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New Delhi, Mar 27 () Some e-commerce companies on Friday partially resumed operations for the sale of groceries and essential items but deliveries to customers will be delayed, according to company officials. A leading e-commerce firm said players in the segment are coordinating with district-level authorities for curfew and lockdown passes for their personnel to resume deliveries. "E-commerce companies will be able to open one city at a time. All the players are coordinating with district-level authorities for curfew and lockdown permits which is going to take time. Some of the companies don't have enough inventory because of the lockdown which they need to source before delivery," an official of a leading e-commerce company said. E-commerce companies have been exempted from prohibitory orders during the lockdown but police in various places stopped their employees and even punished some of them when they came out for work. Flipkart on Friday said that the government and the local state authorities have provided the much-needed clarification on the functioning of e-commerce during the lockdown, clearly indicating that delivery of grocery and essential goods is permitted under the order. "E-commerce companies such as Flipkart, Amazon, BigBasket, Grofers, Zomato, Swiggy and others have been assured of the safe and smooth passage of their supply chain and delivery executives by local law enforcement authorities. "This assurance has led to several of these companies resuming their services, especially in key categories - Grocery and essentials," the statement said. The company has stopped accepting the return of essential items once sold to check hoarding of the items. While Amazon India continued to accept orders in the permitted category, it has put delivery of the orders on hold. "Considering the prevailing extensive lockdowns and restrictions in movement, we have paused our deliveries. We are taking orders only on essential products through pre-paid payment methods, while we work towards resuming deliveries soon," Amazon India website said. The company on Thursday had said that it is working with the central government and local authorities seeking urgent help with detailed on-ground operating procedures, to ensure delivery of priority goods like household staples, health and hygiene products, sanitizers, baby formula, and medical supplies safely across the country to its customers' homes without any disruption. Social media firm Local Circles in a survey conducted on March 25 and 26 across 177 districts found that 61 per cent people were unable to find essential items they required on e-commerce stores while 43 per cent people were unable to find products they required on retail stores.Grofers co-founder and CEO Albinder Dhindsa said that the company is taking every measure to ensure the delivery of essential items to customers. "After a few hiccups, we have resumed operations in Delhi, Gurgaon, Faridabad, Noida, Ghaziabad, Bengaluru, Ahmedabad, Lucknow and Kanpur with the help of local authorities. For these cities, we will now be ramping up our capacities in the coming days to fulfill the backlog of orders," Dhindsa said. He said that for the remaining cities, the company is working closely with the respective authorities and shall resume operations as soon as we get the necessary permissions. "Our team members are working around the clock to ensure support towards our customers, who are counting on us for essential supplies at their homes. We are maintaining proper hygiene and sanitation in our facilities and vehicles and are committed to serving India in this critical period," Grofers said. Online grocery seller Bigbasket also resumed booking of orders for all which it had limited to only existing customers since last few days. PRS PRS MRMR

