{"id":7356,"date":"2021-08-03T17:59:08","date_gmt":"2021-08-03T12:29:08","guid":{"rendered":"https:\/\/www.fusioninformatics.com\/blog\/?p=7356"},"modified":"2021-08-03T17:59:11","modified_gmt":"2021-08-03T12:29:11","slug":"new-india-e-commerce-rules-and-its-impact","status":"publish","type":"post","link":"https:\/\/www.fusioninformatics.com\/blog\/new-india-e-commerce-rules-and-its-impact\/","title":{"rendered":"New India E-Commerce Rules and Its Impact"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"529\" src=\"https:\/\/www.fusioninformatics.com\/blog\/wp-content\/uploads\/2021\/08\/e-commerce-India-rules.jpg\" alt=\"New India E-Commerce Rules and Its Impact\" class=\"wp-image-7357\" srcset=\"https:\/\/www.fusioninformatics.com\/blog\/wp-content\/uploads\/2021\/08\/e-commerce-India-rules.jpg 800w, https:\/\/www.fusioninformatics.com\/blog\/wp-content\/uploads\/2021\/08\/e-commerce-India-rules-300x198.jpg 300w, https:\/\/www.fusioninformatics.com\/blog\/wp-content\/uploads\/2021\/08\/e-commerce-India-rules-768x508.jpg 768w, https:\/\/www.fusioninformatics.com\/blog\/wp-content\/uploads\/2021\/08\/e-commerce-India-rules-380x251.jpg 380w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<p>Are you an etailer, or an online seller in the e-commerce platform? Then this piece of news is relevant to you. The Indian government has recently introduced&nbsp; Consumer Protection (E-Commerce) Rules,2020, that calls for certain mandatory curbs in online retail practices. Well, it all started with major complaints put forth by small businesses, brick-and-mortar traders that some e-commerce key players were flouting local laws. However, many private, public, and government agencies are expressing concerns, arguing that the very proposed consumer protection rules will affect <em>\u201c the ease of doing business\u201d<\/em>.Not only that, it will greatly impact the overall investment sentiments, too! India&#8217;s e-commerce market is estimated to grow to a massive $200B by the year 2026 <em>(source-Reuters), <\/em>but, with the new set of e-commerce rules, what\u2019s the probability of this figure? What\u2019s your take on this? Let\u2019s discuss the overall impact!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Are the Rules<\/strong><\/h2>\n\n\n\n<p>The Consumer Protection(E-Commerce) Rules,2020, applies to all e-tailers (electronic retailers) that are registered either in India or abroad, and offering goods &amp; services to Indian Consumers. <em>As per the rules:<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>An e-commerce company will have to display the overall price, the total price of goods &amp; services they\u2019ll be selling, and there has to be a detailed break-up of other charges,if any.<\/li><li>Mandatory mention of \u2018Expiry Date\u2019 of selling goods.<\/li><li>Mandatory mention of \u2018Country of Origin\u2019 of goods &amp; services.<\/li><li>Mandatory display of details about return &amp; refund, warranty, guarantee,&nbsp; exchange policies, delivery, shipment, and anything related information.<\/li><li>Sellers who are selling goods\/services through a marketplace, the above details need to be given by the concerned e-commerce entity that\u2019d be displayed on the former\u2019s website.<\/li><li>E-commerce entities cannot impose <em>\u2018cancellation charges\u2019, cannot \u2018manipulate prices\u2019, and need to provide information about all the payment methods &amp; their security, fees\/charges to be paid by users, the contact information of the payment service provider.<\/em><\/li><li>E-commerce entities have to display details of \u2018sellers\u2019 including business names, geographic address, ratings\/feedback, customer care number, and whether they are registered or not.<\/li><li>Provision of a ticket number for a complaint lodged by the consumer so that tracking is possible.<\/li><li>Inventory e-commerce entities cannot falsely advertise, cannot refuse to withdraw services or take back goods.<\/li><li>Banning of \u2018flash sales\u2019 but \u2018conventional flash sales\u2019 will continue.<\/li><li>If selling imported goods\/services, then need to go for a mandatory listing of local alternatives.<\/li><li>Mandatory registration is required with DPIIT (Department for Promotion of Industry and Internal Trade).<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Impact on E-Commerce Players<\/strong><\/h2>\n\n\n\n<p>The new e-commerce rules will be impacting all the online retailers, e-commerce players including the bigwigs, too. Due to the raised costs and other curbs, e-commerce dominant players will be forced to review their business models <em>(source- Reuters)<\/em>. Business costs will increase. One major impact will be the rule that asks for local alternatives while selling imported goods. This move is seen as a major boost to <em>\u2018Made in India\u2019<\/em> goods but not that healthy for e-commerce players. As per industry sources, this concept is all about promoting local goods but is not conducive for e-commerce platforms. <strong><em>However, it is up to you, as an e-commerce player, how to leverage the good sides of the rules levied and create an opportunity for yourself! Explore, and, Execute!