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ARTICLE · 19 FEBRUARY 2019

FDI In Inventory Based Model

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E-commerce can be defined as a platform for buying and selling of goods and services including digital products over digital and electronic network.

IndiaGovernment, Public Sector
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INTRODUCTION

What is E-commerce?

E-commerce can be defined as a platform for buying and selling of goods and services including digital products over digital and electronic network. In India, two models of e-commerce are followed:

  1. Market Model: It is merely an online platform connecting buyers and sellers and has no inventory of its own.
  2. Inventory Model: The marketplace owners owns the products and also manages the complete end-to-end sales process. The inventory of the goods is owned and sold by the e-commerce entity directly to the customers.

What's In News?

After the recent Walmart - Flipkart deal, the Ministry of Commerce and Industry had set-up a task force which has submitted its recommendations in the form of a Draft National Policy Framework 2018 ("the policy") with an intention to bring a revolution in the Indian e-commerce industry.

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