India’s digitization has pushed the e-commerce landscape to new heights, with a growing number of consumers relying on online platforms for their shopping needs. However, this rapid growth has also brought about various challenges and concerns related to the Monopoly of a few big marketplaces, small retailers’ interests, fair competition, logistics, and so on.
Post-COVID, the Indian e-commerce industry has been on an upward growth trajectory, and it is expected to have an annual gross merchandise value of USD 350 billion by 2030.
Indian ecommerce is expected to grow at a compound annual growth rate (CAGR) of 27 percent to reach $163 billion by 2026, almost three times the growth of the overall retail market, according to a report.
This growth is fueled by factors such as increasing internet penetration, rising smartphone usage, a growing middle class with higher disposable incomes and the government’s initiatives to promote digital payments and ease of doing business have further contributed to the expansion of the ecommerce sector in India.
As ecommerce rises with growing numbers and will boost the Indian economy, it also signifies the need for a regulatory body to monitor the ecommerce dynamic, as the monopoly of a few giant platforms is not sustainable.
This rapid growth in the Indian ecommerce industry has raised concerns about the dominance of large players and the impact on small retailers. The issue of fair competition has become even more crucial as these big players often have the advantage of economies of scale and can offer deep discounts, which smaller e-retailers struggle to match.
Ecommerce practice’s lack of transparency and the dominance of big players in e-commerce can lead to an unfair marketplace where small e-retailers are unable to compete on a level playing field, and the concentration of power in the hands of a few major players can stifle innovation and limit consumer choice.
Due to the inability of small firms to compete with giants, it is likely to lead to a monopoly for giants in e-commerce, which would adversely affect competition, innovation, and the consumer experience.
Sachin Verma, an ecommerce expert and Founder of FEDUS, said, “Establishing a dedicated regulatory body for e-commerce is crucial in ensuring fair competition and protecting the interests of both sellers and consumers. Such a body would be responsible for enforcing anti-trust laws, monitoring market practices, and promoting a level playing field. This would help foster innovation, encourage new entrants into the market, and ultimately provide consumers with a wider range of choices.”
In the ecommerce landscape, everyone is questionable to consumers, as there are numerous online platforms and sellers offering products and services, without a dedicated regulatory body, it becomes difficult for consumers to trust the legitimacy and reliability of these entities.
Furthermore, a regulatory body would also be able to address issues such as fraud, counterfeit products, and misleading advertising, further enhancing consumer confidence in the e-commerce industry, he added.
To address major concerns and ensure a level playing field, India’s e-commerce landscape needs a regulatory body similar to SEBI (Securities and Exchange Board of India), Such a body would be responsible for monitoring and regulating the ecommerce sector, ensuring fair practices, protecting small e-retailer interests, and promoting healthy competition among E-retailers.
Recently, the Confederation of All Indian Traders (CAIT) also raised concerns about protecting small e-retailers, and the government should emphasize creating an ecommerce regulatory body to monitor E-commerce practices.
(NewsVoir/ ANI)
