Samsung India withdraws its consumer promotion scheme with Amazon Pay
By MYBRANDBOOK
After huge protests from the offline cell phone retailers, Samsung India has withdrawn its consumer promotion with Amazon Pay, for smartphones. The retailers protested as the offer would mean hooking the customer to Amazon and mandatory registration of retailers in the marketplace which would ultimately hurt their business.
Samsung has removed the Amazon Pay promotion from its backend with immediate effect. The company has also informed its shop floor sales executives to inform about other promotional offers to consumers.
According to earlier reports, Samsung had rolled out a 5% and Rs 1,500 cash back offers, depending on the phone models, when the payment was done through Amazon Pay. The offline retailers under their body, All India Mobile Retailers Association (AIMRA), had planned for boycott of Samsung sales from February 11-13, which includes no sales of the handsets to consumers, no business or payment to distributors and other agitation.
AIMRA had written to Samsung India’s newly appointed MD Ken Kang about their resistance to the Amazon Pay promotion. It had written a letter to Kang on February 1 saying that to avail the cash back promotion with Amazon Pay, consumers will have to download the Amazon app and pay through Amazon Pay, which would eventually hurt the offline business as consumers would get hooked to ecommerce shopping. AIMRA said that offline retailers, by default, will get registered as Amazon sellers in the marketplace when they sign up for Amazon Pay as a business entity to receive payment for the handsets sold. The association had alleged that Samsung’s employees and distributors were forcing retailers to register as Amazon sellers for Amazon Pay and threatening to stop supplies if they fail to register.
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