The recent MHA guidelines on opening e-commerce platforms are confusing. All e-commerce platforms should be restricted only to essential commodities, otherwise they will break the backbone of this country. There is a huge and cry among the Brick and Mortar

There is a rising concern from the resellers from across the country, on the business module adopted by e-commerce companies including Amazon , Flipkart and OLX are offering deep discounts, indulging in predatory pricing, engaging in B2C business, exercising control over inventory and influencing the prices of goods sold on the platform.

There was reports from the industry says, the discounts offered by e-commerce firms sometimes go up to 80 percent of the maximum retail price (MRP) of a product which the lobby group believes is a violation of the foreign direct investment regulations as such activities influence pricing. As a result, consumers at large benefited as e-commerce companies kept on burning investors’ money. The discounting game continued because they wanted to increase the penetration of online commerce in the world’s second most populous country.

The recent letter dated April 15th 2020 from MHA, on conditionally starting economic activity in certain business verticals and geographical locations from April 20th 2020. On bare perusal of Clause 14(ii)&(xi) of the said guideline it can be safely concluded that Retail of IT Hardware and Service rendered by organisations through B&M outlets is not permitted. However, on the contrary commencement of Sale of both essential and non-essential Goods through rival OLS platforms from April 20th 2020 is a matter of great concern for the countrywide Brick and Mortar channel which is carrying huge unsold inventories owing to targets based on forecasted sales for the month end and financial year end.

In wake of likelihood of continuation of Lockdown until the transmission curve of brutal Corona Virus is flattened, more and more sectors are embracing technologies to work from home and need reliably latest IT hardware for same. It is a matter of grave concern for the B&M channel that most of the accumulated demand for fulfilment from April 20th 2020 will get diverted to rival OLS platforms thus further adding to the woebegone of B&M channel thus causing inter alia issues related to payment default and severe cash flow issues.

Further to telephonic conversation in this regard with Alok Gupta on behalf of each and every channel partner of this country, it is suggestively reiterated that, Orders can be aggressively booked on respective brand owner portal while the B&M channel can be used for on-site delivery/fulfilment of same.

Modalities, modus operandi, and modus vivendi can be deliberated and construed with the intent to move the unsold stock of B&M Channel partners to generate adequate liquidity to trigger start the payment cycle. The B&M IT Channel is fearing the worst in these times of uncertainty and despair.

Your kind consideration to afore suggestion or any other initiative which can liquidate the unsold stocks and revive the business will inspire confidence and infuse much required motivation to tide over the current crisis.

Industry associations are in distress and pleading the Home Ministry( MHA) to look into the matter at the earliest to look into the future of the offline IT channel .