What is the new e-commerce rule?
As the new e-commerce rule strike in, Amazon has been forced to remove a series of products from their website. Various vendors who are at an equity stake are prohibited from being sold through, by different online retailers. This far-reaching impact is highly affecting the economic sectors that have drawn billions of dollars as a foreign investment. In order to give a fair chance to everyone (especially the Indian companies) and to prevent the downfall of small businesses, this rule has been implemented. There have been other sides of this rule as well, which states that the retailers will not be able to make deals for selling exclusively on one particular platform. For example, if Amazon is making something of their own, they won’t be able to sell it on their site. This will only be applicable for small to medium-sized e-commerce enterprises.
The Previously Present Drawbacks
Indian e-commerce has been carrying out this heated argument in the last few years. The fact that small business can’t even establish their presence due to a lot of unfair rules, has been a topic of argument among different businesses.
Certain retailers used to have added unfair advantages where they owned exclusive rights for their product selling. Even though all the major e-commerce sites along with Amazon is talking up against this rule, but the products have started to disappear, on the non-compliance towards the same.
For example, the section of clothes from shopper stop are no longer appearing on the list, even though the Amazon owns 5% of the company. Other than this, certain echo speakers, home cleaning goods and other customized product section have also shown a significant reduction in their count. Flipkart has also shown certain negativity towards this rule but later agreed upon complying to it.
The broken business of e-commerce
If you are someone who is in this e-commerce business for a time now, you must have realized that this platform isn’t a very fair place. Certain brands are getting the bigger portion of the pie just by setting a few business barriers. They are owning up exclusive rights to sell products. The startups are lagging behind in the process, and they are having a restricted boundary. Be it a direct consumer brand or a middle man, the newbies are not getting the chance they deserve.
After the implementation of the new rule, this scenario will probably witness a turnaround. Now everyone will get a fair chance and the dealings won’t be staying restricted to one vendor.
The Effects of the Phenomenon
A lot of traders have often complained that certain e-commerce giants have made unfair use of their buying power. This made the place an unfair platform for trading. After the announcement of this newly revised e-commerce rule, a lot of traders has expressed their deep satisfaction. They have also said that this a great step to clean the greatly violated e-commerce market. Nearly 25 million small businesses compose the whole e-commerce platform. These small scale businesses are getting their fair part, according to this new rule by Narendra Modi.
For the consumers
This is a piece of great news for the people in the business. However, various studies are predicting a major possibility for consumers to face collateral damage. In the last political session, the Indian ministry announced to treat all vendors equally. The rule will be barring different seller from featuring a product exclusively on any particular site. Thus the giants like Amazon and Walmart are prohibited from selling their own products. But on the other hand, all the Indian consumers are most likely to be affected negatively by the same. As the discounts and offers are soon to disappear, the product availability may reduce to a great extent. The leaders have kept the broad spectrum in mind before implementing this rule. It is just waiting and watching for all the Indian consumers. There is time to understand what the future of e-commerce holds for them.