E-commerce firms resume partial operations, deliveries to be delayed

<ul><li><keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">E-commerce</keyword> might be one of the most hotly-contested and burgeoning sectors in India right now, but it’s also being subjected to increased regulatory scrutiny and higher compliance costs. </li><li>Starting 1 October, e-commerce companies, foreign and domestic, will now have to register in every state in India in order to receive <keyword id="6357150" type="ORGANIZATION" weightage="20" keywordseo="tcs">TCS</keyword>. </li><li>The Central Board of Indirect <keyword id="6368033" type="UNKNOWN" weightage="20" keywordseo="taxes">Taxes</keyword> and Customs (<keyword id="1776484" type="ORGANIZATION" weightage="20" keywordseo="CBIC">CBIC</keyword>) has allowed foreign firms to appoint an agent to collect TCS on their behalf in states where don’t have a ground presence.</li></ul> E-commerce might be one of the most hotly-contested and burgeoning sectors in India right now, but it’s also being subjected to increased regulatory scrutiny and oversight from tax officials. This will raise compliance costs for firms in the industry, which is expected to grow eight times to $200 billion by 2028. Starting 1 October, e-commerce companies, foreign and domestic, will now have to register in every state in India in order to receive TCS (taxes collected at source), or the tax collected at the time of the sale, according to directions from the Central Board of Indirect Taxes and Customs (CBIC). They will then have to deduct 1% of the TCS before settling payments with suppliers. This will help create a paper trail and prevent tax evasion. E-commerce firms will also have a period of 10 days after the end of a month in which to pay the government their full TCS obligations for the previous month. The ruling applies to all e-commerce firms, regardless of whether they have already certified to collect <keyword id="6354679" type="DEFINITION" weightage="20" keywordseo="gst">GST</keyword> as a supplier in the state. However, there is a threshold exemption for companies with an annual turnover of less than ₹2 million. The ruling could affect foreign e-commerce firms disproportionately. They had been hoping to avail of a single registration process as opposed to multiple state registrations owing to a lack of geographical reach. However, the CBIC did allow them to appoint an agent to collect TCS in each state if they didn’t have a ground presence there. They can also registered their headquarters as their office location in these states. While the TCS can only be collected once the agent has completed the sale, it will be calculated for the month when the order takes place. From here on in, e-commerce firms will have to provide tax officials with an electronic statement at the end of the month featuring information on all sales, returns and TCS collections. They will also have to file an annual statement on 31 December.

To collect taxes, e-commerce firms now have to register in every state in India

If you say 'no' to a job offer from an <a href="http://www.businessinsider.in/searchresult.cms?query=e-Commerce+">e-Commerce</a> company, job search firms might <keyword id="387612" type="UNKNOWN" weightage="80" keywordseo="Blacklist">blacklist</keyword> you to avoid embracement. In the past three to six months, a deluge of offers from cash-flush <keyword id="35621" type="UNKNOWN" weightage="100" keywordseo="e-commerce">e-Commerce</keyword> firms has seen a proportionate rise in the number of offers being turned down by senior level executives. 
 
This left the companies stumped and head hunters red faced. As a result, various job search firms have started blacklisting such executives who have replied in negative to <a href="http://www.businessinsider.in/searchresult.cms?query=employment+">employment</a> offers in the e-Commerce firm. 
 
According to estimates from four leading search firms, the offer dropout rates for the last three months have shot up by 30-40%. For the 12-month period, it has risen by 60-80%. 
 
Senior-level candidates rejecting offers in the e-Commerce space is around 40% now, double of what it is for any other sector, with the maximum offer drops being in the product management space, followed by core IT. 
 Executive search firm <keyword id="122960" type="COMPANY" weightage="60" keywordseo="Kelly-Services">Kelly Services</keyword> had more than 20 senior candidates drop offers at the last stage in the last two months. 
 
"Candidates are offer shopping like never before. We have seen candidates looking for jobs during the notice period they are serving and when they already have an offer with another company. They try to make the best use of the notice period by getting as many offers as possible," said Kamal Karanth, managing director at <a href="http://www.businessinsider.in/searchresult.cms?query=Flipkart+">Kelly Services &amp; Kelly OCG</a>, India. 
 
Warning signals include candidates not picking up calls, family members answering the phone to say the candidate is not well. "This is a reality in the e-Commerce space as the sector gets flooded with opportunities," said Ashu Malhotra, head HR at online retailer <a href="http://www.businessinsider.in/searchresult.cms?query=Jabong">Jabong</a>. Adding to search firms' woes is companies' unwillingness to settle for the second best candidate or a back-up option. 
 
According to search experts, NIT, IIT and IIM graduates are perpetual offer droppers. Typically, talents from these schools are in demand and candidates resort to arm-twisting with potential hiring organisations. "This is exactly what happened in the IT space in 2003-04. The e-Commerce industry is at a buoyant stage and candidates are making full use of it to get the best deal," said GC Jayaprakash, executive director at RGF Executive Search. 
 
A search expert cited the case of a senior manager who dropped an offer from <a href="http://www.businessinsider.in/searchresult.cms?query=Flipkart+">Flipkart</a> at the last minute to take up an offer from mid-sized startup <keyword id="6368309" type="COMPANY" weightage="60" keywordseo="Urban-Ladder">Urban Ladder</keyword>. "People who are moving away from big companies want more responsibility, accountability, and bigger roles," said <keyword id="2480022" type="PERSON" weightage="60" keywordseo="Rajiv-Srivatsa">Rajiv Srivatsa</keyword>, founder, COO at Urban Ladder. 
 
