In India we are greatly looking for deregulation of the industry so that business could run smoothly with minimum restrictions. These minimum restrictions are necessary to ensure everyone gets equal opportunity. Finally government has realised need for the same in e-commerce.
Internet is required to be free of all restrictions but when large organizations with their money power tries to kill the small business it cannot be allowed. The major reason we require the policy is this. India is land of small entrepreneurs and while startup culture has brought many entrepreneurs however with money power many retailers and online seller has affected badly.
One of the major reason for need of e-commerce policy is own brand of e-commerce companies selling the product on platform. Nothing wrong as business do expand but giving them undue advantage is incorrect. How these companies are being able to sell product below cost? Are these companies also being charged similar rate of commission, courier charges and payment gateway charges? Are these companies evaluated based on TP regulation and if yes then all retail companies would make profit at gross margin level, does this company did? There are cases where on the special day announced by e-commerce companies with major discounts these companies are given added advantage like early listing of the product, specific filter for product from such companies and listing of their product on home pages. Thought they may say that added fees are being charged to ensure arm’s length justification, but everyone knows this is sham and govt through their policy call it.
Other biggest reason why we need policy is because of the money power creating hurdles for new player to come in the industry. Take an example that someone bootstrapped it’s company with decent money to run business for a year. With this money for any business it would take 6 months to put their voice out and another 6 months to generate revenue. With such high discounts and money power, these new player would not stand a chance. There is a need to have cost audit if need be to see if they are dumping products to outset competition
In China, Alibaba proved that zero can be a business model but can discount be a business model. It seems like e-commerce companies in India are trying to prove losses can be a business model. It is surely a valuation model. There is nothing wrong on having discount at some festivals time but that discount has to be borne by seller. It cannot be 365 days. If it is then why not just reduce the price to that extent. It
At bid2buy, we are trying to build an e-commerce company with business model and not valuation model. We will have a discount at festival time but not 365 days. We will ensure sellers are charged only for services they receive so prices could be kept lower. We are ensuring seller’s individual identity is not lost. We are ensuring no seller is given undue advantage. From bidding to buying at one stop, At Bid2buy we are in our path to make a sustainable e-commerce company India deserves.