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.

How ShareChat is helping local brands with language-focused advertising

As regional language media consumption soars during the lockdown, social media app ShareChat goes full throttle with brand integrations.

Local language social media platform ShareChat is engaging with hyperlocal brands, as well as helping established brands reach a wider audience through local language focused advertising campaigns, as its monetisation strategy takes hold. And at a time when brands are struggling to keep customers engaged in a meaningful manner, they find that focusing on local concerns and speaking in local tongues could help bridge the gaps.

“We have been witnessing a healthy growth since we opened our platform for brand integrations,” said Sunil Kamath, chief business officer, ShareChat. “Our regional strength in Tier 2, 3 and 4 cities, coupled with our unique UGC (user generated content) proposition for brands, is opening new marketing avenues for marketers who want to connect with regional first audiences.”

Much like what video-sharing app TikTok has done, ShareChat and several others are mining the large, mobile-first market in small towns. The 2020 State of the Mobile report by App Annie, a global analytics and market intelligence firm has found that India is right on top, when it comes to app downloads. Between 2016 and 2019, there was a 190 per cent increase in downloads by Indians, which is the highest in the world. Compared to this, globally, downloads went up 45 per cent and China at second place, grew at half the pace at 80 per cent.

Break it down further and for the majority of downloaders, the internet is an entertainment zone with the time spent on entertainment apps in India growing 80 per cent between 2017 and 2019. Also mobile-first emerging markets such as Indonesia, Brazil and India continue to spend the most time in mobile each day. And France, India and Canada saw strong growth with the average user spending 25 per cent more time in mobile each day in 2019 than in 2017.

Snapdeal to face prosecution for illegally selling drugs: Karnataka govt

Meanwhile, Snapdeal, in a statement, said the company would extend required cooperation to law enforcement.

The Karnataka government has issued an order permitting authorities concerned to initiate prosecution proceedings in competent jurisdiction court against e-tailer Snapdeal and a Ludhina-based company for unlawfully selling drugs.

"We had issued an order, on December 21 last, permitting our assistant drug controller in Belagavi to initiate prosecution proceedings against Snapdeal, its CEO Kuar Bahl, COO Rohit Kumar Bansal for their involvement in display, sale and distribution of Suhagra 100, a schedule H drug, on their platform.

The drug cannot be sold over the counter in violation of drugs and cosmetics norms," Karnataka Drugs Controller Amaresh Tumbagi told PTI here Wednesday.

Prosecution proceedings also have been initiated against a proprietor and a staffer of Herbal Health Care company based in Ludhiana for same violations, he said.

Suhagra-100, a sex stimulant drug which falls under Schedule H category of drugs, cannot be purchased over the counter without doctor's prescription, he noted.

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Meanwhile, Snapdeal, in a statement, said the company would extend required cooperation to law enforcement.

"Snapdeal is an intermediary that connects independent, third-party sellers with buyers. Sellers are prohibited from selling any Schedule H drugs on Snapdeal

.

Any reported violations are acted upon strictly, including barring future access to the marketplace for any such sellers," company spokesperson said.

"We also extend all required cooperation to law enforcement in this regard.

We haven't received any communication in this instance and hence cannot offer any specific comment," he added.

Business Standard