New Delhi/ Bengaluru: Now, the Prime Minister- Narendra Modi and his government has came up with the new e- commerce policy, which has opened the doors for the foreign direct investment- FDI at 100 per cent in Business to consumer online marketplace. Moreover, this e- commerce policy is also restricting the e- commerce companies from influencing, either directly or indirectly, the sale price of goods on online marketplace.
Now this can be treated as, next time when any one will be moving to watch for any discounts on devices, or other products from online market, they would not see any such discounts and they would be as such required to come with the empty hands.
Moreover, as per the comments preferred by the CEO- Kishore Biyani, from the Future Group (the institution which is running the largest brick and mortar retail company in India), he said that “this was needed”. He further pointing the e- commerce majors, said that “they will now not only stop giving huge discounts, but also perhaps not advertise openly about big sale days”.
It was witnessed by many of us, that the E- commerce majors were offering huge discounts which was used many time to attract consumers towards their online shop. Such discounts offering, was proving to require millions of dollars from the investors to spent and also affects the offline retailers.
As per Praveen Khandelwal, the Secretary General for Confederation of All India Traders- CAIT, the e- commerce major have been “using interest- free investor money for predatory pricing”. Thus, as per him, the smaller retailer can not compete against them, by “borrowing money from banks at more than 12 per cents rate of interest.
However, though the situation was and is can be presumed changed, but the major- e- commerce entities who know how they need to find their way around these restrictions. As per Amarjeet Singh, partner- tax KPMG India, “There can be a lot of ways in which you can reward the customer apart from offering direct discounts”. Moreover, he suggest, an offer of schemes and cashback options can also be perfect measures attracting number of consumers on the online market.