Non-essentials sale on apps to be limited; 'govt needs to clarify rules'

With many states yet to issue their guidelines for e-commerce companies and a large number of sellers being located in red zones, it is likely that only a small percentage of merchants on online platforms like Amazon and Flipkart will be able to start operations from May 4 and sell non-essential items, according to industry executives. On Friday, the home ministry announced a two-week extension of lockdown but said there would be certain relaxations for orange and green zones.

Under the latest rules, e-commerce activities in red zones, which cover large cities like Delhi, Mumbai, Bengaluru, Pune and Hyderabad, are permitted only for essential goods during the third phase of lockdown. A senior industry executive, who did not wish to be named, said that while there are Centres guidelines for e-commerce companies for the third phase of the lockdown, only few states including Karnataka, Rajasthan, Maharashtra and Uttar Pradesh have notified their guidelines so far.

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This lack of clarity from other states could pose difficulty for e-commerce companies to resume full operations, the person said. Another challenge for e-commerce companies that follow the marketplace model (like Amazon India, Flipkart and Snapdeal) is that many of their sellers are either located or have their warehouses in red zones.

The home ministry guidelines, issued a few days ago, remain unclear on operations of these marketplace sellers of non-essential products, who are in red zones. So, they are dependent on how local authorities issue their guidelines, the person said.

E-commerce platforms and many several consumer organisations have also been requesting the government for expansion of the list of essential products to include items like laptops, mobile phones and chargers as well as summer clothing to ensure people that do not have to step out of their homes amid the COVID-19 pandemic. The person said that the addition of these categories will help customers, especially in red zones, to continue work and study from home and practice social distancing.