Usually, companies are unable to retain talent because of the huge salary jump being offered by competitors or allied firms. 
 
Talent, more often than not, is getting wooed by the money that this space offers and companies at times are willing to pay up to 60-70% more to attract the right talent. The tenure of executives in any organisation has started decreasing as more companies get formed in this space and a wider variety of jobs come into the market. 
 Abhiraj Bhal, co-founder of <keyword id="3048734" type="UNKNOWN" weightage="80" keywordseo="Urban-Clap">Urban Clap</keyword>, spoke of a mid-level hire who did not show up on his first day at work, after two months of communication. "Over the past few months, the exuberance in the ecommerce space has rubbed off on the talent pool. Salaries and expectations have gone up. We have offered salary hikes of 70-80% in roles like technology and people have choices and can make companies wait and hold on and we've not been immune to this," he said. 
 
Moreover, most funded companies are willing to poach talent, and at times, offer more than what candidates demand, said Karanth. Recently, Kelly Services was working on a requirement with an ecommerce company for a product management candidate with 12 years of experience. The candidate was keen on a 40% hike. The company he interviewed with offered him 50%. The candidate, however, never joined and bargained for a hike in another company. 
 
(Image: Indiatimes)

Think twice before you say ‘no’ to offers in e-Commerce firms! Search firms might blacklist such people

New Delhi, Dec 6 () The government has made it mandatory for e-commerce companies like Amazon and Flipkart to submit FDI policy compliance report by statutory auditor by September 30 every year, a move aimed at ensuring that they follow all the norms properly.
 As per the government notification issued on Thursday, e-commerce companies have to obtain statutory auditor report by September-end for the preceding financial year.
 Section 15 of the Foreign Exchange Management Act (FEMA) deals with e-commerce entities.
 "Against Sl. No. 15.2.3, for entry (p), the following entry shall be substituted, namely-(p) e-commerce marketplace entity with FDI shall have to obtain and maintain a report of statutory auditor by 30th of September every year for the preceding financial year confirming compliance of the e-commerce guidelines," the gazatte notification said
 According to government sources, this decision will help in ensuring compliance of FDI policy in the e-commerce sector.
 The move will raise compliance cost for such companies.
 Trader bodies have been raising concern over violation of foreign direct investment (FDI) norms.
 The Confederation of All India Traders asked the government not to give in the demands of global e-commerce players and American industry chambers to amend the recent changes made to the foreign direct investment (FDI) norms for e-commerce.
 It asked the government to make it mandatory for the e-commerce companies to obtain a compliance certificate by March 31, to be able to raise funds.
 The CAIT has often complained about predatory pricing and discounts, along with other violations of the FDI policy, particularly during festive season.
 Commerce and Industry Minister Piyush Goyal had warned e-commerce companies of strict action if they do not halt predatory pricing on their platforms, flouting FDI rules.
 The issue figured in a discussion Goyal had with Amazon India head Amit Agarwal on November 5, sources said.
 A clarification of Press Note 2 issued last December had barred marketplaces from selling products from vendors in which they have an equity interest. They also can't enter into deals with any brand to sell products exclusively on their platforms. These norms came into force in February. RR DP HRS

