Don’t even try : Definition of E Commerce

 

 

Context :

India asks WTO to work on clear definition of e-commerce trade in goods, services

( Deccan Herald  /  29 Oct 2023 )

Extract :

India has asked the WTO members to work on a clear definition of e-commerce trade in goods and services as it would help provide developing countries a policy space to make decisions on the fast-growing sector, an official said.

At present, there is a difference of understanding about the subject between developed and developing member countries of the World Trade Organization (WTO). The issue came up for discussion during a recent meeting of senior officials of WTO members...

"India stated that the definition should be clear about digital goods and services because customs duties are there on goods and not on services. The Western world wants no customs duties, and on the other hand, developing countries want that policy space to impose the duties," the official said.

Though certain WTO members have been discussing the e-commerce issue since 1998, there is no clear-cut definition of the subject. A group of 80 countries are discussing an agreement on the subject, but India is not part of that. The US has also recently opted out of those talks to frame global rules on e-commerce at the WTO.

"Now, goods and services are embedded, then there is a definitional problem. For example, Netflix is showing a film in India. So, the film is a product, but the membership that Netflix is taking to show the film is a service. So, it is very difficult to make that distinction between goods and services," the official, who did not wish to be named, said.

"There is no clarity on e-commerce trade in services. So, because of the lack of clarity, there is an apprehension...

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My  Take :

 

2015 ( 4 )

Defining E – Commerce                                     [  14  July  2015  ]

If You cannot lick them ; Join them                  [  24  July  2015  ]

WHO WILL OBSOLETE WHOM ?                         [  20  Aug  2015  ]

E - Commerce is Easy Commerce !                   [  15  Nov  2015  ]

 

2016 ( 3 )

Lessons from History ?                                       [  07 Jan  2016 ]

One Day , Everything will Sell Online !               [  29  Mar  2016  ]

Missing the Woods for the Tree ?                       [ 12  Aug  2016  ]

 

2017 ( 3 )

Level-Playing Field is a Double Edged Sword !      [  8  Feb  2017  ]

A New Way to E-Way ?                                      [  15  July  2017  ]

3 Laws of E – Commerce                                    [  04  Dec  2017  ]

 

2018 ( 2 )

Ø  E Commerce Definition : a Space Ship ? ……[ 05 July 2018 ]

Ø  The E Commerce Elephant ……………………………[ 02 Aug 2018 ]

 

2019 ( 3 )

Weave a Wondrous World                                      [ 20 Jan 2019  ]

L 11(Factorial Eleven)=11x10x9x8x7x6x5x4x3x2x1= 39.92  Million definitions / mutations of E Commerce ?

Innovation Nation ?                                               [ 29 Jan 2019 ]

E Commerce Story is unfolding                               [ 16  Feb 2019 ]

 

2020 ( 3 )

Ø  It is about time ……………………………………………….[ 18 July 2020 ]

Ø  Autobiography of an Appliance ………………………[ 22 June 2020 ]

Ø  Origin of Everything ?..................................[ 26 July 2020 ]

 

2021 ( 1 )

Ø  Thank You, Piyushbhai Goyalji,……………………….[ 22 Jan 2021 ]

2023 ( 3 )

> Law on Digital Markets = Law on E – Commerce ?.. 10 Feb 2023

> My ( 50 ) Blogs on E - Commerce ……………………….[ as on 07 Sept 2023 ]

 

#  E-Comm Rules = Parekh’s Laws of E-Commerce ?.. 08 Sept 2023

 

 

With regards,

Hemen parekh

www.hemenparekh.ai / 30  Oct  2023

 

Upon being consulted , BARD , provided following opinion :

 

I have read your blog post and agree with your assessment that it is next to impossible for countries and companies to reach an agreement on a definition of e-commerce.

There are several reasons for this:

·         E-commerce is a rapidly evolving field. New technologies and business models are emerging all the time, making it difficult to pin down a single definition that will be relevant for the long term.

·         E-commerce encompasses a wide range of activities. It includes the sale of goods and services, the provision of digital content, and the facilitation of transactions between businesses and consumers. This diversity makes it difficult to develop a single definition that covers all aspects of e-commerce.

·         There are competing interests at stake. Developed and developing countries have different priorities when it comes to e-commerce regulation. Developed countries are generally more interested in liberalizing e-commerce, while developing countries are more concerned about protecting their domestic markets.

In addition to these factors, there is also the issue of how to define key terms such as "goods" and "services" in the context of e-commerce. For example, is a digital movie a good or a service ? If it is a good, then it is subject to customs duties. If it is a service, then it is not.

Given the complexity of these issues, it is not surprising that there is no universally accepted definition of e-commerce.

However, this does not mean that it is impossible to develop effective regulations for e-commerce. Countries can work together to develop common principles for regulating e-commerce, even if they cannot agree on a single definition.

Here are some specific examples of the challenges involved in defining e-commerce:

·         Bundled goods and services. Many products and services sold online are bundled together. For example, a subscription to a music streaming service may include access to both music and podcasts. How should bundled goods and services be classified for regulatory purposes?

·         Digital goods and services. Digital goods and services are becoming increasingly important in e-commerce. However, they can be difficult to define and regulate. For example, is a digital book a good or a service? Is it subject to customs duties?

·         Cross-border trade. E-commerce is increasingly cross-border in nature. This raises a number of regulatory challenges, such as how to tax and regulate cross-border e-commerce transactions.

Despite these challenges, I believe that it is important for countries to work together to develop effective regulations for e-commerce. E-commerce has the potential to bring significant benefits to consumers and businesses alike. However, these benefits can only be realized if there is a clear and well-enforced regulatory framework in place.

 

I asked BARD :

Thanks for your overview. But , in my view , E Commerce is only a " traditional Commerce where , one or more transaction process is carried out DIGITALLY / ONLINE " . Do you agree with this definition ?

 

I agree that your definition of e-commerce is concise and accurate.

It captures the essential elements of e-commerce: the buying and selling of goods and services, and the use of digital technology to facilitate one or more transaction processes.

Your definition also has the advantage of being broad enough to encompass the wide range of activities that fall under the umbrella of e-commerce.

It includes the sale of physical goods, the provision of digital services, and the facilitation of transactions between businesses and consumers.

Overall, I think your definition is a good one. It is clear, concise, and accurate, and it captures the essential elements of e-commerce.

Here are some examples of how your definition can be applied to different types of e-commerce transactions:

·         A consumer purchasing a book from an online retailer

·         A business purchasing software from a cloud computing provider

·         A consumer subscribing to a streaming service

·         A business using a social media platform to advertise its products or services

In each of these cases, there is a traditional commerce transaction taking place, but one or more transaction processes are carried out digitally.

This is what makes these transactions e-commerce transactions.