The Indian government announced on Wednesday a series of new e-commerce rules that will likely affect the largest e-commerce players of the country. The ruling bans that e-commerce marketplaces from selling inventory from companies in which they have an equity interest. It also forbids exclusive distribution deals.
This change is most likely to hit Amazon and Walmart-owned Flipkart. The two marketplaces have been accused of using unfair trade practices such as deep discounts in an attempt to increase market share. In a country where small corner shops dominate the retail market, many owners felt that they could no longer compete.
Amazon reported an exceptional holiday season this year, although it did not announce any exact figure yet. This statement corroborates a report from Mastercard, saying that holiday sales increased 5.1 percent this year. The growth, it said, was led by a 10% increase in online spendings.
This interesting read by the New York Times explains one of the plausible reasons for Amazon’s continued success: the firm is the only one Americans trust for last-minute delivery. The significant investments that Amazon made in its fulfillment center are paying off dividends.
In this last e-commerce briefing of 2018, I suggest that you set aside 5 minutes to read this piece Technode: Top 10 predictions for China cross-border e-commerce in 2019. It contains a lot of keys to better anticipate what is to come.