How government pans to finish Amazon’s e-commerce dominance

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Whether it’s soap or clothes, perfume or curtains, from budget items to luxury products, everything is available online. You can order any item from the comfort of your home. In the past few years, the e-commerce market has grown rapidly in the country. According to the FIS 2023 Global Payments Report, India’s e-commerce market was worth $83 billion in 2022, and it is expected to reach $150 billion by 2026.

Along with the growing market, the world of e-commerce has also faced several challenges. For example, the dominance of certain companies in the market and the lack of equal opportunities for small sellers. In order to address these challenges, the government has prepared a draft e-commerce policy with the aim of resolving this issue. It is preparing to implement it soon. The draft introduces uniform rules for e-commerce companies, which will be applicable to companies like Amazon. The same rules will also be applicable to Indian e-commerce companies. E-commerce companies will be prohibited from acquiring stakes in companies that sell goods on their platforms. Furthermore, companies will not be able to sell their own products on their platforms. This will eliminate the monopolistic control of companies like Amazon and Flipkart and provide a level playing field for Indian companies to compete.

E-commerce is a critical sector for India’s economic growth and development. Recognizing its potential, the government is closely monitoring the evolving e-commerce space. This is why the government acknowledges the need for a regulatory framework for the e-commerce space to protect activities such as buying, selling, marketing, and distribution. Simultaneously, the aim is to create equal opportunities for all.

The objective of the new e-commerce policy is to provide equal opportunities to all sellers. This policy will not only prevent e-commerce sites from owning sellers on their platforms but also ensure that consumers see product catalogs and search results in a fair and transparent manner. Allegations have been made that companies like Amazon and Flipkart give preferential treatment to certain sellers, with their products appearing at the top of search results. These e-commerce companies also have their own in-house brands, which have sparked controversies. Since these prominent e-commerce companies have access to complete consumer data, including preferences, dislikes, and budgets, they use this information to promote their own brands and prioritize them in search results. Both Flipkart and Amazon are currently selling a wide range of products under their respective brands, including air conditioners, washing machines, cooking oil, and clothing, among others.

Finally, speaking of the benefits for consumers, if small sellers are given an equal opportunity for their products, consumers will also benefit. Even if the dominant companies in the market face challenges, consumers will benefit. The more competition there is in the market, the more leverage consumers will have. There will be improvements in aspects such as price and quality as well.