In 2015, e-commerce contributed significantly to the growth in television advertising revenues.
For the first time, godowns, warehouses or workplaces related to packaging activities have been proposed to be covered by the law
Retailers Association of India (RAI), one of many saying it is a representative body for the segment, says it will move court if online companies do not adhere to the guidelines on foreign direct investment (FDI) related to e-commerce marketplaces.There arent many options left if the norms are not adhered to, said B S Nagesh, chairman.Kishore Biyani, founder of the Future Group, said e-commerce companies such as Amazon and Big Basket were flouting the norms despite the recent clarifications. ''Big Basket is totally illegal in its operations," he said. "Entities backed by foreign funds are doing business freely but we (brick and mortar retailers) are not allowed to get FDI in the business."On March 29, the Union govenment said it would allow 100 per cent FDI in e-commerce marketplaces but none in inventory-based businesses. The guidelines put a cap of 25 per cent on every vendor's sale on a marketplace platform. And, that marketplace platform owners should not influence the sale price .
Legal experts believe a company would have to either restructure the business by a slump sale or a court process
Sitharaman said the market is free and the government does not believe in interfering in it
After 100% FDI, DIPP has put a condition an e-commerce entity will not be permitted more than 25% of sales through its marketplace from one vendor or their group companies
Nowhere do the new DIPP guidelines mention discounts or predatory pricing in order to maintain a level playing field
The guidelines will ensure a level playing field between e-commerce companies and brick and mortar retailers, but at the same time it take away the fun from online shopping
Valuation slide set to pave way for consolidation
Despite having over 400 million Internet users in India, the truth is only about 10 per cent of them transact online
NDRC will work with Alibaba in more than 300 rural areas to develop e-commerce