Get All Access for $5/mo

E-Commerce Marketplace Are Only Allowed To Sell Third-Party Products On Their Platforms The parliamentary standing committee advised that there needs to be a clear definition of the two models, inventory-led and marketplace

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

New e-commerce policy, reportedly, focuses to bring a proper distinction between marketplace model and inventory-based model. It is said to ensure that e-commerce marketplaces are only allowed to sell third-party products on their platforms.

According to a Business Standard report, DPIIT has informed the parliamentary standing committee on commerce that the conflict arises due to the e-marketplace entities control of vendors inventory would be addressed in the proposed policy. It is also advised that there needs to be a clear definition of the two models, inventory-led and marketplace. This is to address the competition-related issues including deep discounting, lack of platform neutrality, misuse of data and non-transparent search ranking.

As per reports, the standing committee said in the Rajya Sabha, "The e-commerce entity should be the only seller on such an e-commerce store platform and there should not be any third-party seller. If an e-commerce company wants to run both the models, they should use distinct branding for each of the platforms."

"E-commerce firms should ensure that none of their related parties and associated enterprises are listed as sellers on their shopping websites, and no related entity should sell goods to an online seller operating on the same platform," stated in the draft of e-commerce rules released last year.

According to market studies, India's e-commerce market is projected to surpass $400 billion market size by 2030 with a CAGR of 19 per cent.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business Culture

You'll Always Have Anxious Employees if You Don't Follow These 4 Leadership Tactics

Creating a thriving workplace environment hinges on the commitment of company leaders to nurture and inspire their teams.

Growing a Business

How to Determine The Ideal Length of Your Marketing Emails Your Customers Will Actually Read

Wondering how long your marketing emails should be? Here's what consumers say — so you can send them exactly what they like.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.