<\/em><\/strong><\/p>\n\n\n\n<p>Another clause that is going to impact is the requirement where e-commerce companies\/firms need to ensure that the enterprise related to them must not be listed as sellers within their shopping websites. Also, an affiliate entity cannot sell goods to any online seller which is operating on its platform.<\/p>\n\n\n\n<p>\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00adThe new Indian E-commerce rules are seen as a government alternative to formulating a stringent foreign investment law. The result will be higher restrictions for business dealings with sellers on the part of e-commerce players. Moreover, a ban on flash sales is going to change the shopping experience for consumers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Impact on Sellers<\/strong><\/h2>\n\n\n\n<p><strong>Positive side-<\/strong> The new India e-commerce rules are going to impact sellers as well. So, if you are a seller, restrictions levied on e-commerce players to display their sellers\u2019 advertisements, to promote them on their platforms, are going to put you in the steering seat. Means, your advertisement, promotion, will be taken care of by you only, and there won\u2019t be any interference from your platform provider.<\/p>\n\n\n\n<p><strong>Negative side-<\/strong> The e-tailers, e-commerce giants cannot advertise sellers who are offering discounts. Moreover, the tight guidelines for not allowing any \u2018misleading\u2019 ads about quality, guarantee, pricing will be affecting sellers\u2019 potential to expand further. Online advertising business will be affected, too. And what about the provision of details about Country of origin(CoO)? Major e-commerce players have more than millions of products listed on their websites. So, will that prove to be conducive for sellers on their platforms? <strong><em>Again, create opportunities out of the constraints!<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Impact on Consumers<\/strong><\/h2>\n\n\n\n<p>Consumers are going to gain!<\/p>\n\n\n\n<p>Take the clause of cancellation charges &amp; explicit consent from consumers. What does that mean? Typically, e-tailers clearly highlight certain items as non-returnable during the pre-purchase stage. They offer refunds or free exchanges to consumers. But now on, they need to ask for explicit consumer consent. Someone\u2019s compromise is going to prove consumers\u2019 gains! Moreover, there will be transparency in the shopping experience as brand names will show original ones and not the platforms they are selling at. Moreover, if imported goods are for sale, like those from China or any other foreign country, then there have to be alternative suggestions ranging from Indian local goods, too. And, you know the sentiments of Indian consumers. You guessed it!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Bottomline<\/strong><\/h2>\n\n\n\n<p>There\u2019s no qualm that the new India e-commerce rules are a giant leap for promoting &nbsp;<em>\u2018Made in India\u2019<\/em> &nbsp;products in the Indian market and beyond. At the same time, the e-commerce giants are also bearing the heat of restrictions and curbs levied upon them. But the underlying intent of the very e-commerce rules is simple \u2013 <em>bringing transparency in the entire ecosystem and that is absolutely fine, fair, and genuine!<\/em> After all, disruptions are known to bring about new changes, and can we expect something big unfurling, in the e-commerce segment, in near future? Let\u2019s wait and watch!<\/p>\n\n\n\n<p>Are you an <a href=\"https:\/\/www.fusioninformatics.com\/industry\/retail-ecommerce.html\">Indian retailer or e-tailer<\/a> looking to empower your business while abiding by the new India e-commerce rules in place? <a href=\"https:\/\/www.fusioninformatics.com\/contact-us.html\">Reach us<\/a> to know more.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"Are you an etailer, or an online seller in the e-commerce platform? Then this piece of news is&hellip;\n","protected":false},"author":5,"featured_media":7359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[1977],"tags":[2046,2077,2078,1987],"class_list":{"0":"post-7356","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-retail","8":"tag-e-commerce","9":"tag-e-tailer","10":"tag-new-india-e-commercerules","11":"tag-retail"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New India E-Commerce Rules and Its Impact<\/title>\n<meta name=\"description\" content=\"As per Consumer Protection (E-Commerce) Rules,2020, e-commerce retailers,sellers,consumers are facing changes in rules &amp; regulations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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