Huge sales by e-commerce firms might soon come to an end. A government think-tank spearheaded by Suresh Prabhu (the commerce and industry minister) has arranged a draft e-commerce regulation that claimed to be the last nail on the coffin for deep discounts at the time of online sales. If the draft regulation gets approved, it will be hard for big online companies to shower deals and offers on users.
To deal with anti-competitive problems in e-commerce successfully, the draft e-commerce regulation suggests various tactics. Two of these target at controlling online costs. The draft states the first strategy, named as sunset clause, as: A sunset clause, which described the utmost duration of differential costing tactics (such as huge price offs) that are offered by e-commerce companies to entice users, will be issued.
The sunset clause might limit the capability of e-commerce firms of offering deep discounts. One more tactic in the draft targets at limiting the capability of the e-commerce marketplace firms to influence costs of products. “The limitation imposed on e-commerce companies, to not indirectly or directly manipulate the cost of sale of services and products will be expanded to e-commerce group firms,” claims the draft.
The limitation on costing are aimed at stopping the practice of foreign-financed firms bypassing rules to employ foreign cash to provide huge deals and offers. Discounts assist e-commerce firms attain loyal users. Local rivals have lifted the problem of foreign money financing discounts that makes it hard for them to compete.
Speaking of huge sales, June saw some of the biggest deals from all over the world on the best brands during the Flipkart big shopping days and the Amazon Prime day sale. Both these sales were conducted at the same time with big shopping days conducted from July 16–19 lasting for 80 Hours and Prime day conducted for 36 Hours from July 16–17.