Govt asks e-commerce firms to file FDI compliance report annually

Six years ago, Flipkart, the poster child of Indian <keyword id="35621" type="UNKNOWN" weightage="100" keywordseo="e-commerce">e-commerce</keyword>, began to scale a new way of shopping in the country. Since then, inspired by a buoyant middle class rapidly adopting the Internet, other e-com sites have started mushrooming. 
 I distinctly remember placing an order on an e-commerce site in those early days and feeling excited and giddy like a schoolgirl when the order came through in one piece. But the icing on the cake was the innovative <keyword id="611547" type="UNKNOWN" weightage="80" keywordseo="Cash-on-Delivery">cash on delivery</keyword> (COD) instead of pre-paying for the article through a credit card – something I used to do in the US. 
 Most of us now realise the opportunity at hand. About 140 million Indians are currently online, which will go up to 350 million over the next 4 years. A rising and aspirational middle class will possess increasingly higher disposable income. Research pegs the current size of the <keyword id="863306" type="UNKNOWN" weightage="100" keywordseo="E-commerce-Industry">e-commerce industry</keyword> at $1.8 billion, going up to $13.5 billion by 2017. So it makes immense business sense to start an e-commerce venture today. 
 Yet, at a systemic level, rare is the venture that has been able to raise Series A <keyword id="6357455" type="EVENT" weightage="100" keywordseo="Funding">funding</keyword>. The coming together of opportunity and <keyword id="107737" type="ORGANIZATION" weightage="100" keywordseo="Entrepreneurship">entrepreneurship</keyword> should have ideally made the perfect combination. Then how did we reach a stage where entrepreneurs are actually hesitating to start <keyword id="1105147" type="UNKNOWN" weightage="100" keywordseo="E-commerce-companies">e-commerce companies</keyword>? 
 Lurking in the shadows of these sites were men who controlled what matters most in developing an industry – <keyword id="6354840" type="PERSON" weightage="100" keywordseo="money">money</keyword>! Investors, seeing early adoption coming along, started funding anyone who ran a <keyword id="1935380" type="UNKNOWN" weightage="100" keywordseo="dotcom-business">dotcom business</keyword>. In fact, a couple of renowned <keyword id="6357097" type="COMPANY" weightage="100" keywordseo="venture-capital">venture capital</keyword> firms had put their associates on a brief to contact and meet every founder running an e-commerce portal in the country! 
 
Founders loved it. They were being courted by investors who, trying to follow largely western and Chinese analogies, wanted to pump in money into these ventures even though (and here comes the surprising part) they had no envisaged plan for profitability. 
 Hence, it became a virtuous cycle – show us customers and early traction, and take away the money. Never in the past had so many young founders (most of them without any experience in growing companies) got access to <keyword id="1013332" type="UNKNOWN" weightage="100" keywordseo="risk-capital">risk capital</keyword> in the country. Everyone was invited to the party and everyone wanted to get in. 
 
But by late 2011, investors started realising for the first time that the people investing with them (yes, they have bosses as well) wanted to see, at the least, a path to profitability. Suddenly metrics such as cash burn rate and contribution margins on an order have started becoming important. It isn’t only about customer acquisition; customer retention impacting the bottom line has also come into the focus now. 
 
Over the past 2 years, as an advisor to start-ups in the Internet sector, I have noticed how raising risk capital has become increasingly difficult. Many founders still banked on the easier ride leveraged by their predecessors, but they had been unable to come up with viable ventures. One entrepreneur, who recently contacted me for advice, kept insisting that he doesn’t need to show early traction to raise capital. When I protested, he duly named many entrepreneurs who had, perhaps, raised capital in an easier environment and how he was better than them. 
 But investors today are wary of anything in e-commerce. In fact, one investor with a leading <keyword id="413887" type="UNKNOWN" weightage="100" keywordseo="VC-firm">VC firm</keyword> confided in me his firm’s efforts to stay away from this sector. As a result, it will be challenging for founders to raise capital until about the end of 2015. 
 But all is not bleak. There is no dispute regarding the opportunity. While North America, Europe and China have e-commerce websites with significant scale, India is seen as the last bastion. With more people coming online every day and consumption patterns changing, the growth potential is, indeed, immense and entrepreneurs can still start <keyword id="1472369" type="UNKNOWN" weightage="100" keywordseo="e-commerce-ventures">e-commerce ventures</keyword> that will attain significant scale in the next decade. 
 
This offers immense opportunity to create viable, inherently profitable ventures, which can deeply differentiate themselves from competition. In fact, the heavy adoption of mobile in India presents the greatest opportunity in this respect. So much so that it may be wise to gravitate towards mobile-first strategies, figuring out how to appeal to consumers whose first screen to discover this digital world will be a low cost smartphone. 
 
