Forget cashbacks, exclusive Xiaomi, Realme, Oppo, Honor, Vivo, other smartphone launches on Amazon, Flipkart; Here's why
New e-commerce policy: Online shopping has made life easy for people across the country in the last few years. With cash backs, EMI schemes and exclusive online launches - of tech gadgets, mostly.
New e-commerce policy: Online shopping has made life easy for people across the country in the last few years. With cash backs, EMI schemes and exclusive online launches - of tech gadgets, mostly - customers have had the best of shopping experience till now - minus the hassles of offline market hopping. All of these are set to change now. Come February 1, your online shopping experience may no longer remain what you have been used to till now. Expect disruptions, thanks to the new e-commerce policy that comes into effect from the first day of the second month of 2019.
In the last week of last year, the Union led by Prime Minister Narendra Modi had come up with a new set of guidelines aimed at addressing concerns of small offline traders who have been fearing extinction amid an e-tail onslaught. While the new policy aims to benefit small traders and clip the wings of large e-tailers, there are at least two changes that are directly connected to the customer experience. Here's what customers of e-tail giants like Flipkart, Amazon or Paytm can expect:
1. No Cashback: The new rules will not allow e-tailers offer cashback schemes to lure customers.
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The new guidelines say, "E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain level playing field."
"Cashback provided by group companies of marketplace entity to buyers shall be fair and non-discriminatory. For the purposes of this clause, provision of services to any vendor on such terms which are not made available to other vendors in similar circumstances will be deemed unfair and discriminatory."
2. No exclusive deals: The new policy will put under scrutiny exclusive deals to promote brands through flash or festive season sales. The vendors will not be allowed to sell over 25% of its product on an online platform of a single e-marketplace firm.
"E-commerce entity providing a marketplace will not exercise ownership or control over the inventory i.e. goods purported to be sold. Such ownership or control over the inventory will render the business into inventory based model. Inventory of a vendor will be deemed to be controlled by e-commerce marketplace entity if more than 25% of purchases of such vendor are from the marketplace entity or its group companies," the guidelines say.
"E-commerce marketplace entity will not mandate any seller to sell any product exclusively on its platform only," they say further.
This means, when the new rules come into effect, exclusive launches of branded smartphones on platforms like Flipkart and Amazon will become a matter of the past.
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The new rules require e-commerce marketplace entities to furnish a certificate along with a report of the statutory auditor to Reserve Bank of India, confirming compliance of above guidelines, by 30th of September of every year for the preceding financial year.
07:33 PM IST