One
Day , Everything will Sell Online !
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
-------------------------------------------------------------------------
hemenparekh.in / blogs
30
March 2016
hemen
parekh
Marol
, Mumbai , India
(
M ) +91 - 98,67,55,08,08
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