Sunday November 18, 2018
Home Business Giving huge d...

Giving huge discounts gets difficult for E-retailers

0
//
Image source: www.digit.in

New Delhi: E-retailers, like Flipkart, Amazon and Snapdeal may now find it difficult to provide lucrative discounts to attract customers as the new guidelines on online marketplaces prohibit such players to influence the prices of goods and services.

While the government permitted 100 per cent foreign direct investment (FDI) in marketplace e-commerce retailing, the guidelines stated that such entities will not directly or indirectly influence the sale price of goods and services and shall maintain level playing field.

“Discounts can only be given by the owner of the goods or provider of services,” an official said.

“E-commerce guideline allows owner of inventory i.e sellers registered on marketplace to determine price including by giving discount,” Joint Secretary in the Department of Industrial Policy and Promotion (DIPP) Atul Chaturvedi said in a series of tweets.

He said the guidelines strike balance between virtual and physical stores.

“It will also end predatory pricing and will provide level playing,” he said adding the norms will empower SMEs as they can now sell their products without any physical stores and create jobs.

Industry experts too said that the guidelines on pricing may impact big e-retailers.

“Going by the current guidelines, marketplace retailers will not be able to extend lucrative discounts to attract customers.

“However, it appears that with the consent and association of the owner of the inventory, the e-retailers may yet be able to provide additional promotional discounts,” Aamir Jariwala, Secretary, E-commerce Coalition said.

Government had yesterday allowed 100 per cent FDI through automatic route in most of e-commerce retailing, a development that will boost domestic as well as foreign players like Flipkart and Amazon.

While the decision to allow 100 per cent FDI in market place e-tail — where the company only provides platform for buyer and seller to connect — will help domestic players like Flipkart and Snapdeal to attract more foreign investment, it will also open the doors for the foreign retailers like Alibaba to set shop easily.

Although the decision was widely welcomed by e-retailers, traders body CAIT strongly opposed the decision, while IT industry body Nasscom said the 25 per cent cap may prove to be “restrictive”.

Credits: PTI

Next Story

The Web Developer Requests Authorities Not To Leave Half Of The World In Dark

Despite the challenges, Berners-Lee said he was optimistic about the future of the internet.

0
internet
World Wide Web founder Tim Berners-Lee speaks during an interview at the Mozilla Festival 2018 in London. VOA

British computer scientist Tim Berners-Lee, who invented the World Wide Web, appealed on Monday for companies and governments not to leave behind half of the world population yet to have internet access, which includes billions of women and girls.

Berners-Lee told the opening of the Europe’s largest technology conference that everyone had assumed his breakthrough in 1989, that connected humanity to technology, would lead to good things – and it had for a while.

But he said the internet was “coming of age” and going awry, with fake news and issues with privacy, hate speech and political polarization, as well as a growing digital divide between those in richer and poorer countries.

Internet
Internet companies support an economy-wide, national approach to regulation that protects the privacy of all Americans. VOA

He called on companies and governments to join a “contract for the web” by next May in order to rebuild trust in the internet and find new ways to monetize, regulate and ensure fair and affordable access to the online world.

“Everything we do … to make the web more powerful, it means we increase the digital divide,” Berners-Lee, 63, told the opening of the ninth edition of the Web Summit, dubbed “the Davos for geeks,” that attracts up to 70,000 people. “We’ve an obligation to look after both parts of the world.”

Berners-Lee highlighted studies showing that half of the world population will be online by next year – but the rate of take-up was slowing considerably, potentially leaving billions cut off from government services, education and public debate.

His concerns were echoed by U.N. Secretary-General Antonio Guterres who stressed the need for a “digital future that is safe and beneficial to all” to meet the United Nation’s global goals of ending inequality and extreme poverty by 2030.

Data Privacy, internet
A rise in internet penetration has distinct positive effects on economic growth of a country. Wikimedia Commons

In 2016 the United Nations passed a resolution to make disruption of internet access a violation of human rights.

Google’s head of philanthropy, Jacqueline Fuller, said it was huge milestone for the web to reach 30 next year, adding her company was one of 50 organizations to have already signed up to the pact developed by Berners-Lee’s World Wide Web Foundation.

Other supporters include Facebook, British billionaire entrepreneur Richard Branson and the French government.

Data Privacy, internet
FILE – Zuckerberg Pushes Internet Connectivity In Address to World Leaders at APEC. VOA

“This is also a great opportunity for us,” Fuller told the Web Summit. “Women and girls are much less likely to have access (to the internet).”

Also Read: Google’s Waymo To Fully Test Driver-Less Cars

Despite the challenges, Berners-Lee said he was optimistic about the future of the internet.

“The ad-based funding model doesn’t have to work in the same way. It doesn’t have to create clickbait,” he said. (VOA)