This story was provided to Company Insider Intelligence” includes suggestions that have the prospective to shift the e-commerce landscape in India, according to Quartz. The group is made up of officials from numerous ministries in India’s government, and it takes a look at a range of topics appropriate to online shopping.
The reported policy suggestions, if implemented, would have wide-ranging effects on India’s e-commerce market:
- Another recommendation looks to cut steep discounts and price wars.Discounts are a valuable weapon in e-commerce, specifically as Amazon and Flipkart take part in a battle for India’s important e-commerce market. To suppress this, the think tank suggested executing a maximum period for offers. This could assist even the playing field for brick-and-mortar merchants, and allow platforms that can’t operate as loss leaders to be successful.
- Another policy suggestion is focused on keeping customer information local.This would need e-commerce business to store customer information in India, potentially in the name of nationwide security or to motivate financial investments in the nation. Despite the reasoning, this would make operating in India more expensive for foreign companies since they wouldn’t be able to rely on their preexisting information practices.
These policy suggestions offer benefits to local platforms, potentially complicating the competition in between Amazon and Flipkart . If these policies are enacted, locally owned e-commerce gamers will have the ability to sell their own inventory, while Amazon and Flipkart, which Walmart now holds a bulk share of, will not have the ability to.
This might make local brand names more enticing, as they may have the ability to reinforce their offerings and provide much better shipment given that they’ll be holding their own stock. And Amazon and Flipkart would find it hard to strike back with low costs, considering that discount rates would not have the ability to run as long. Amazon and Flipkart are still the marketplace leaders and are not under instant hazard from a regional player, but these policies would make it simpler for one to rise and challenge them.