Written By Deepti Govind
E-commerce firms have been reducing amount of discounts over time, say analysts. Photo: iStock
Ecommerce companies in India have been criticized for predatory pricing, but the revised e-commerce policy plans to make deep discounts a thing of the past. However, some analysts believe online marketplace is likely to find innovative ways to continue offering discounts once the dust around the new rules settles.
On 26 December, the commerce and industry ministry had issued new guidelines, reviewing its policy on foreign direct investment (FDI) in e-commerce. As part of the move, the ministry plugged loopholes to stop online retailers from selling products of companies, wherein they own stakes. Besides, the new guidelines also restrict them from entering into exclusive merchandise deals. The new guidelines will come into effect from 1 February.