The Study of Foreign Direct Investment in E-Commerce

Abstract

The Electronic Companies sell products online to customers in quick, convenient and secured mode. Such companies also give offers like After Sale Service, Cash Back Policy, Discounting rates, EMI Facility and payment through Debit & Credit Card. Further these follow differential pricing strategies to attract maximum number of customers.

The E-Commerce Players like Amazon, Flipkart and Paytm Mall have been expanding businesses in online mode day by day. It has negatively resulting that the differential pricing strategies of Electronic Companies affecting local market. This is the reasoning that Ministry of Commerce has taken the decision for Foreign Direct Investment norms for online retail services. Some of the norms are like online retail service providers don’t have the right for equal participation and secondly, these companies can be selling 25% of their products only.