AMAZON OPTIMISTIC FOR A STABLE E-COMMERCE POLICY
With the Indian government set to release a“stable predictable” e-commerce policy that would allow the retail behemoth keep investing and creating jobs in the country, Amazon’s optimism on its future prospective is uncertain.
The previously revised e-commerce policy had barred e-commerce players from selling products through entities in which they own a stake. Vendors were also not allowed to have more than 25 per cent of their revenues coming from a single platform.
The new Indian norms on foreign direct investment (FDI), which came into effect on February 1, prohibited e-tailors from selling products of companies in which they have stakes, despite both Amazon and Walmart seeking a six-month delay in their implementation.
THE DRAFT POLICY SUMMARY
The draft policy proposes to set up a legal and technological framework for restrictions on cross-border data flow and also laid out conditions for businesses regarding collection or processing of sensitive data locally and storing it abroad — which is a cause for concern among major players in the market.
AnkurPahwa, partner and national leader, e-commerce and consumer internet at EY India, said there has been a long-pending ask from the industry to have a clear and predictable policy governing the e-commerce sector. “While the government is interacting with key players in the segment to take stakeholders view.”
“Our engagement with the Indian government makes us optimistic about partnering and collaborating to seek a stable predicable policy that allow us to continue investing in our technology and infrastructure,” Brian Olsavsky, Senior Vice President and Chief Financial Officer (CFO) at Amazon, said late Thursday.
In the second quarter ended June 30, 2019, Amazon’s net sales increased 20 per cent to $63.4 billion when compared with the corresponding quarter last year. Its net income increased to $2.6 billion Q2 when compared with $2.5 billion it reported in the year-ago period.