Impact of New E-Commerce Norms on Online Marketing Efforts of E-Commerce Websites

Categories: E-commerce /

Akangsha Gautam

  • 26 Oct,2022

Impact of New E-Commerce Norms on Online Marketing Efforts of E-Commerce Websites

One of the most hotly debated topics has been the future of E-Commerce platforms in India. Codepilot Technologies in Guwahati provides the best e-commerce website design. The recent amendments in the policy regarding E-Commerce in India have created two parallel spheres of public opinion. One sphere advocates in favor of the regulations, saying that it’ll help safeguard the small local shopkeepers who can’t compete with the big players but a contrarian point of view by the other sphere says that such a move is going to severely damage and discourage the E-Commerce space which is still on the rise and contributes heavily to trade. But what exactly happened? How does this impact the density of marketing efforts that these firms put in to compete against each other? 

Impact on E-commerce websites

According to the new regulations E-Commerce firms will no longer be able to shower their customers with offers such as hefty discounts, introductory cashback, one-day delivery, or any additional value-added service on their platforms.

In other words, you’ll stop getting cashback notifications from platforms that used to induce customers to shop on their portal instead of lucrative cashback offers.

This is just one small example of what these regulations imply for the E-Commerce space or e-commerce portal.

Another major resolution passed by the government prevents any E-Commerce vendor from selling more than one-fourth of its inventory on a particular platform.

In other words, you won’t see any more Exclusive Launches of smartphones or introductory offers on apparel brands.

How this will impact the marketing efforts that these firms put in can be gauged from the simple fact the introduction of these reforms is sure to impact a major chunk of their revenue.

Since a cap has been introduced on how much a vendor can sell, the platform loses the advantage of driving in all the revenue from the exclusive sales on its platform.

Secondly, since the products available on these platforms will get more expensive, it will drive customers away who are used to low prices and cashback on their purchases.

So this move by the government is proving to be a double-edged sword for these E-Commerce platforms and it seems they’ll have to bleed plenty in the coming days. As for you, the customers, be ready to see higher prices and lower offers in the coming days.