New e-com policy to end inventory-based sales

13 March 2023, Mumbai

The Indian government is expected to implement a new e-commerce policy that would end inventory-based sales on platforms such as Amazon and Flipkart, while also prohibiting the offering of special incentives for using a particular payment service.

The policy, which has been in development for several months, aims to ensure that e-marketplaces, both foreign and domestic, do not resort to using inventory-based models to sell their goods. The policy comes at a time when the government is piloting the rollout of Open Network for Digital Commerce (ONDC), which aims to democratize online sales for consumers and small sellers.

While e-commerce giants like Amazon and Flipkart have protested against the proposed policy, the government has taken a cautious approach to ensure there is no disruption. The consumer affairs department has already addressed some issues facing consumers, such as product reviews and addressing grievances for the sale of defective products.

According to official sources, the policy seeks to ensure that e-marketplaces operate like malls rather than stores, with checks in place to prevent preferred status from being granted to certain entities when it comes to payments. This move is expected to affect companies like Amazon, which offer benefits to consumers using Amazon Pay. However, there will be carve-outs for service sector companies in the new regime.

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