These are the ventures that will not only find it easier to raise capital but can also develop viable businesses in the next 36-48 months. Innovation around this space and cross-pollination of the changing reality with traditional e-commerce principles could be the need of the hour. 
 
About the author: Jatin Modi runs FrogIdeas, a digital strategy and marketing firm. Earlier, he was also the head of strategy at Yebhi. Twitter@PoornViram.

Why
E-commerce Is Going Through Dark Days In India

<ul><li>Chinese <keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">e-commerce</keyword> firms have come under the scanner from the Indian government for their sales to Indian customers. </li><li>The companies, which reportedly include the likes of Ali Express, <keyword id="6016374" type="UNKNOWN" weightage="20" keywordseo="Club-Factory">Club Factory</keyword> and <keyword id="5573003" type="PERSON" weightage="20" keywordseo="Shein">Shein</keyword>, have allegedly skirted customs duties and GST tax payments by positing these purchases as “gifts”. </li><li>As a result of allegedly skirting duties and taxes, the goods sold on these platforms are relatively cheaper than the goods sold by Indian e-commerce companies like <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>.</li></ul>Chinese e-commerce firms like Ali Express, Club Factory and Shein have come under the scanner from the Indian government for their sales to Indian customers, according to a <a href="https://economictimes.indiatimes.com/industry/services/retail/government-tightens-check-against-chinese-e-comm-players-escaping-taxes/articleshow/68731744.cms">report </a>in ET. The companies have allegedly skirted customs duties and GST tax payments by positing these purchases as “gifts.” Any gifts remitted to Indians that cost less than ₹5,000 aren’t eligible for taxes or custom duties. As a result of allegedly skirting duties and taxes, the goods sold on these platforms are relatively cheaper than the goods sold by Indian e-commerce companies like Flipkart. Their prices are also listed in rupees and they don’t send invoices with the deliveries. Furthermore, these e-tailers don’t ask for government-issued identity proof from Indian customers. As part of the clampdown, the Department of Industrial Policy and Promotion (DIPP) has asked post offices and courier to track and monitor the shipment of goods from <keyword id="1334" type="LOCATION" weightage="20" keywordseo="China">China</keyword>. Prior to this, only the customs department was engaged in tracking and assessing physical shipments from China. A source told ET that around 200,000 daily orders on Chinese online retail platforms from Indians escape duties and taxes. Following an initial crackdown, the volume of these illicit fell by 40%. This is expected to come down even further as a result of the latest actions. In addition, Chinese e-commerce companies have also been required <a href="https://economictimes.indiatimes.com/industry/services/retail/government-tightens-check-against-chinese-e-comm-players-escaping-taxes/articleshow/68731744.cms">to register their operations domestically</a> - bringing their <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> sales more clearly under the government’s jurisdiction. The move is timely. The amount of cross-border e-commerce sales between the two countries <a href="https://www.businesstoday.in/current/economy-politics/govt-mulls-restrictions-on-purchases-from-chinese-ecommerce-players-report/story/299517.html">is expected to double</a> by 2021. SEE ALSO: <a href="https://www.businessinsider.in/indian-online-shoppers-are-going-to-double-their-spend-this-year/articleshow/68699133.cms">Over half of India's 120 million shoppers may double their spend this year</a> <a href="https://www.businessinsider.in/amazon-india-finds-way-around-new-e-commerce-rules-for-cloudtail-and-appario/articleshow/67831376.cms">Amazon may have found a way around India’s new e-commerce rules</a>

India is cracking down on Chinese e-commerce firms like AliExpress, Club Factory and Shein for tax and duty evasion

