Will New Online Shopping Rules in India Hit Your Cashback Wallets?

Online shopping has taken a hit because the Indian government has changed its rules for companies like Amazon and Flipkart. What has brought about the change in e-commerce policies, that too just a few months before India goes into General Elections?

Online shoppers will have to contend with reduced selection, higher prices and disrupted customer experience while sellers will be unable to source wholesale merchandise at scale as e-commerce players come to terms with the changes.

Because of its marketplace model, Paytm has found it hard to make sure the sellers maintain quality and fulfillment response is also lacking. 

He also says the government is not exactly discouraging investment, but wants tighter control for the sake of local sellers. Also, it’s not like the regulations have been created overnight. They have been there much before it came into the news. It’s just the decision to adopt it, less than 100 days before the elections, without any plea for extension being considered, has come as a jolt to the global giants.

He adds that while it’s easy to criticise the government for this decision, someone needed to put a check on the sort of business Amazon was running in the country.

The tighter rules, aimed at protecting small traders, may end up benefiting the country’s richest man, Mukesh Ambani, who is building a home-grown competitor.

[The Quint]


Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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