With several complexities surrounding the recent changes in the FDI policy on e-commerce, industry body Internet and Mobile Association of India (IAMAI) is all set to hold a meeting with stakeholders on January 11 to discuss the implications of the recent changes in the norms, sources told CNBC-TV18.
Senior management of about 20 e-commerce players including Flipkart and Amazon will likely attend the meeting to discuss the impact of these changes on their businesses. The IAMAI has also invited online service providers like MakeMyTrip and Oyo rooms to attend this meeting.
According to the sources, issues like inventory control by e-commerce players and sale of private labels are on the agenda.
The clarifications on the FDI policy on e-commerce stated that an e-commerce entity using the marketplace format cannot exercise ownership or control over the inventory. It also states that not more than 25 percent of the sales of any vendor or their group companies will be allowed on a marketplace e-commerce entity.
The changes in the policy also point towards ‘exclusive deals’ that e-commerce players offer on their websites. It says that the e-commerce marketplace entity “will not mandate any seller to sell any product exclusively on its platform only.”
Other issues with respect to equity investments by e-commerce players into entity and implication on sale of products are also likely to be discussed in the meeting.
The note clearly says that “an entity having equity participation by e-commerce marketplace entity or its group companies will not be permitted to sell its products,” on such a marketplace.
Member grievances are expected to be compiled in the meeting, post which a representation will be made to the government, added the sources.― CNBC TV18