<ul><li>A draft policy for India’s burgeoning <keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">e-commerce</keyword> sector is expected to be finalised by the end of the year. </li><li>A key proposal calls for opening up e-commerce firms to 49% foreign ownership, only if they source domestically-produced goods. </li><li>Since 2016, the government has allowed 100% foreign ownership in firms that employ the marketplace model, like <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>. </li></ul> A draft policy for India’s burgeoning e-commerce sector has been in the works for a while. While a government committee, comprising nine sub-groups and led by Suresh Prabhu, the Minister of Commerce and Industry, is putting the finishing touches to the policy, a number of key proposals of have been revealed. And one, in particular, concerns the government’s “Make in India” scheme. An FDI-focused taskforce led by Rita Teaotia, the secretary of the Commerce Ministry, has suggested allowing e-commerce platforms that utilise an “inventory model” to be as much as 49% foreign-owned. Currently, only food retailers are afforded this ownership allowance. E-commerce firms that use the inventory model manage their own inventory and actually own the products that are put up for sale, selling them to consumers directly. However, foreign entities need to source these products domestically and the founder of the business needs to be an Indian resident. The move will likely give small-and-medium enterprises a boost and attract even greater investment to India’s e-commerce sector. The proposal will require the creation of an agency tasked with accrediting “made in India” products. Currently, e-commerce platforms that have even a minimal foreign ownership aren’t allowed to deploy the business-to-consumer model. Since 2016, the government has allowed 100% foreign ownership in firms that employ marketplace models, like Flipkart, which was recently purchased by Walmart. Companies employing the marketplace model act as facilitators between buyers and sellers. So, Flipkart doesn’t directly sell the product but gives registered companies a chance to sell their products. A national regulator The government committee has submitted a number of other proposals. These include a recommendation that calls for the data of Indian consumers be stored “exclusively” in India within two years. This precludes data not collected in India and the recommendation is line with the draft data protection bill released by the by the Srikrishna panel earlier. Additionally, the draft policy also calls for the establishment of a national regulator for the e-commerce industry. This will be vital to ensuring that the interests of consumers and small businesses are safeguarded, especially amid fears that India’s e-commerce sector would be flooded with foreign-made products. The regulator will also ensure that all foreign investment caps are complied with. The e-commerce policy is currently being fine-tuned, before being opened up to stakeholder consultations. It is expected to be finalised by the end of the year.

India may loosen FDI rules in the e-commerce sector to give “Make in India” a boost

New Delhi, Nov 20 () Trade associations observed "National Protest Day" on Wednesday and held protest dharnas against "unethical trade practices" of leading e-commerce firms like Amazon and Flipkart in over 700 cities across the country, CAIT said.
 The traders' body, which has been alleging that these e-commerce firms were adopting unethical trade practices and are openly violating the government's FDI policy, claimed the protests were attended by lakhs of traders.
 "The demonstrating traders said India's e-commerce market has been made highly toxic by Amazon and Flipkart with their unethical trade practices and open violation of the government's FDI policy," the Confederation of All India Traders (CAIT) said.
 According to the traders' body, the protestors demanded that the government impose an immediate ban on e-commerce portals of both Amazon and Flipkart.
 B C Bhartia, National President of CAIT said traders have no objection to Amazon and Flipkart conducting business in India, but like merchants, these e-commerce firms should also follow every provision of foreign direct investment (FDI) policy of the government and other tax laws.
 The traders' body demanded that Amazon and Flipkart be asked to shut their portals till the time these firms make their portals fully compliant with FDI policy and other laws.
 It has also sought a probe into the business model, accounts and inflow of foreign investment and its disbursal by both the companies. RSN DRR

Traders' body holds nation-wide protests; demands ban on Amazon, Flipkart

The launch of <keyword id="18635" type="CITY" weightage="100" keywordseo="Amazon">amazon</keyword> go, has brought the conversation back to <keyword id="35621" type="UNKNOWN" weightage="100" keywordseo="e-commerce">e-commerce</keyword>. For the last one month, India has been talking about de-monetisation; which in itself is a fillip to digital buying. But when global technological breakthroughs like amazon go, change the paradigm, and challenges a whole industry- how do local players cope? 
 Theres no denying that Amazon and <keyword id="302749" type="COMPANY" weightage="100" keywordseo="Alibaba">Alibaba</keyword> are global commerce brands. Theres also no denying that they have major advantages, when they enter new markets; especially as they have operated successfully in various geographies have some unique advantages while entering into new local markets. 
 And free markets are good news. Most developing counties are now easing the Foreign Direct <keyword id="6355120" type="ORGANIZATION" weightage="100" keywordseo="investment">Investment</keyword> routes and with the western markets maturing, <keyword id="2801312" type="UNKNOWN" weightage="100" keywordseo="global-e-commerce">global e-commerce</keyword> firms are constantly looking more attractive markets elsewhere. Euromonitor estimates that Global e-commerce sales went up from US$ 994 Billion in 2015 to US$ 1155 Billion in 2016 and is expected to touch US$ 1506 by year 2018. 
 
