While hailing government’s move to offer 100 percent FDI, NASSCOM hopes the clauses do not restrict the e-commerce sector. Discounts are inbuilt in the pricing and at times, through vouchers, billed as a marketing cost,” the report states. “It is, however, not clear how the government will monitor indirect discounting as the products sold on the marketplaces are legally sold by multiple vendors.
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The Confederation of All India Traders (CAIT) has long asked for a regulatory authority to keep the prices in check, and this new policy will be seen as a victory for CAIT and all offline retailers.Ī VCCircle report however makes an interesting point in asking how the government plans to monitor the various discounts being offered by e-commerce sites. Not being able to offer deep discounts, offline retailers have cried foul and have not been able to stop buyers migrating towards e-commerce sites.
In the past couple of years, the fight between online and offline retailers was at its peak during festive seasons like Diwali. The likes of Flipkart, Snapdeal and Amazon India have long been offering deep discounts on products, which has wooed buyers to opt for online stores over offline brick-and-mortar stores.ĪLSO READ: 2015: When Flipkart, Snapdeal forced Ambanis, Birlas to join the e-commerce race In simpler words, the government has put a stop on one of the biggest factors that differentiated online and offline retail. The guideline, issued under Press Note 3 of the Department of Industrial Policy and Promotion (DIPP) states the following - “E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain level playing field.” Also Read - Best smartphone deals on Amazon, Flipkart today: Xiaomi Mi 11X, Poco X3 Pro, Moto G40 Fusion, more
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A clause in the policy is set to restrict e-commerce companies from offering huge discounts to their customers. Among the changes this new policy is set to bring, one will have a huge impact on the way e-commerce functions. After a lot of deliberations, the Indian government yesterday finally allowed 100 percent FDI in the e-commerce sector, and it being hailed as a major reform in the retail sector.