A intense game of discounting- AMAZON and FLIPKART

As e-commerce giants –Amazon & Flipkart–announced from September 29, the debate over deep discounting has begun to catch the wind back. India's Competition Commission (CCI) was involved days after the traders ' body demanded a ban on festive sales by the Confederation of All Traders (CAIT).
E-commerce platforms represent 60% of on-line retail revenues, pinning expectations in the festive season after slow sales in the first two years. Flipkart and Amazon plan by offering attractive discounts to ramp up sales. CAIT has previously pointed out that such promotions build uneven playing field by manipulating market prices.

India's Competition Commission (CCI) stated that the ' merits of the investigation ' were exclusive agreements between brands of mobile phones and e-commerce sites and claims of e-commerce companies which give certain sellers preferential treatment, and that the inquiry was the most recent reverse on Amazon and Walmart's Flipkart, which claimed Indians to violate the country's foreign investment laws.
These claims are dismissed by both companies.The CCI would also like its investigative arm, in its online order of 11 pages, to check the discounting practices of e-commerce firms and their relationship with these sellers. The investigation is the latest setback for Flipkart by Amazon and Walmart, accused by Indian brick and mortar retailers of breaching the country's foreign investment laws and burning billions of dollars to offer steep discounts that hurt small traders.
The new Indian e-commerce policy will probably show that e-markets, such as Amazon and Flipkart, offer goods discounts online and not on the e-commerce website.
The policy might indeed restrict a maximum discount that a company can give. Data localization and a new regulatory body for monitoring ecommerce players operating in India are some of the issues which are reportedly included in the ecommerce strategy. The policy could also impose regulations on heavy cash-backs, especially on mobile wallets, on various platforms.

E-commerce companies like this are actually selling customer loyalty and addictive products at a low margin. They can not make profits when they sell MRP, because they have low earnings and are not even able to pay their employees.
They make profits but they are net losses in wareholding, logistics, packaging, SDE, managers, HR, board members and other bills for Flipkart's various expenditures.
Ekart logistics delivers approximately 1.2 cr shipments per month, according to Wikipedia. They can be competitive if they increase to the front fold.
Thus the motivation of the above story is that they sell products for zero profit to attract more customers. The higher the number of customers buying from the company, the greater the income.
If sold on Mrps, they lose because the sales volume is much lower and these companies must win by volume and not by the margin. The amount of products sold is directly commensurate with the investment they will receive.