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On Friday, the Interior Ministry said that all stores in residential and market complexes outside the municipal limits and all neighborhoods, independent stores and stores in residential complexes within the municipal limits of non-containment zones may open during the closing. This relaxation does not apply to shopping centers of one or more brands.
This government note was interpreted by some e-retailers as an indication that e-commerce could also sell all products, prompting the government to issue a clarification reiterating that e-commerce companies can only sell essential items.
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“The sale by e-commerce companies will continue to be allowed only for essential goods,” the Interior Ministry spokesman tweeted on Saturday.
This has upset e-sellers as the government changed its stance on selling nonessentials online last Sunday saying it will create a level playing field between offline operators and online platforms. Merchant organizations like the Confederation of All India Traders (CAIT) have supported the government’s stance of allowing e-commerce platforms to sell only essential products while allowing offline stores to open now.
Several e-commerce executives believe that the current measure does not provide the intended playing field provided by the government, and that online ordering can help meet social distancing guidelines.
“A phased opening delivery of non-essential goods through e-commerce will help meet consumer demands, which include items that will enable them to work from home, stay in touch with others, and also address rising temperatures across the globe. country. E-commerce can help meet these requirements in a safe and secure manner while ensuring social distancing and allowing the government to continue its efforts to contain this situation, “said a Flipkart spokesperson.
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Both Flipkart group and Amazon India, through trade organizations such as FICCI and IIC, have petitioned the government, at least, to allow more items for online sales as consumer needs change. Various home work, electronics, and kitchen appliances are in high demand, electronics retailers have said. In addition to the grocery store, the government is allowing online sales of hygiene products for men and women, along with fans and educational books for children.
“Electronic commerce offers the safest way for sellers / retailers to meet the needs of citizens and guarantee social distancing. We are committed to keeping citizens safe and urge the government to allow e-commerce to play its role in the joint fight against the pandemic by enabling the supply of all the goods that people need for an extended period, “said a spokesman for Amazon India The company added that e-commerce would reduce the number of people who need to retire, while helping hundreds of thousands of small businesses boost their livelihoods in these difficult times.
On Monday TOI reported quoted estimates from Forrester that e-commerce growth in India could drop to zero after the government changed its stance to allow online sales of non-essential products. Products, considered non-essential, contribute 80 to 90% of gross online sales. This can also lead to companies firing or suspending supply chain personnel. Smaller independent merchants have had to delay their employees’ wages without new sales since the closing began on March 24.
