Traders’ body raises alarm over e-commerce platforms flouting inventory-model rules

The Confederation of All India Traders (CAIT) has written to the commerce minister alleging several e-commerce and quick-commerce firms are operating via inventory-models while marketing themselves as marketplaces, thereby bypassing rules applicable to direct sellers. This practice, CAIT says, undermines local traders and small retailers who adhere to marketplace norms and compliance costs. The complaint may lead to regulatory scrutiny, including adjustments to FDI policy and consumer-protection enforcement. Market-shares, logistics-networks and competitive dynamics across retail-commerce segments could shift as scrutiny increases.