It is becoming evident that regulation is required to maintain fairness and safety in the marketplace as e-commerce expands at an unprecedented rate. Inventory-based sales may no longer be allowed under new laws. This could significantly impact the e-commerce industry as we know it today. Many e-commerce platforms currently use an inventory-based approach to function. This implies that they acquire goods from vendors and then market them to buyers online. However, for a number of reasons, this concept has drawn criticism. One example is that it could result in unethical business practices and pricing. Concerns about the calibre and reliability of the things being sold may also arise. To address these concerns, lawmakers and regulators are considering new regulations that would prohibit inventory-based sales. The idea is to shift the e-commerce industry towards a marketplace-based model, where the platform simply connects buyers and sellers, but does not take possession of the products being sold.

The benefits of this model are obvious. According to Mr Ankit Gupta, the founder and Director of Exporters India “By eliminating inventory-based sales, e-commerce platforms would lose their capacity to control pricing and act in an anti-competitive manner. They would also be less likely to offer items that are dangerous or fake since they wouldn't be responsible for assuring the calibre and legitimacy of the goods being sold. However, there may be certain drawbacks to this new regulatory approach. To begin with, it could be more difficult for small businesses to enter the e-commerce market. If they can't sell their products using an inventory-based strategy, they might have problems finding a platform that would put them in contact with customers.”

Market-based approaches could also have a lower level of dependability when it comes to customer service and delivery delays. With inventory-based sales, the platform is in charge of the handling and shipment of the products, giving customers a more dependable and consistent experience. The platform might not have the same level of control over these components of the transaction in a marketplace-based model, which might result in a less positive client experience. The government is expected to implement an e-commerce policy that will put an end to inventory-based sales. The policy also aims to eliminate the practice of providing special incentives for using a particular payment service. After several months of planning, inter-ministerial consultations on the issue have resumed in recent weeks. Unlike before, the consumer affairs department is taking a cautious approach to ensure that there are no disruptions. In fact, the department has already taken steps to address some of the issues facing consumers, such as those related to product reviews and handling grievances for the sale of defective products.

It is obvious that the shift towards a marketplace-based e-commerce model is gaining momentum despite these possible negatives. In the upcoming years, it is likely that we will observe a trend away from inventory-based sales as legislators and regulators continue to evaluate new restrictions. E-commerce platforms must adjust to these developments in order to stay competitive in this quickly expanding sector. The impending e-commerce laws, which may forbid inventory-based sales, are a response to worries about unfair competition and product safety. To sum up, even if the move to a marketplace-based model may have some cons, it is ultimately a good thing for the e-commerce sector. We may anticipate a more equitable and open marketplace when new regulations come into force for both buyers and sellers.

About Author

Mr. Ankit Gupta is the Founder & Director of Exporters India, a Delhi-based company that offers a trusted platform to sellers and buyers to interact and provide certain paid services to facilitate better placement, exposure, or response. His chief responsibilities include providing innovative ideas to exploit business opportunities, taking final decisions with due consideration to trends, future, growth, and risk, and developing comprehensive strategies for the company.

A B.Com graduate and ICWA certified professional, Ankit believes in leading by example. He is credited with creating a diverse ecosystem that binds the Exporters India team under his single vision and motivation, viz. utilizing the power of the Internet to establish a connection in the B2B segment.

When Internet first made its debut in India back in 1996, Ankit was one of the first few industry experts to recognize its potential in the corporate sphere. Its arrival fueled his dream of excelling in the B2B sphere, and drove him into the world of Internet and its opportunities. Equipped with in-depth knowledge about e- commerce that he acquired via short-term courses and self-study, Ankit finally incepted Exporters India in 1997.

The company, which began as a small start-up with a handful of like-minded techies, quickly escalated to become a bigger platform following a brainwave that led Ankit to establish multiple platforms for interaction across industry verticals. In 2003, he took the first steady step towards expansion as he shifted from his residence-based office to a commercial office complex. In 2004, a separate office was set up for its B2B portals, i.e. and, which helped him focus on the individual marketing strategies of these sites.

In 2006, he shifted base and merged all web portals and working staff under a single larger roof at Exporters India’s present corporate address. Within a span of 7 years, Ankit managed to augment the team strength of his company, even as the quality-enriched services churned out by the company spiked up the list of esteemed clientele by 10 times.

Ankit’s strong people management skills and great business acumen has helped him sketch this success story, enabling him to build a company that stands tall in reputation, and is a trusted brand name all over the world. What began as a single man’s dream is now a mission of more than 1100 skilled team members, who have put in their talent and hard work to deliver the best of online web solutions for their customers.

A determined and supportive leader, Ankit believes that the tireless efforts of his experienced and skilled team is the core of Exporters India. Each and every professional in this company is adept in his/her respective fields, and keep themselves abreast with the latest trends in the market. Be it designing & development, content, or the management team, each member is dedicated towards the complete satisfaction of buyers & suppliers, and carve out solutions for the same. The experience inculcated over a period of more than a decade gives them the insight into varying demands of clients, and lets them design solutions based on individual preferences.

Over the next five years, with his eyes set on maximum ROI for SMEs, Ankit’s plans to substantially increase the search visibility of Exporters India to ensure that genuine leads are received and provided to the clients associated with the company. He is planning to target a customer base of 1 lakh satisfied and happy clients in the near future.

Ankit is passionate about travelling, and tries to visit at least two new countries every year. He is also a nature lover & humanitarian, and takes keen interest in various social services. He is also associated with the Shobha Foundation, a trust that is dedicated to the aid and rehabilitation of underprivileged individuals, and is one of its major benefactors.

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