E-commerce

-About Indian Market

• E-commerce (electronic commerce) is
the buying and selling of goods and
services, or the transmitting of funds or
data, over an electronic network,
primarily the internet. This can be done
through websites, mobile apps, and
other online platforms.

• These business transactions occur

either as business-to-business (B2B),
business-to-consumer (B2C),consumer-
to-consumer or consumer-to-business.
• Examples of e-commerce businesses include •eBay, an online auction and shopping website
Amazon for online shopping, Uber for ride-hailing •Spotify, a music streaming service
services, and Airbnb for booking short-term •Netflix, a video streaming service
accommodation. •Booking.com, an online travel booking service
• Other examples include online food ordering and
delivery services, online marketplaces for
handmade or vintage items, and online service
platforms for booking appointments for services
like beauty, health, and fitness.
 • With a turnover of $50 billion in 2020, India
became the eighth-largest market for e-
commerce, trailing France and a position
ahead of Canada.
• Grocery and fashion/apparel likely to be
the key drivers of incremental growth.
• After China and the US, India had the third-
largest online shopper base of 150 million
in FY21 and is expected to be 350 million
by FY26.
• Through its ‘Digital India’ campaign, the
Government of India is aiming to create a
trillion-dollar online economy by 2025.
• The Indian online grocery market is
estimated to reach US$ 26.93 billion in 2027
from US$ 3.95 billion in FY21, expanding at a
CAGR of 33%.
Source: IBEF.org
• India’s ecommerce transactions surged by 77% in 2020-21 with
transactions from tier 2 and tier 3 cities experiencing the highest
growth ever.
• Indian e-commerce is projected to increase from 4% of the total
food and grocery, apparel and consumer electronics retail trade in
2020 to 8% by 2025.
• India's consumer digital economy is expected to become a US$ 1
trillion market by 2030, growing from US$ 85-90 billion in 2020,
driven by strong adoption of online services such as e-commerce
and edtech in the country.

Tier 2
•Ahmedabad Tier 3
•Jaipur •Agra
•Lucknow •Udupi
•Nagpur •Jalandhar
•Visakhapatnam •Kota
Additional reading
Here is a list of some popular online consumer services:
1.Amazon - an e-commerce platform that sells a wide range of products,
including books, electronics, clothing, and household items.
2.Netflix - a streaming service that offers a vast library of TV shows,
movies, and original content.
3.Spotify - a music streaming service that allows users to listen to
millions of songs on demand.
4.Airbnb - a platform that allows people to rent out their homes or
apartments to travelers.
5.Uber - a ridesharing service that connects riders with drivers for
transportation.
6.Grubhub - a food delivery service that allows users to order from
restaurants in their area.
7.Dropbox - a cloud storage service that allows users to store, share, and
access their files from anywhere.
8.Instacart - a grocery delivery service that allows users to shop for
groceries from local stores.
9.Zoom - a video conferencing service that allows users to host virtual
meetings and webinars.
10.PayPal - an online payment service that allows users to send and
receive money, make online purchases, and more.
Here are some examples of digital content players:
1.YouTube - a video-sharing platform that allows users to upload,
view, and share videos.
2.Vimeo - a video-sharing platform that focuses on high-quality,
original content.
3.SoundCloud - a platform that allows users to upload, share, and
listen to music and audio tracks.
4.Twitch - a live-streaming platform that primarily focuses on
video games, but also includes streams for other creative content.
5.TikTok - a short-video sharing platform that has become popular
for its lip-sync, dance, and comedy videos.
6.Hulu - a streaming service that offers a vast library of TV shows,
movies, and original content.
7.Disney+ - a streaming service that offers a wide range of Disney
content, including movies, TV shows, and original content.
8.Apple TV+ - a streaming service that offers a mix of original
and exclusive content, including movies and TV shows.
9.Amazon Prime Video - a streaming service that offers a vast
library of TV shows, movies, and original content.
10.Netflix - a streaming service that offers a vast library of TV
shows, movies, and original content.
Online Finaical players: PayPal, Square, Stripe, TransferWise, Chime,
Coinbase, Personal Capital, SoFi, and Wealthfront are all available in India
to some extent, although the specific products and services they offer may
be limited.
Pepperfry
• Amazon operates a combination of both inventory and marketplace models.
The company sells its own products, such as the Amazon Basics line, through the
inventory model. In this model, Amazon buys products from suppliers and
manufacturers, stores them in its warehouses, and then sells them directly to
consumers through its online platform.
• In addition to selling its own products, Amazon also operates a marketplace
model, in which it allows third-party sellers to sell their products through the
platform. In this model, Amazon does not hold any inventory, but instead acts as
a facilitator between the buyers and sellers. The sellers list their products for sale
on the platform, and Amazon takes care of payment processing, customer
service, and order fulfillment.
• So, while Amazon is primarily an inventory model company, it also has a significant
marketplace component, as it allows third-party sellers to sell their products through
its platform.
 Consumer Protection act(E-commerce)
G.S.R. 462(E).—In exercise of the powers conferred by sub-clause (zg) of sub-section (1) of section
101of the Consumer Protection Act, 2019 (35 of 2019), the Central Government hereby makes the
following rules.
Scope and Applicability.
(1) Save as otherwise expressly provided by the Central Government by notification, these rules shall
apply to:

