How will New FDI Rules for B2C e-commerce affect eBooks?
Will the new FDI rules for B2C marketplaces in India, affect Amazon's eBook business? The new FDI rules include provisions restricting e-commerce firms from directly or indirectly influencing the sale price of goods on online marketplaces and Amazon has very detailed terms and conditions about the price of eBooks on its platform.
Times of India reports that the next time you turn online for a big discount, chances are, you will come away empty-handed. The government's new e-commerce policy that has opened the gates for 100% foreign direct investment (FDI) in B2C online marketplace, restricts e-commerce companies from directly or indirectly influencing the sale price of goods on online marketplaces.
This could mean, no more jaw-dropping discounts on smartphones or televisions -- or at least, online prices will be on a par with what your neighbourhood retailer offers. "This was needed. They will now not only stop giving huge discounts but also perhaps not advertise openly about big sale days. This will call for change of business model," said Kishore Biyani, CEO of Future Group that runs the country's largest brick-and-mortar retail company.
E-commerce companies here have been using discounts to lure consumers to shop online. In the process, apart from burning hundreds of millions of dollars of investor money and racking up huge losses, they have given offline retailers a run for their money.