Saturday, April 2, 2016

e-commerce recent regulations

India e-commerce industry is expected to become a $ 100 billion industry by 2020, and looking at its paradigm shift on the way sales was done it demanded strict regulation of e-commerce entities.
#E-market companies:
Negatives: 
- >Marketplace player cannot allow one vendor or its group companies to account for more than 25 per cent of sales through its platform, which will try to separate vendors from market players and will force marketplaces to make changes in their businesses involving costs.
- >The norm that market players cannot directly or indirectly influence the sale price of goods and services and shall maintain a level playing field is very ambiguous any paves way for reducing discounts and discretionary tendency of govt officials.
Positives: 
- > The guideline saying - sellers will be solely responsible for warranties and guarantees, provide protection to market players. 
- >It will help Small e-market companies viz-a-viz large Companies like Amazon, Flipkart etc
#Consumers: 
Negatives: 
- >Vaguely worded norm which prohibits ventures from “directly or indirectly” influencing the sale price of goods. This will act as a deterrent for discounts which will considerably impact consumer’s value for money expectations.
- >Restrict consumer choices as vendors are restricted.
- >The retail lobby can further demand of restrictions on e-commerce which is not in consumer interest.
Positives: 
- >Tightening control on e-commerce will streamline the sector and increase consumer confidence.
Though the rules are a step in right direction but need to bring more transparency as the sector largely depends on foreign investments for logistics development and is still running under losses as it is still under competition for market acquisition.

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