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  #1  
Old February 6th, 2019, 07:07 AM
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Online shopping foundation pillars shaky in India

New e-commerce rules jolt Amazon.in, Flipkart

LINK

Amazon and Walmart have together invested more than a billion (in any currency!) to India over the recent past and bet big on the online shopping market.

From 1st Feb 2019 though, Government of India's ecommerce policy has come into effect. This policy prevents online retailers from selling products from companies in which they have a stake.

This takes away capability of the likes of amazon and flipkart to sell cheaper goods and gives a big sop to small and medium businesses in India.

Quite a few news articles floating around about this but none that clarify the issue very well or how it will benefit small traders.

What are your opinions on
* What is the policy exactly?
* How much of a problem is it for bigger online ecommerce sites?
* Will it really benefit small traders?
* Will current government be able to explain enough to normal people to be able to reap benefits of bringing in such a bold policy?
* Is the policy good for India?

online shopping is impacting bricks and mortar shops all over the world including bigger economies like US and UK leading to job losses in retail sector... Will this policy be copied by others?
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Last edited by echarcha; February 6th, 2019 at 11:29 PM. Reason: formatting as per breaking news format rules
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Old February 6th, 2019, 08:33 AM
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Re: Online shopping foundation pillars shaky in India

Seems like quite a balanced policy.. may be India is ushering a fair market for all. The online shopper does lose out a bit, but for a country like India, it will help not raze the small traders completely out of the market.

Also, it may be a election thing to calm the small traders.. the core base of BJP supporters.
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Old February 6th, 2019, 11:32 PM
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Re: Online shopping foundation pillars shaky in India

Amazon and FlipKart exist for their own profits. Nothing wrong with it.

They both have a non-competitive advantage that big manufacturers directly sell through them at discounted prices. Now that too would be fair if the manufacturers only sold online. But they also have authorized dealers and other traders who sell their goods. For example, Samsung has official authorized dealers and then they also sell online at prices which the brick and mortar stores cannot compete with. That's not a level playing field.

So the government has done a good thing by protecting the smaller trader and dealer. If the manufacturers want to sell at a huge discount then let everyone in the selling chain benefit and not just Amazon.in and Flipkart.com
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Old February 6th, 2019, 11:35 PM
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Re: Online shopping foundation pillars shaky in India

Government need not explain to small traders and dealers. They understand the positive impact on their business.

And the government has not STOPPED or BANNED online sales of anything. So your headline sounds as if government is shutting down Amazon and all other online sales! They are just making it fair for everyone.
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Old February 7th, 2019, 03:37 AM
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Re: Online shopping foundation pillars shaky in India

Quote:
Originally Posted by echarcha View Post
Government need not explain to small traders and dealers. They understand the positive impact on their business.

And the government has not STOPPED or BANNED online sales of anything. So your headline sounds as if government is shutting down Amazon and all other online sales! They are just making it fair for everyone.
I agree to the fairness angle...

government has actually banned selling goods in a specific scenario - where ecommerce site has equity stake in the vendor.

"entities in which there is equity participation by the marketplace entity cannot sell their products on the platform run by the marketplace" from link for someone's interpretation

If you see majority of products on amazon.in are sold by cloudtail - which amazon has a stake in. now amazon.in cannot sell products from cloudtail.

the impact is so much that walmart is considering writing off the investment!

not a widely shared view, but there it is -
https://economictimes.indiatimes.com...w/67843595.cms
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Last edited by kkkk; February 7th, 2019 at 04:02 AM.
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Old February 7th, 2019, 03:41 AM
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Re: Online shopping foundation pillars shaky in India

on the other hand, small traders do need explaining.... Anecdotally, I cannot see the policy being understood by traders as being friendly to them.

Ashdoc bhau, what do you think about this policy - how is it received in India? any favorable government appreciation?
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Old February 11th, 2019, 03:01 AM
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Re: Online shopping foundation pillars shaky in India

Quote:
Originally Posted by echarcha View Post
Government need not explain to small traders and dealers. They understand the positive impact on their business.

And the government has not STOPPED or BANNED online sales of anything. So your headline sounds as if government is shutting down Amazon and all other online sales! They are just making it fair for everyone.

http://www.echarcha.com/forum/showpo...&postcount=223


read this echarcha bhau.... this is why government needs to explain the policy to common people and even some un-common ones... Policy is not understood, its advantages for small traders is not understood.
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