Venkataraman
      /
    • Some Traders evading gst

      I agree with the other post. Traders have a strike today against GST. Many traders basically are still selling supplies in cash and then sell the bill later to some other entity for a pr...

      By SN Mittal
      /
    • Traders and their strike

      The traders of India are simply fooling the world and doing a strike on GST. I am sorry to say but 80% of even medium size traders jump on every opportunity to do buisness without receipt with comm...

      By Shikha Chhabra
      /
    • Reduce corruption and help closed units to revive

      Ministry of Corporate should fix the amount of revival of strike off company name by charging them penalty only of Rs 100,000 and revive company name ,no other declaration or form filing

      By Surendra Kapoor
      /
Share
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)