With the implementation of new FDI norms for e-commerce marketplaces, many of them have to remove certain products and follow the guidelines to avoid any violation of rules set by the government.
As home-grown e-commerce players, traders and sellers bodies are favouring the government’s move, another e-commerce marketplace – eBay – that left its Indian business is now making re-entry into the country.
The announcement could be the effect of new rules that will allow small players to have a significant share in the Indian e-commerce market.
According to eBay chief executive officer Devin Wenig, the Indian market is still in its early phases and the company is considering a comeback following the approach by other parties for a potential collaboration.
The company has already started an Indian website on New Year’s Eve where merchandise can be shipped from the US. As of now, the firm’s export business and the domestic buying experiences are live while the domestic selling experience is awaited.
This could be a path-breaking move for many companies that have shut their business due to deep discounting and monopoly over inventory and private labels.
For pure-play e-commerce marketplace model that makes money through transaction, advertising and listing fees from sellers, the government’s diktat is good news indeed.
More clarity will come when the government will release the new e-commerce policy which is awaiting approval from the Department of Industrial Policy and Promotion (DIPP).
eBay entered the Indian market in 2004 through the acquisition route and formed a strategic partnership with Flipkart in 2017. The US-based company acquired 5.44 per cent stake in Flipkart in exchange for its eBay India business for $211 million.
A year later, Flipkart and eBay broke their partnership after Walmart acquired a 77 per cent stake in the Bengaluru-based e-commerce marketplace.
While Flipkart shut down eBay India to launch a new platform called 2GUD to sell refurbished goods in the country, eBay had hinted of re-launching in the country.
The development was reported by ET.