The New E-Commerce Rules in India 2019 That Have a Mixed Effect on Retailers
The new E-Commerce rules came as a huge shock for E-Commerce companies since it is going to affect their sell.
• As per new rules, they can’t sell products through companies where they hold equity stakes.
• Now onwards the marketplace is not allowed to give aggressive offers or discounts to their customers.
• No vendors can be forced to sell their products exclusively on any marketplace platform.
The new rules will help large E-Commerce companies to build a viable business rather than just depend on discounts in the near future.
Companies like Amazon and Flipkart used to offer their customers a huge number of discounts but now onwards as per the new policy they have to include a third party seller where they have no equity stake.
This new rule could have a positive impact on those small business owners who are selling offline. It also brings relief for small retailers who are selling products online.
From a consumer side, they will no longer get bumper discounts from retailers who are associated with marketplace entities.
It’s true that now onwards for small start-ups it’s difficult to raise funds from big E-Commerce companies. Thatswhy it’s high time for E-Commerce marketplace to think about the business model and focus at franchise models to expand business in India.