Government tightens norms for etailers, bars exclusive deals.


With the latest set of norms introduced by the Govt. today, Indian eCommerce is set to witness a new wave of growth. Change in norms always brings about a change in ways of doing business because the market adjusts itself.


Most certainly, the consumer drives market behaviour.


The fact that eCommerce is here to stay is something that we all agree with. The latest set of norms will affect giants like Amazon, Flipkart, Paytm, etc., but they can not stop the consumer from buying online for sure!


So what will the new wave of online growth be? A few thoughts below:


  • Brand eCommerce will drive the next wave of growth. Brand eCommerce = Independent eCommerce driven by brands themselves via their own online store.
  • eCommerce marketplaces like Flipkart, Amazon, Paytm have made early inroads and ‘grabbed enough land’ to make sure that the Indian consumer is habituated to buying online. Consumer behaviour is not going to change because of the newly introduced Govt. norms although marketplaces might be restricted in their ability to drive their own growth. But the overall Indian eCommerce industry and its size is not going to shrink.
  • Brands have also by now clearly realized the importance and potential of eCommerce to go back solely to pure offline retail. And they will figure out ways to survive and grow online outside of the norms.
  • Independent brand eCommerce gives them an opportunity to take their destiny in own hands. The technology and supply chain ecosystem in India has matured enough to let this happen. In fact, several brands on the Shoptimize eCommerce platform already have diversified and hedged their risk against purely selling online on marketplaces.
  • While small MSMEs will benefit from this move as the news article says, large brands can also benefit significantly. For example, a mobile phone brand need not get affected by the fact that exclusive launches can not happen through Amazon or Flipkart anymore. An exclusive launch can happen through its own online store. Online retail has distinct benefits in terms of product cataloging, supply chain efficiency, consumer behaviour analysis etc. and brands will surely want to continue focusing on those irrespective of whether selling on marketplaces is viable for them or not. And clearly this will mean better margins and happier customers for them.
  • The best thing to happen to brands is that they will not have to be at the mercy of giants like Amazon, Flipkart, Paytm who have really deep pockets, the ability to fund infinite discounts and therefore be capable of arm twisting brands just because they have customers on their side. This will become a level playing field. No wonder Snapdeal has welcomed this move clearly because their pockets are not as deep 🙂


2019 is going to be one super exciting year for eCommerce and for us at Shoptimize. Keep watching this space. You will get to hear about some very large global brands launching their independent eCommerce presence on the Shoptimize eCommerce platform!


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