As India prepares to reconsider
the ban on foreign investments in the country’s e-commerce sector, two
of the world’s biggest e-commerce companies — Amazon and eBay — are
anxiously hoping to conquer what they refer to as their last frontier.
India’s Department of Industrial Policy and Promotion (DIPP) has to share feedback on Sources at Amazon India and eBay’s operations in the country have told us that both the companies are aggressively preparing their pitches urging the policymakers to revoke the e-commerce ban.
So far, both Amazon and eBay have had no choice but to operate as online marketplaces in India, limiting their ability to compete effectively with local rivals such as Flipkart. In the marketplace model, companies such as eBay do not own any inventory, or sell any of their own merchandise to Indian shoppers. They are only allowed to offer products from third-party sellers.
In February 2013, Amazon’s global vice president, Paul Misener, had also met with an Indian trade minister,
This is what the Indian laws say on foreign investment in e-commerce:
E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in Business to Business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well.
India’s Department of Industrial Policy and Promotion (DIPP) has to share feedback on Sources at Amazon India and eBay’s operations in the country have told us that both the companies are aggressively preparing their pitches urging the policymakers to revoke the e-commerce ban.
So far, both Amazon and eBay have had no choice but to operate as online marketplaces in India, limiting their ability to compete effectively with local rivals such as Flipkart. In the marketplace model, companies such as eBay do not own any inventory, or sell any of their own merchandise to Indian shoppers. They are only allowed to offer products from third-party sellers.
In February 2013, Amazon’s global vice president, Paul Misener, had also met with an Indian trade minister,
This is what the Indian laws say on foreign investment in e-commerce:
E-commerce activities refer to the activity of buying and selling by a company through the e-commerce platform. Such companies would engage only in Business to Business (B2B) e-commerce and not in retail trading, inter-alia implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well.
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