(a) all goods and services bought or sold over digital or electronic network including digital products;
(b) all models of e-commerce, including marketplace and inventory models of e-commerce;
(c) all e-commerce retail, including *multi-channel single brand retailers and single brand retailers in
single or multiple formats; and
(d) all forms of unfair trade practices across all models of e-commerce

*Multi-channel refers to a producer or retailer’s effort to combine and blend different distribution channels to
accommodate where and how consumers make purchases.
Single channel refers to a producer or retailer’s effort to reach customers through only one distribution option,
regardless of whether it’s online, catalogue, mail-order, face-to-face selling or traditional retail.
Definitions
In these rules unless the context otherwise requires,
• a) "Act" means the Consumer Protection Act, 2019 (35 of 2019);
• (b) “e-commerce entity” - means any person who owns, operates or manages digital or electronic facility
or platform for electronic commerce, but does not include a seller offering his goods or services for sale
on a marketplace
• (c)“grievance” includes any complaints to an e-commerce entity regarding violations of the provisions of
the Act and the rules made thereon
• (d) “GSTIN” means the Goods and Services Tax Identification Number as under the Central Goods and
Services Tax Act, 2017 (12 of 2017);
• (e) “information” shall have the same meaning as to it clause (v) of sub-section (1) of section 2 of the
Information Technology Act, 2000 (21 of 2000);
The term ‘information’ for the purposes of this Act refers to any data, message, text, images, sound, voice,
codes, the computer programmed software or databases.
• (f) “inventory e-commerce entity” means an e-commerce entity which owns the inventory of goods or
services and sells such goods or services directly to the consumers and shall include single brand retailers
and multi-channel single brand retailers;
Definitions

• (g)“marketplace e-commerce entity” means an e-commerce entity which provides an

information technology platform on a digital or electronic network to facilitate transactions
between buyers and sellers;
• (h) ― “PAN” means Permanent Account Number as under section 139A of the Income Tax Act,
1961 (43 of 1961);
• (i) “platform” means an online interface in the form of any software including a website or a
part thereof and applications including mobile applications;
• j) “ranking” means the relative prominence or relevance given to the goods or services offered
through a marketplace e-commerce entity as presented, organized or communicated by such
entity, irrespective of the technological means used for such presentation, organization or
communication;
• (k) ―seller” means the product seller as defined in clause (37) of section 2 of the Act and shall
include any service provider;
• (l) “user” means any person who accesses or avails any computer resource of an e-commerce
entity.
DUTIES OF E-COMMERCE ENTITIES
DUTIES OF E-COMMERCE ENTITIES
DUTIES OF E-COMMERCE ENTITIES
 e.g.: Duties of
example ecommerce entities
point no. 2
example e.g.: Duties of
ecommerce entities
point no. 2 and 6
 e.g.: Duties of
ecommerce entities
point no.11

• *T refers to the day of the

transaction
Liabilities of marketplace e-commerce entities.
Liabilities of inventory e-commerce entities

• An inventory e-commerce entity means an e-commerce entity which owns the inventory of goods
or services and sells such goods or services directly to the consumers, including single brand
retailers and multi-channel single brand retailers.

• Inventory e-commerce entities are subject to similar duties as that of sellers on marketplaces.
Additionally, an inventory e-commerce entity which explicitly or implicitly vouches for the
authenticity of the goods or services sold by it, or guarantees that such goods or services are
authentic, shall bear appropriate liability in any action related to the authenticity of such good
or service.
Duties and liabilities of sellers-Summary
• Provide the following to the e-commerce entity (to be
• Not adopt any unfair trade practices and Not displayed on its platform and website):
falsely represent themselves as consumers and
I. All contractual information to be disclosed by law
post reviews or misrepresent the quality or
features of any goods and services II. Total price of the goods and services, including a break-
up of all compulsory and voluntary charges
• Not refuse to take back goods, or withdraw or
discontinue services purchased or agreed to be III. All mandatory notices and information provided by
purchased, or refuse to refund consideration, if applicable laws
paid, in case the goods and services are defective
IV. Expiry date of the goods and details of guarantees and
in any manner or if the goods are delivered late
warranties, wherever applicable
(except on account of force majeure events)
V. All relevant details of the goods including country of
• Execute a prior written contract with the e-
origin
commerce entity before transacting on its platform
VI. Name and contact details of the grievance officer
• Appoint a grievance officer and establish a
grievance redressal mechanism VII. Details in relation to the import of goods, guarantee
related to the authenticity of the import
• Ensure that advertisements are consistent with
actual characteristics of goods and services being VIII. Accurate details on terms of exchange, returns,
sold shipment, refund and delivery of goods and services