n this Era of Digital World E-Commerce Industry Flourishing in Possible Horizon as they like but Now Indian Government had put rules to Support Customers and Offline Vendors. Indian Government Recently Amended e-commerce norms to bring down the unfair power held by e-commerce giants such as Amazon and Flipkart mainly through pricing in their Heavy Sales.
Ministry of Commerce and Industry had made a mandatory rule that e-commerce websites are not supposed to sell the product of the companies in which they are holding shares. Statement from Ministry says “An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity,”
“No More Exclusive Products”
Online Retailers are barred from selling Exclusive Product on their website, This Issue mainly applies to the smartphone sales where smartphones from several companies were either sold by Amazon or Flipkart. This Rule would favor offline retailers and customers as well because this way the customer is not bound to purchase mobile phones from a single platform they will have options to choose from before taking any final decisions. Offline retailers could also boost their sales by providing those mobile which were once exclusive to online portals only.
Cashback offers also likely to guarded by the Indian government in a statement by ministry it mentions that cashback offers provided by respective companies should be fair and non-discriminatory. Related companies have to file a certificate and report confirming the guidelines by 30th September of every year for the coming fiscal.
This Action by the government of India is a direct result of a complaint filed by several offline retailers claiming against the heavy discount offered by e-commerce website especially in the festive season making offline retailers to face loss.