The Future of E-Commerce’s Most Important Events in Light of the New Regulatory Framework – Brand Wagon News

By Siva Balakrishnan

The new regulatory framework has brought about significant changes in the e-commerce landscape in India. These regulations are aimed at strengthening consumer protection, ensuring data privacy, encouraging openness and increasing overall operational efficiency. The e-commerce sector is expected to grow to USD 350 billion by 2030. Hence, major e-commerce events such as digital sales like Black Friday, End of Reason, Independence Day sales and Big Billion Days are expected to have a significant impact. Let us take a look at how these changes will impact the same events in the future.

Overcoming rising costs

Vedanta Aluminium, Appointment, Vedanta Ltd, Resource Efficiency, Mining Practices, M&A, Coal Mines, Growth Plans

Vedanta Aluminium Announces Appointment of David Stone as Chief Executive Officer, Coal Mines

The Future of Work: Evolving Workplace Strategies

Dr. Subba Rao Pavuluri: Leading India’s Space Revolution Through Private Sector Innovation

In 2017, the GOVERNMENT announced that no one seller can make more than 25% of total sales in one market.

Predatory pricing: Are e-commerce companies playing fair?

Stricter compliance requirements and rising operating costs are changing the playing field for e-commerce platforms and posing significant challenges, especially for smaller vendors. Rising technology and logistics expenses, along with regulatory compliance, are putting pressure on the financial resources of small businesses and often leading to reduced profit margins. These vendors must invest more in systems and procedures to meet compliance standards, which diverts funds away from growth and innovation. As smaller businesses find it harder to keep up with larger, more established rivals that have greater financial flexibility, the marketplace can become more limited and less diverse.

1. Enhanced consumer trust and protection

With strong anti-fraudulent provisions and protections against scammers and misleading advertising, the Consumer Protection Act 2019 aims to increase consumer confidence. As customers feel more confident that their civil liberties are being respected, they are likely to participate more in major digital sales events such as Black Friday, End of Reason and Big Billion Days, which will increase sales and encourage stronger customer loyalty.

2. Data security and privacy issues

E-commerce platforms must meet rigorous data privacy standards set forth in the Digital Personal Data Protection (DPDP) Act of 2023, which mandates responsible management of consumer information to prevent data breaches. Enhanced data security measures increase consumer trust, which leads to increased participation in key digital shopping events. This increased trust leads to higher engagement and higher revenue during these key events.

3. Transparency in corporate conduct

Under the Consumer Protection (E-Commerce) Rules, 2020, e-commerce platforms must provide clear and accurate information about products, services and suppliers. These regulations eliminate uncertainty and false claims, helping customers make informed choices. As a result, increased operational transparency will improve the shopping experience, especially during major sales events, ensuring more informed decisions.

4. Quick handling of complaints

The new legal framework emphasizes the importance of prompt and effective complaint handling, ensuring that customer complaints are resolved quickly and increasing satisfaction. Effective complaint handling increases customer satisfaction and encourages participation in future e-commerce events, supporting the continued success of these platforms.

5. Safety measures

The Information Technology Act, 2000 emphasizes the importance of combating cyber threats to protect customer and company data, especially during important events such as digital sales across platforms. While implementing advanced cybersecurity measures can be an operational challenge, the long-term benefits—such as reducing cyber threats and increasing consumer confidence—are invaluable for creating a safe online shopping environment.

6. Possible limitations in operation

New compliance regulations could increase the operating costs of e-commerce platforms, which poses a challenge for smaller sellers. These providers may struggle with additional financial and procedural burdens, potentially limiting their ability to participate in large sales events and effectively compete with larger sellers.

7. Promotional and marketing techniques

The Consumer Protection Act and e-commerce regulations prohibit deceptive advertising and unfair promotional tactics. E-commerce platforms must adopt ethical marketing practices to remain compliant. By focusing on honesty and transparency, platforms can improve their brand reputation and build consumer trust, leading to long-term success and increased trust during important events such as end of season, Black Friday, end of reason, and Big Billion Days, etc.

8. Impact on the industry over time

The new regulatory framework aims to create a fairer market environment that benefits both ethical businesses and consumers. By strengthening consumer rights, data protection and transparency, these laws encourage the development of morally driven businesses. This fair landscape will lead to a more competitive e-commerce sector, ultimately providing customers with improved products and services.

9. Influence on purchasing behavior

Better data protection and transparency are likely to lead to more informed purchasing decisions, influencing sales trends at major digital retail events. As consumer rights grow, shoppers may favor platforms that prioritize compliance and customer satisfaction, favoring e-commerce sites they perceive as trustworthy and safe.

10. Innovation and adaptation

E-commerce platforms can adopt innovative technologies and methods to adapt to new regulations, streamlining the management of major sales events. Those who successfully navigate these regulatory changes will gain a competitive advantage, attracting more customers and increasing engagement during sales by using technology to ensure compliance.

Future prospects in light of new e-commerce regulations

The new regulations will significantly impact mainstream e-commerce events and sales, increasing consumer protection and data security while promoting transparency. Increased compliance costs and operational challenges may impact smaller merchants, but adapting to these changes can promote greater consumer confidence and long-term growth in the e-commerce sector.

In conclusion, major e-commerce and digital retail events like Black Friday, End of Season and Pink Friday are expected to change due to the new regulatory environment. Greater consumer protection, more data privacy regulations and a focus on ethics and openness will make shopping safer and more reliable. The long-term benefits of consumer trust as well as continued growth far outweigh any operational difficulties and higher compliance costs. E-commerce platforms have a golden opportunity to lead the future of e-commerce in India by innovating and adapting to these new requirements.

The author is Founder and CEO, Vserve

(The views expressed are those of the author and do not necessarily reflect the views of financialexpress.com)

Follow us on Twitter, Instagram, LinkedIn, Facebook