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Consider the following statements regarding E-commerce sector in India
1. Marketplace model is where goods sold on the portal is owned or controlled by the ecommerce company.
2. Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.
3. 100% FDI is allowed in e-commerce companies in marketplace model.
Which of the above statements is/are incorrect?
- a)1, 2
- b)3 only
- c)2, 3
- d)1, 2, 3
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Consider the following statements regarding E-commerce sector in India...
E-commerce companies can operate under two different models in India.
- The first is the marketplace model where the e-commerce firm simply acts as a platform that connects buyers and sellers. In order to increase the participation of foreign players in the e-commerce field, the Government has increased the limit of foreign direct investment (FDI) in the e-commerce marketplace model for up to 100%.
- The second model is inventory-based where the inventory of goods sold on the portal is owned or controlled by the e-commerce company. FDI is not allowed under this model.
Most Upvoted Answer
Consider the following statements regarding E-commerce sector in India...
E-commerce companies can operate under two different models in India.
- The first is the marketplace model where the e-commerce firm simply acts as a platform that connects buyers and sellers. In order to increase the participation of foreign players in the e-commerce field, the Government has increased the limit of foreign direct investment (FDI) in the e-commerce marketplace model for up to 100%.
- The second model is inventory-based where the inventory of goods sold on the portal is owned or controlled by the e-commerce company. FDI is not allowed under this model.
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Consider the following statements regarding E-commerce sector in India...
Statement 1: Marketplace model is where goods sold on the portal is owned or controlled by the e-commerce company.
Statement 2: Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.
Statement 3: 100% FDI is allowed in e-commerce companies in the marketplace model.
Explanation:
The e-commerce sector in India has seen significant growth in recent years due to the increasing adoption of technology and internet penetration. There are primarily two models of e-commerce operations in India - the marketplace model and the inventory-based model. Let's analyze each statement in detail:
Statement 1: Marketplace model is where goods sold on the portal are owned or controlled by the e-commerce company.
This statement is incorrect. In the marketplace model, the e-commerce company acts as an intermediary platform that connects buyers and sellers. The goods sold on the portal are not owned or controlled by the e-commerce company. The e-commerce company only facilitates the transaction between the buyer and the seller and may charge a commission or fee for the services provided.
Statement 2: Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.
This statement is correct. In the inventory-based model, the e-commerce company holds inventory of the goods it sells. It acts as a retailer and owns the products it sells on its platform. The e-commerce firm is responsible for the storage, packaging, and delivery of the products to the customers.
Statement 3: 100% FDI is allowed in e-commerce companies in the marketplace model.
This statement is incorrect. As per the current Foreign Direct Investment (FDI) policy in India, 100% FDI is not allowed in e-commerce companies in the marketplace model. The government has placed restrictions on FDI in the marketplace model to protect the interests of small traders and retailers. However, 100% FDI is allowed in the inventory-based model, where the e-commerce company owns the goods it sells.
Conclusion:
Among the given statements, statement 1 and statement 3 are incorrect. The correct answer is option A, which states that 1 and 2 are incorrect. In India, the e-commerce sector operates through both the marketplace model and the inventory-based model, with different FDI regulations applied to each model.
Statement 2: Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.
Statement 3: 100% FDI is allowed in e-commerce companies in the marketplace model.
Explanation:
The e-commerce sector in India has seen significant growth in recent years due to the increasing adoption of technology and internet penetration. There are primarily two models of e-commerce operations in India - the marketplace model and the inventory-based model. Let's analyze each statement in detail:
Statement 1: Marketplace model is where goods sold on the portal are owned or controlled by the e-commerce company.
This statement is incorrect. In the marketplace model, the e-commerce company acts as an intermediary platform that connects buyers and sellers. The goods sold on the portal are not owned or controlled by the e-commerce company. The e-commerce company only facilitates the transaction between the buyer and the seller and may charge a commission or fee for the services provided.
Statement 2: Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.
This statement is correct. In the inventory-based model, the e-commerce company holds inventory of the goods it sells. It acts as a retailer and owns the products it sells on its platform. The e-commerce firm is responsible for the storage, packaging, and delivery of the products to the customers.
Statement 3: 100% FDI is allowed in e-commerce companies in the marketplace model.
This statement is incorrect. As per the current Foreign Direct Investment (FDI) policy in India, 100% FDI is not allowed in e-commerce companies in the marketplace model. The government has placed restrictions on FDI in the marketplace model to protect the interests of small traders and retailers. However, 100% FDI is allowed in the inventory-based model, where the e-commerce company owns the goods it sells.
Conclusion:
Among the given statements, statement 1 and statement 3 are incorrect. The correct answer is option A, which states that 1 and 2 are incorrect. In India, the e-commerce sector operates through both the marketplace model and the inventory-based model, with different FDI regulations applied to each model.
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Consider the following statements regarding E-commerce sector in India1. Marketplace model is where goods sold on the portal is owned or controlled by the ecommercecompany.2. Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.3. 100% FDI is allowed in e-commerce companies in marketplace model.Which of the above statements is/are incorrect?a)1, 2b)3 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer?
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Consider the following statements regarding E-commerce sector in India1. Marketplace model is where goods sold on the portal is owned or controlled by the ecommercecompany.2. Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.3. 100% FDI is allowed in e-commerce companies in marketplace model.Which of the above statements is/are incorrect?a)1, 2b)3 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Consider the following statements regarding E-commerce sector in India1. Marketplace model is where goods sold on the portal is owned or controlled by the ecommercecompany.2. Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.3. 100% FDI is allowed in e-commerce companies in marketplace model.Which of the above statements is/are incorrect?a)1, 2b)3 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding E-commerce sector in India1. Marketplace model is where goods sold on the portal is owned or controlled by the ecommercecompany.2. Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.3. 100% FDI is allowed in e-commerce companies in marketplace model.Which of the above statements is/are incorrect?a)1, 2b)3 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer?.
Consider the following statements regarding E-commerce sector in India1. Marketplace model is where goods sold on the portal is owned or controlled by the ecommercecompany.2. Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.3. 100% FDI is allowed in e-commerce companies in marketplace model.Which of the above statements is/are incorrect?a)1, 2b)3 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Consider the following statements regarding E-commerce sector in India1. Marketplace model is where goods sold on the portal is owned or controlled by the ecommercecompany.2. Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.3. 100% FDI is allowed in e-commerce companies in marketplace model.Which of the above statements is/are incorrect?a)1, 2b)3 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding E-commerce sector in India1. Marketplace model is where goods sold on the portal is owned or controlled by the ecommercecompany.2. Inventory-based model is where the e-commerce firm simply acts as a platform that connects buyers and sellers.3. 100% FDI is allowed in e-commerce companies in marketplace model.Which of the above statements is/are incorrect?a)1, 2b)3 onlyc)2, 3d)1, 2, 3Correct answer is option 'A'. Can you explain this answer?.
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