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Retailers are sounding the alarm: marketplaces are displacing traditional stores from the market

Retailers are sounding the alarm: marketplaces are displacing traditional stores from the market
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Russian retailers are concerned about the consequences of the aggressive pricing policy of marketplaces, which, in their opinion, undermines the stability of classical retail and leads to the closure of stores.

Retail chains are increasingly becoming victims of the pricing policies of large online marketplaces. The Union of Shopping Centers of Russia, represented by President Bulat Shakirov, has submitted an official request to the Federal Antimonopoly Service to verify the pricing methods of marketplaces, which, in his opinion, violate the principles of fair competition. He argues that such a pricing strategy has a devastating impact on classical retail, especially on bookstore chains, stationery stores, and children's products.

The situation is confirmed by representatives of the Association of Retail Companies. According to Stanislav Bogdanov, massive price cuts on online platforms demotivate offline businesses. The difference in the cost of goods on marketplaces and in regular stores reaches 70%. In such conditions, many entrepreneurs simply cannot stand the competition.

Alexey Molodykh, CEO of the International Association for the Development of Marketplaces, emphasizes that Russian brands are in a vulnerable position. They are deprived of the opportunity to build a sustainable pricing strategy, since marketplaces, in fact, dictate the price. As a result, this may lead to the massive closure of small and medium-sized retailers.

However, representatives of the platforms themselves disagree with this. Ozon and Wildberries claim that discounts are a common marketing practice that has long been used in traditional retail. Sellers, according to them, can refuse to participate in promotions, but only a few do so.

From a legal point of view, it is extremely difficult to prove abuse by marketplaces. Anna Barabash from Enterprise Legal Solutions notes that it will be necessary to establish the fact of a monopoly position, deliberate price reduction below cost and the intention to eliminate competitors. But since the marketplaces themselves do not sell the product directly, it will not be easy to prove this.

If you limit marketing promotions and discounts, this can create unequal market conditions and lead to higher prices both online and offline. Representatives of marketplaces warn that such interference may harm the entire pricing system.