Draft e-commerce Policy

Draft e-commerce Policy

Commerce Minister Suresh Prabhu had released the draft e-commerce policy last week, here is an analysis of what to expect ahead ! What does the policy want ? The Draft wants a regulator for e-commerce to be established. 49% FDI to be allowed in the inventory based model. In fact, the policy also recommends the storage of data in India, as was also proposed in the Personal Data Protection Bill 2018, and discussed in deep in our previous article.  In addition, it also proposes certain restrictions on the amount of goods which can be purchased and the amount of discounts offered. This can affect the business model of a company like Amazon, which heavily relies upon such discounts, acquires customers and forces other local players out of competition(such as Snapdeal). What is the difference between Industry and Marketplace Model for e-commerce ? Under the Industry model, the website sells the products directly to the customers, without involving any sellers in between, thereby...
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