Monday, May 4, 2020

E-tailers prepare to deliver non-essentials; seek clarity on guidelines

Industry players as well as several consumer organisations have been requesting the government for expansion of the list of essential products.


E-commerce companies are gearing up to start shipping non-essential items to customers in orange and green zones from Monday. However, sales could be impacted as metros and other cities like Delhi, Bengaluru, Ahmedabad and Pune have been classified under red zones.

According to industry executives, e-commerce companies like Amazon India and Walmart-backed Flipkart have been engaging closely with sellers to help them prepare for starting shipment of non-essential products as the third phase of lockdown comes into effect from May 4.

On Friday, the home ministry had announced a two-week extension of lockdown but said there would be certain relaxations for orange and green zones.

Under the latest rules, e-commerce activities in red zones, which cover large cities like Delhi, Mumbai, Bengaluru, Pune and Hyderabad are permitted only for essential goods during the third phase of lockdown that ends on May 17.

A senior industry executive, who did not wish to be named, said states including Karnataka, Rajasthan, Maharashtra and Uttar Pradesh have also notified their guidelines for online commerce platforms that are similar to those issued by the Centre.

The executive said e-commerce companies that follow the marketplace model (like Amazon India, Flipkart and Snapdeal) could face some challenge as many of their sellers are either located or have their warehouses in red zones.

The home ministry guidelines remain unclear on operations of these marketplace sellers of non-essential products, who are in red zones. So, they are dependent on how local authorities issue their guidelines, he said.

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