Draft ecommerce rules seek end to flash sales but consumers don't: Survey

As many as 72 per cent people believe the government should not restrict e-commerce websites/apps from offering heavy discounts or sales, as proposed in the amendments to Consumers Protection (ecommerce) Rules, 2020, a survey by community social media platform LocalCircles has found.

The rules, among other things, propose that e-commerce companies not be allowed to organise flash sales that allows sales of goods or services at significantly reduced prices and high discounts.

The Ministry of Consumer Affairs, Food and Public Distribution has sought public opinion on these proposals by July 21.

LocalCircles conducted detailed studies to gauge consumers’ pulse on the key issues in the new amendments to the Consumer Protection (ecommerce) Rules, 2020. Questions and this survey in the series focused on usage of ecommerce platforms in the last 12 months, their views on ban/restrictions on sales events and how information, like the country of origin, can be made more accessible to consumers.

Over 82,000 responses were received from consumers residing in 394 districts of India.

The highest percentage of consumers in the survey at 49 per cent, said “ecommerce sites and apps” have been their preferred mode of shopping in the last 12 months.

Another 22 per cent called or messaged retail stores and got home deliveries, indicating the emergence of a new home delivery trend where instead of people moving to procure products, products moved to them.

Survey findings further revealed that 79 per cent people use ecommerce for “convenience and safety”, 64 per cent for “more selection and choice”, and 61 per cent use it for “competitive pricing and easy returns”. Consumers were allowed to pick multiple reasons for this question.

Another question asked consumers how often they looked for "country of origin" information on e-commerce platforms in the last six months.

In response, 43 per cent consumers said “did it for all purchases”, 13 per cent said “did it for 25-50 per cent purchases while 4 per cent “did it for 10-25 per cent of the purchases. Only 26 per cent responded “never” and 5 per cent did not have an opinion.