Tuesday, July 26, 2022

New policy may allow only third party items on e-marketplaces.

  •  In the upcoming e-commerce policy, the conflict of interest that arises because of control of vendors' inventory by e-marketplace entities will be addressed.
  • There will be clear distinction between marketplace model and the inventory based model under the new policy.
  • Mainly focused on third party products to be put on sale in thr platform.
  • In an inventory model - the e-commerce company owns the goods and services and they are directly sold to the consumers.
  • In a marketplace model - the e-commerce marketplace offers a digital platform to facilitate transactions between buyers and sellers.
  • To address various competition related issues, such as deep discounting, lack of platform neutrality, misuse of data by platforms and non-transparent search-ranking, concerning e-commerce marketplaces, the commitee suggested that there must be 'clear definitions' for those two models.
  • An e-commerce market should not sell its own products and that sellers on the platform should only be third party sellers.

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