Today's ( 30 March 2016 ) Hindustan Times carries
following news report :
Department of Industrial Policy and Promotion ( DIPP )
issued following notification yesterday :
* 100 % FDI
under automatic route is permitted in market place model of e-commerce
* FDI was not permitted
in the " inventory based " model of e-commerce, implying companies
that get FDI cannot buy and store goods from various vendors to eventually sell
to consumers
* FDI will be
permitted only if the products from a single vendor or a group of companies do
not exceed the quarter of the online retail " market place's " total
sales
I suppose , this notification is just the beginning of
unshackling of the E Commerce, whose contours I outlined in my E mail (16
Nov 2015
) to Union Cabinet Ministers / DIPP , as follows :
-------------------------------------------------------------------------------------
E -
Commerce is Easy Commerce !
Hindustan Times (16 Nov 2015) quotes Commerce Minister
Nirmala Sitharaman as follows :
" The Government is working on the
definition of E Commerce to clear the air over issues such as taxation and
Foreign Investment
We have got the inputs from States . We are in the
process of putting it all together "
Not an easy task to define what is E Commerce ( and
what is not ), considering all the possible permutations / combinations (
running into LAKHS of them ! ) , of the following elements :
#
NATURE
* A physical
" Product " ( Capital Goods / FMCG / Consumables / Perishables )
* A virtual "
Service " ( Medical advice / Legal advice / Consultancy
/ Software etc )
#
GEOGRAPHIC SPREAD
* Across National
boundaries ( International Trade )
* Across State
boundaries ( within India )
* Across Municipal
boundaries (within a State )
#
SUPPLY- CHAIN / INTERMEDIARIES
* Mfr
> Distributor > Dealer > Retailer
> Buyer
* Mfr
> Buyer
* Any
disintermediation in the above chain
#
ORDER PLACEMENT / ACCEPTANCE
* In a physical
location ( Shop / Store / Office / Factory / Home )
* In a virtual
location (Web site/Mobile App/SMS/ Email / Phone / Video
Conference )
#
DELIVERY
* Physically in a
Shop / Store etc where Buyer collects / picks-up from shelf
* Delivered to
Buyer's location, thru Delivery Boy
* Delivered to
Buyer's location, using a Drone
* Delivered to
Buyer on his home-based 3D Printing Machine ( using internet )
#
PAYMENT
* Cash against
delivery
* Pre-paid /
Post-paid Cheque
* Credit / Debit
Cards across counter
* Credit / Debit
Cards thru online Payment Gateways
* Through Mobile
Wallets
* Electronic Bank
Transfer
* Using Virtual
Currency like Bit-Coins
* Barter of Goods
or Services
#
FOREIGN INVESTMENTS
* FDI in Manufacturing /
Supply Chain / Payment Gateways - Apps- Mobile Wallets
* FDI in Web sites like
Amazon - Flipkart - Alibaba - Snapdeal etc ( What percentage ? )
Can you think of any other " Elements " that
I have forgotten ?
In any case , given the fact that there can be lakhs (
if not millions ) of permutations / combinations of the above-mentioned
elements , one must not attempt to define what is E Commerce ( and what is not
) , by inclusion or exclusion of these elements in definition
Such a complex definition would lead to
thousands of court cases involving Governments and each court interpreting the
definition , differently !
The only definition that would satisfy ALL of these permutations / combinations ,
is :
Any exchange of " Value "
between any number of parties , involving ,
> Goods or Services , on the
part of one party
with,
> Money or its equivalent
consideration , on the part of a second party
with or without using,
> Intermediary services , on the
parts of any other parties
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www.hemenparekh.in / blogs
30 March 2016
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