Smaller e-commerce firms look to FDI implementation to revive fortunes

By

Maverick Martins

Published
Jul 11, 2018

India’s e-commerce sector seems to be set for a revolution following government’s decision regarding reinforcement of press note 3 which deals with the foreign direct investment (FDI) in the sector.
 

Smaller e-commerce companies have welcomed the government’s move and feel that the decision for FDI implementation will create a level playing field for all marketplaces.
 
India’s e-commerce sector is dominated by bigwigs like Flipkart, Amazon and Paytm which have often been accused of bending and breaking rules under Press Note 3 as per their convenience. The country’s seller bodies and traders have also been holding protests against the alleged malpractices by e-commerce biggies like Flipkart and Amazon across India.

The government’s decision to implement Press Note 3, which deals with foreign investment in ecommerce, is a shot in the arm for some of the small players in the industry who see this as an opportunity to revive their platforms by regaining market share from the established players.
 
“The decision of having a regulator to reinforce the Press Note 3 is indeed a welcome move, which has a potential to leave no room for any marketplace to circumvent the intent of the law while possibly adhering to its letter,” a ShopClues spokesperson was quoted as saying by Economic Times..
 
“This will certainly facilitate level-playing field for all level of marketplaces and discourage any malicious practice carried out so far by any of the operators,” the spokesperson said.
 
Snapdeal spokesperson added, “A level-playing field for small sellers will lead to balanced growth and will ensure that the gains from digital commerce accrue to millions of genuine sellers and not just to proxy sellers created by some marketplaces.”