June 2020

Complaints related to e-commerce companies pertained to “unclear guidelines for quality check of the products, lack of standardisation of refund, delivery and exchange policy. The Centre received the maximum complaints against e-commerce giants last year, prompting the Quality Council of India (QCI) to suggest that the government should “name and shame” such companies with total number of pending customer grievances.

India is the fastest growing market for the e-commerce sector. According to quoted figures, the revenue from the e-commerce sector is expected to increase from USD 39 billion in 2017 to USD 120 billion in 2020, growing at an annual rate of 51 percent, the highest in the world. Most of this growth is credited to the increasing funding received from across the world since 2009 and also to the higher engagement with the consumer base on account of increase in internet and smartphone penetration in India.

Just to outline, there are two models of e-commerce activities viz: Inventory based model-where inventory of goods and services is owned by the e-commerce entity and is sold to the customers directly. FDI is not permitted in such inventory-based model of e-commerce. Marketplace based model-where the e-commerce entity provides only information technology platform on a digital and electronic network to act as a facilitator between buyer and seller. 100% FDI is permitted under automatic route under this model, subject to certain conditions.

Ahead of the 2019 Lok Sabha Elections Prime Minister Narendra Damodar Modi and BJP Government has brought in another Masterpiece legislation which is a Point Blank hit to online Retail Giants like Flipkart and Amazon. This is the Era of E-commerce from clothes to groceries, from furniture to electronics you and me buy everthing online  as a result of which, Jeff Bezos Founder , CEO, Chairman of Amazon ( Apni Dukaan) is one of the richest in the World whereas small retailers in your community, neighbourhood (actually apni dukaan) are vanishing day by day as they are unable to cope up with the hefty discounts and exclusive sale agreement of these big shots. However the Indian Government has come to their rescue by presenting the Latest E-commerce Policy of India, 2018.