As more and more e-commerce firms get the global tag, lets look at factors that give global commerce firms an added edge. 
 
1. Proven customer value preposition: Global e-commerce companies know how to capitalize on their distinct customer value preposition well. This also helps in fast and effective positioning of the company as the new customers would know what to expect. If handled suitably this can be a great advantage as the company need not invest more resources in customer education and can benefit immensely from the existing awareness and image even while entering in the new local markets. 
 
2. Time-Tested portal and logistics operations: The success of an e-commerce enterprise depends on how well the company handles and integrate the web portal operations with fulfilment and logistics. Global companies have tried and tested approaches that help them to scale up operations effectively. Their pre-existing Information systems and business process alignment is a major strength. They can replicate their best suited practices in the new local markets while a new local player has to go through this critical cycle of learning which can put the local player in a stark disadvantage. In the context of global e-commerce, perfection in the alignment of IT and business process is indeed the ‘silver bullet’. 
 
3. Knowledge and know-how: Global e-commerce companies also come with a vast knowledge and experience of previously entered markets. This provides valuable customer insights and companies develop their intellectual property which helps them in serving newer markets swiftly as compared to new local players. 
 
4. Minimal Investment in additional e-commerce infrastructure: Technically it is possible for global e-Commerce companies to roll out their new country specific e-commerce portals on the fly. As they have already dedicated e-commerce infrastructure for their existing operations across geographies, it is not difficult to set-up fully functional country specific web portals. Of course this has to be adequately supported by local business operations as is needs the actual ‘boots on the ground’. However, the IT investments needed for an incremental portion of shared infrastructure is minimal. On the same note, IT security, payment and transaction handling capabilities also need not be reinvented for a new market entry. 
 
5. Diverse international talent pool: Global e-commerce companies also generally have diverse talent pool to handle intricacies of new regional and cultural setup while entering into local markets. Regional and cultural sensitization is extremely important to align well with new local markets. 
 
6. Appetite for acquisitions: Sometimes global firms venture into major acquisitions to support their local market entry; and they know what to look for. They have their global operations to fund or support such strategies. Successful local or small firms often are seen as acquisition targets by such global e-commerce companies. 
 
7. Penchant for diversification and evolving new marketspaces: To support local operations the global players often take a mentor approach; they tend to create new marketspaces to facilitate e-commerce between new stakeholder communities like Business-to-Business, Consumer-to-Consumer, reverse auctions etc. E-Bay is a classic example where they have ventured in to new countries aggressive acquisition during the last decade. 
 
However, it is important to note that there are some exceptions, some peculiar geographies (such as China, Russia etc) where some of the above cited advantages may not be obtained fully. Such countries are peculiar because of various reasons, most notably because of their regulatory restrictions or limited ease of doing business. Multinational e-commerce players successful elsewhere may not get an easy foothold in such countries because of either the governmental control over markets or lack of transparency over economic and market policies. 
 
So if an amazon or flipkart or snapped want to enter these countries, from a cultural, social and language perspective,regulatory perspective; such markets are inherently difficult to enter. Amazon’s typical path to success – buying market share – has been repeatedly blocked since it entered China in 2004. Analysts peg Amazon's share of the Chinese online retail market at less than 1.5 percent. The situation became so bad, that Amazon had to open a store on rival Alibaba’s Tmall platform, where it pays fees to the Chinese e-commerce giant! 
 
Largely, in open economies, advantages such as agility and relatively smaller size that local players have, are edged out by the massive scale of global e-commerce companies. In a nutshell, its all about the batting turf. 
 
