Uniform approach to
retail sector needed to achieve $1 trillion exports vision
Amazon and Walmart’s
Flipkart are playing a critical role in MSME’s growth
Onboarding challenges on Indian e-commerce platforms is a deterrent
India’s approach to
e-commerce regulation risks undermining Micro, Small, and Medium Enterprise
(MSME) growth in the country. By focusing on only one segment of the market,
current regulations may unintentionally hamper MSME competitiveness and seller
autonomy. A cohesive regulatory framework is necessary to ensure MSMEs can
compete fairly, boost transparency, and support India’s economic vision of
reaching $1 trillion in exports.
The Policy Consensus Centre (PCC) hosted a webinar
today on "Unlocking Seller Autonomy: Ensuring Transparency and Fair
Competition," that brought together experts from academia, research
institutions, and the e-commerce sector to address critical regulatory
challenges impacting MSMEs in India’s e-commerce landscape. It also explored
disparities between regulatory approaches and their effect on MSMEs'
competitiveness and autonomy in the digital marketplace.
Speaking at the webinar, Ms. Nirupama
Soundararajan, Founder of Policy Consensus Centre, said, “The
Competition Commission of India (CCI) and regulators must expand their
perspective beyond just foreign players and consider practices across the
entire retail sector. It’s essential to develop a mature understanding of how
these practices impact competition and fairness. Achieving parity across the
board is critical for fostering a level playing field that empowers all
businesses, regardless of their origin. Only then can we ensure that the
interests of MSMEs and independent sellers are truly safeguarded in our
evolving marketplace.”
Regulatory focus on large online platforms can
create a flawed perception of market dominance, panelists argued. Ms. Meghna
Bal, Director, ESYA Centre emphasized, “An emerging trend in
antitrust is the tendency to narrow the market scope, which inadvertently
increases the likelihood of large firms being labeled as dominant. This focus
on large online marketplaces as dominant players is fundamentally flawed. As retail
evolves, especially online retail, we see many joint ventures increasingly
concentrated in the hands of a few players, spanning both offline and online
sectors. This reality underscores the need for a nuanced understanding of
market dynamics considering complexities of both retail formats.”
During the event, a seller on Walmart’s Flipkart
shared her experience, stating, “We generally have the freedom to set our
own prices, but recently, there’s been an issue. Locking prices based on an
average of the last 6–12 months and binding us to that is unfair.” The
seller also raised concerns about onboarding practices by Indian e-commerce
players like Reliance and Tata, highlighting challenges faced by independent
sellers in navigating these platforms.
Mr. Lloyd Mathias, Business Leader, Angel Investor
and Business Strategist noted, “To foster a fair and competitive marketplace, we need more
regulatory stability and robust oversight on unfair trade practices. Sellers
should not be held to ransom by platforms dictating price points or using
threats regarding pricing operations. Just as we hold the offline world
accountable, we must extend that scrutiny to online platforms, where unfair
trade practices can weaken seller autonomy. Furthermore, we must recognize that
there’s no place for nationalism in consumer markets; the focus should be on
ensuring fair competition that benefits all stakeholders.”
The panel concluded by emphasizing how e-commerce
platforms play a vital role in empowering MSMEs and independent sellers, and
their success depends on fostering good business practices that uphold seller
autonomy. For the digital marketplace to thrive, platforms need to streamline
processes and maintain open, ongoing engagement with sellers. This means
regularly seeking feedback, making continuous improvements, and addressing
sellers’ needs proactively to make doing business easier. When e-commerce
platforms prioritize transparent and seller-friendly practices, they protect
the autonomy that is fundamental to fair competition and help cultivate a
balanced, thriving ecosystem that benefits both sellers and consumers.
About Policy Consensus Centre (PCC):
The Policy Consensus Centre is a leading think-tank
focused on promoting dialogue and solutions for critical policy challenges in
India. Through research, advocacy, and collaboration, PCC strives to foster a
policy environment that encourages innovation, competition, and economic
growth.