Won't allow ecommerce firms to stockpile inventory: Traders

New Delhi: Small traders on Thursday opposed any move by the government to allow e-commerce firms to hold inventory and allow them to make sales directly to consumers.

According to reports, the government is looking to allow FDI-funded etailers to switch over from the marketplace to inventory model.

As per reports, a panel headed by Anup Wadhawan, officer on special duty, ministry of commerce and industry, had met officials from leading e-commerce companies on Wednesday, to know their thoughts for a national policy on e-commerce.

The panel told the delegates that a limited inventory rule may be introduced, which would also help the government’s Make in India policy, according to a report by a business news channel.

Traders body CAIT said that any such proposal will distort retail trade in the country completely and will be nothing less than allowing FDI in retail trade. This, it said will run contrary to the electoral promise of BJP.

“Already the e-commerce business in India is greatly vitiated by malpractices adopted by these players. E-commerce companies are obliged to work only as a technology platform where vendors can sale their products online,” said CAIT.                                  

It said that if etailers are allowed to hold inventory then who will purchase goods from vendors. “It is like surrendering the market to FDI backed e-commerce companies which will be against the interest to offline trade, online vendors and economy,” said CAIT.

It said that government should desist such move or else prepared to face strong opposition.