Impact of e-commerce policy changes on Indian Customers

Retail is one of the most regulated and politically sensitive sectors in India and most of the retail trade is prohibited for foreigners and foreign capitals. In contrast with this, the online retail has been the key area where India has seen massive foreign investment from likes of Walmart, Amazon, Alibaba to name the marquee funds investing in Indian e-commerce space. The Department of Industrial Policy and promotion under the ministry of commerce on December 26, 2018, has introduced certain changes that are termed as clarifications to the 2017 policy in the e-commerce industry. In addition to all this, the policy is likely to impact overall internet business pace that also includes the digital payments space, and shipping, etc.

E-commerce under the policy can be defined as buying and selling of goods and services that include digital products over digital and electronic networks. This includes two basic prominent models such as:

1.      Inventory based model

Inventory based model of e-commerce states the e-commerce development activities where the inventory of goods and service is owned by e-commerce entity and is sold directly to the consumers.

2.      Marketplace based model

This model means to provide the information technology platform by an e-commerce entity on the internet to act as the facilitator between the buyer and the seller.

Impact of e-commerce policy changes in Indian customers

The major changes are likely to impact the core business model of the likes of Amazon and Flipkart where they encourage sourcing and sales with the help of preferred vendors like cloud tail and WS retail amongst others as they have the direct or indirect stake in such preferred vendors.

The customers purchasing the products sold by these vendors are usually given additional advantages in terms of pricing, fast delivery, and cash back etc. By virtue of overall control, they could provide large discounts, better user experience, and quality control.

Furthermore, the two giants such as Amazon and Flipkart by the virtue of their dominant positions now cannot insist on an exclusive tie-up with brand owners. Also, the private labels launched by Amazon and Flipkart now needs to be spaced to other players in the same e-commerce development solution category section and cannot be discriminated promoted at the expenses of other players. Some of the changes that benefit brick and mortar small and medium retail players who for the last decade have to face an onslaught of indiscriminate discounting by the online players.

Conclusion

It will be quite interesting that in coming years if the policy of e-commerce website development services can be changed a little bit so that users can have better website building and a more engaging audience will result in better outcomes. The government of India can also bring new offers to Indian e-commerce to generate more and more avenue.

For more details regarding e-commerce website development platform or to create the website, you can directly reach us at Buyyourkart.com.