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Mobile ecommerce players welcome new guidelines

Update On :06 April 2016

Mobile ecommerce players welcome new guidelines

Mobile ecommerce players like Orderr, m1-Order, Goodbox and SnapBizz say that the new ecommerce guidelines have created a level playing field young mobile ecommerce players and boosted their growth prospects. Upcoming mobile ecommerce players connect brick-and-mortar merchants directly to customers and they consider themselves as enabler for the same.

It has also opened the gateway for more merchant acquisitions, faster scaling and funding. While last week's government announcement has left some large ecommerce players flummoxed, upcoming mobile ecommerce players are in a celebratory mood.

Abey Zachariah, CEO, Goodbox said that he was very thrilled after the government came out with the clarification adding that while ecommerce giants would find replicating its model difficult, younger players will grow faster now. Nipun Arora, founder, Orderr says that the new guidelines seem to be in our favor and scaling up would be faster. According to Arora, the enabler business model does the same thing what the large ecommerce players does, but with less staff, less capital, no cash-burns and no discounts, which will allow enablers to scale faster.

The new rules have not only barred ecommerce players from giving discounts directly but they may also not be able to offer cash back offers to draw customers. Moreover, the guidelines restrict ecommerce players to get only 25% of sales from one vendor. Tejinder Oberoi, founder director, m1-Order, an Ahmedabad-based startup says that discounts going away are a major relief for small merchants as this gives them a level-playing field. Oberoi expects more merchants to join his platform as fear of discounts and cashback offers by biggies will fade away soon.

SnapBizz, which focuses on grocery retailers, believes that now larger ecommerce players will have to embrace hyper local (merchant) players in order to scale up. They will need the merchant to be digitalized and for that, they will need to join hands with enablers. Prem Kumar, CEO, Snapbizz said that they were already running pilot projects with large ecommerce players, but with this new development we now expect to see accelerated moves from them. These startups are also hopeful of using the FDI route to quickly raise funds.

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