The govt. is in process of finalizing an e-commerce policy that will regulate all prices for online companies. So those expecting heav...
The govt. is in process of finalizing an e-commerce policy that will regulate all prices for online companies. So those expecting heavy discounts and online sales, and the companies running their businesses on these strategies are in for a disappointment.
Why is this policy A challenge?
Who all would be affected?
This e-commerce policy is not targeted only at online shopping sites like Amazon, Flipkart, and Snapdeal, but also on other online sale oriented platforms like Zomato, Swiggy and Urban Clap and financial advisory services like Policy Bazaar and Bank Bazaar as well. Ola and Uber are also under the radar.How have these been companies operated at present?
As per official regulations, a complete foreign direct investment is allowed in B2B (business to business) e-commerce, but not in B2C (business to consumer) commerce. Under the rules, large online retail firms were classified as B2B because they were earning commission from the vendors who sold goods and services on their platforms. But currently the online retail giants like Amazon, Snapdeal, Flipkart etc. are following a marketplace model, where they are basically connecting sellers and buyers on an online platform. For a long time, these retail companies have been playing with the rules by setting up subsidiaries that would warehouse goods and the company would cover up as third-party merchants. And even now when the current rules bar the merchants, these companies are playing with the law and bypassing it by buying products only from preferred vendors and earn big chunks of money through the vendor advertisements on their platforms.What did the committee say?
The draft e-commerce policy, being formulated by the government, will also run alongside the recommendations of the Justice Srikrishna Committee report on data privacy.
We will come up with a policy that will promote the free flow of business as well as address security and privacy concerns. The policy will be in line with the Srikrishna Committee recommendations,” said Wadhawan, who will take over as Commerce Secretary on August 1.What do you think, will it affect you as a buyer, will it be a better system wherein everyone gets a standard and same price, or do you prefer those big bargain sales? comment down your views.
While the timelines for the same have not been specified, but it’s definitely happening sometime soon is what the secretary indicated. He did say that it would be in the “earlier possible time-frame since we can’t afford to have a vacuum in e-commerce regulation.
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