No inventory ownership, directly or indirectly, is allowed by online marketplaces: Snapdeal CEO
Press Note 3 articulates that no discounting is allowed and that no inventory ownership directly or indirectly is allowed by e-commerce marketplaces, said Snapdeal co-founder & CEO Kunal Bahl.
"The discussion has been quite straightforward that no discounting is allowed and the fact that no inventory ownership, directly or indirectly, is allowed by online marketplaces,” said Bahl.
He said there is a lot of concern about whether it is being effectively implemented. And if not, what can be done.
Bahl was talking to the media on the side-lines of think-tank meeting organized by the Commerce Ministry over e-commerce policy.
During the meeting also he raised the issue of e-commerce ventures providing heavy discounts to customers and violation of marketplace model where no inventory ownership is allowed.
He said Snapdeal works on the marketplace model in which they allow small business, retailers, shopkeepers to sell their products through the website and get access to the buyers across the country.
The commerce and industry ministry notifies FDI policies through press notes. Press Note 3, which was released in 2016, enlists guidelines for foreign direct investment in the e-commerce sector. (KNN Bureau)