(About the Author: This article is authored by Prof Dhrupad Mathur, who is Astt. Dean – Executive MBA,SP Jain School of Global Management, Dubai)

How behemoth global e-commerce flex their muscles

New Delhi, Apr 27 () E-commerce firm Paytm Mall will partner around 10,000 grocery and small shops in over 100 cities over the next few weeks to increase local deliveries, the company said on Monday. The e-commerce firm claims to have over 1 lakh merchants already on board. Paytm Mall said, "It will partner with over 10,000 kirana stores, small shops, and businesses for hyperlocal deliveries. The company has been investing in scaling up its hyperlocal operations over the past few weeks and is now offering delivery of grocery essentials in more than 100 cities across the country and plans to scale it to more cities within the next few weeks." E-commerce firms have been flooded with orders during the lockdown leading to delay in deliveries of product. Most of the e-commerce firms are operating in limited cities. According to Paytm Mall, there has been a massive uptick in the sales of grocery essentials from tier-II and tier-III towns. Cities including Indore, Ahmedabad, NCR, Bengaluru, Lucknow, Pune, Chennai, Ludhiana, and Bathinda have all seen a rise in orders. "Our objective is to connect neighbourhood offline stores to interested customers far and wide through our e-commerce platform. During this time of crisis, we want to ensure that our merchant partners do not lose out on business. Our tie-ups with small businesses would ensure that service our customers faster and hyper-locally," Srinivas Mothey, senior vice-president, Paytm Mall, said. The company said leading logistics players, including GATI, Ecom Express, Delhivery, Bluedart and FedEx, are working with Paytm Mall. The company said that as more fulfilment and delivery executives of logistics partners join back to work, more orders would be eligible for same-day delivery. PRS HRS

Paytm Mall to partner 10,000 more shops for hyperlocal deliveries

<keyword id="319719" type="COMPANY" weightage="80" keywordseo="Myntra">Myntra</keyword>’s sales dipped by 10% after it turned <keyword id="235499" type="ORGANIZATION" weightage="80" keywordseo="APP">App</keyword> only last week. This can avert key rivals <keyword id="6354742" type="COMPANY" weightage="80" keywordseo="Flipkart">Flipkart</keyword>, <keyword id="18635" type="CITY" weightage="80" keywordseo="Amazon">Amazon</keyword>, <keyword id="541988" type="COMPANY" weightage="80" keywordseo="SnapDeal">Snapdeal</keyword> and <keyword id="6388367" type="COMPANY" weightage="80" keywordseo="Jabong">Jabong</keyword> from shifting base entirely to mobile as of now. 
 
There is a broad consensus among e-commerce experts that the changeover is due to the sharp inflow of smartphones in the country. There is no doubt apps can boost business by offering more personalized shopping experience. It’s the future of online shopping. 
However, the future is not yet here it seems. 
 
“It is up to individual companies to decide whether to go App-only based on their products and consumer profile. However, currently it is sensible to keep all channels open”, says Sandeep Ladda, Leader, Technology Sector Practice at PwC India. 
 It’s true that <keyword id="6378791" type="TECHNOLOGY" weightage="80" keywordseo="3G">3G</keyword> mobile users are dependent on telecom companies’ tariff plans. Broadband is definitely more affordable. One is mobile, the other cheap. What would India go for is anyone’s guess. 
 
Also, some shoppers are more comfortable using desktop versions. It allows them to compare prices and products across sites seamlessly and make an informed choice. They won’t be too keen to shift to App immediately. 
 
“A consumer would want more options. Today, consumer is king, and there are options galore in India. It’s not like Alibaba in China where you’re forced to shop on App”, Mr. Ladda reaffirms. “If costs for maintaining multiple platforms are exorbitant, and the rewards not so high, only then one can take a call”, he says. 
 
The numbers don’t lie either. Only 13% of mobile subscribers are on 3G and 4G networks, a study by Facebook’s internet.org found in February. That means a bulk of the consumer base is still using broadband. 
 
Myntra shut down its website last Friday. It supposedly receives 90% traffic and 70% orders from its app. 
 
(Image credit: Indiatimes)

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