Besides the financial constraints, the Indian government’s revised foreign direct investment policy may make it harder for these companies.

This new policy for e-commerce, announced in March, states that online marketplaces will only act as platforms where sellers can list goods without any interference in pricing by the hosting companies .

Flipkart, Amazon, and Snapdeal did not respond to emails from Quartz.

The approaching festival season in India could be the big test.

During October-December, retailers in India usually register about 40% of their annual sales of clothes, electronics, automobiles, and household items. For e-commerce players, it is going to be a tough trade-off: discounts or profits.

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