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Published
Jul 22, 2021
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Consumers do not want a government ban on e-commerce heavy discounting: LocalCircles

Published
Jul 22, 2021

The majority of online shoppers do not want the government to ban or intervene in sales on e-commerce platforms, which it is considering to do in its draft e-commerce policy, according to a new survey. 

While shoppers want online sales to continue, smaller Indian traders believe it is harming their business - Alto Nivel


“The survey also brings clarity to the issue of sales, where 72% of consumers do not want the government to ban or restrict or intervene in sales on e-commerce platforms,” said social platform LocalCircles in its latest survey, the Press Trust of India reported. 
 
Shoppers in the survey said that one of the attractive features of e-commerce is value shopping, enabling people to purchase cheaper items at a time when many people are struggling with less income due to the pandemic and subsequent lockdowns. However, traders have argued that short term benefits for shoppers will cause long term negative effects on India’s economy. 

Numerous Indian traders’ and micro, small, and medium enterprise organisations have urged the government to ban deep discounting and large-scale sale events online by e-commerce giants. The organisations argue that larger businesses have huge capital reserves to facilitate such sale events but smaller, local businesses do not and so the larger businesses essentially price small businesses out of the market. This harms the livelihood of Indian traders and is bad for the county’s economy, according to the Confederation of All India Traders. 
 
The LocalCircles survey was created from a pool of 82,000 responses from shoppers in 394 Indian districts. In the survey, 62% of respondents were men and 38% were women. 

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