The Dark Side of India's New eCommerce Rules | PYMNTS.com
27 Jan 2019 6:30 PM GMT
As new rules come for India eCommerce, economic nationalism may hobble giants like Amazon and Flipkart from offering discounts or investing in marketplaces.
- As has happened so far, India’s government said late last year that new eCommerce regulations would become the law of the land – at the end of this week, on Feb. 1.
- It is the smaller businesses that have held the ear of Modi’s government, which of course has had the Startup India program in place for three years.
- As was reported last month, the India Online Vendors Association said the eCommerce arena has been dominated by Amazon and Flipkart, and where the association said in a letter to the prime minister that steps should be taken to address that dominance by the two firms, asserted to be as much as three quarters of online sales.
- As the deadlines loom, Flipkart has asked for a six-month extension, and Amazon would like a four-month extension.
- In the meantime, Reliance Industries said just this past week that it would debut a new eCommerce retail platform aimed at smaller firms, and aimed at “data colonization” via the two U.S. firms.
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