14/07/2021
What are the amendments to the E-Commerce Rules that are creating a buzz in the market?
๐ซ Ban on Flash Sales: E-commerce platforms are saturated with a battalion of sellers and commodities, and often we find our favorite products at drastically lower prices for a limited period of time by specific sellers with an intention to attract customers onto their turf. The modifications to the e-commerce laws, if implemented, would prohibit such kinds of sales that are said to limit consumer choice and are therefore termed โfraudulentโ.
Disclaimer: Conventional Sales are exempted from this law.
๐ฃ๏ฟผ Disclose the name of the entity providing data for cross-selling: It is believed that e-com companies trigger customer impulse by showing ads of complementary products. For example: You mustโve seen an ad for a jar of Nutella after ordering a packet of bread on subsequent visits to your e-grocery website, and while this is a prevalent practice, companies are required to be transparent with the source of consumer data.
By forbidding e-com firms from making โavailable any information pertaining to the consumer to any person other than the consumer without the express and affirmative consent of such consumerโ, the rules aim to protect consumer data.
๐ Reveal โCountry of Originโ: E-commerce firms offering imported goods/ services must mention the name and details of the importers. Further, the Government of India has asked for a filter wherein the customer can choose the country of origin of products and also suggest alternatives to ensure a fair opportunity for domestic goods.
โผ๏ธ Sponsored listings to provide clear disclosure: The new rule recommends creating equal opportunities for all, and a fair competition between sellers on e-com platforms. This aims at eliminating firms from promoting in-house brands and discriminating through favouring particular sellers.
The new e-commerce rules have been a topic of debate since the time of its announcement. While some believe that it has the potential to transform the industry towards positive by protecting consumer data, providing equal opportunity for all, and boost made-in-India products & services; industry experts suggest that it might affect the sectorโs growth potential and create possible disputes.
All said, the ambiguity around the amendments still prevail and weโre waiting for some clarity as eagerly as you are!
What do you think is the future of e-commerce in India? Let us know in the comments below!
Source: https://lnkd.in/eAKq2TU