100% FDI in E-Commerce

Q.  Which of the following is/are true regarding e-commerce?

1) Marketplace model of e-commerce has been defined as information technology platform by an e-commerce entity ta act as a facilitator between two or more sellers.
2) As per the FDI rules, E-commerce marketplace may provide support services to sellers in warehousing, and logistics, order fulfillment, etc.
- Published on 31 Mar 16

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Only 2
 
  • The marketplace model has been defined as providing an “information technology platform by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.”
  • DIPP said that the e-commerce marketplace may provide support services to sellers in warehousing, and logistics, order fulfilment, call centre, payment collection and other services.
  • However, such entities will not exercise ownership over the inventory. Such an ownership over the inventory will render the business into inventory-based model.

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