E-Commerce

The marketplace has always been a battleground between buyers and sellers. With industrialization, sellers gained an information advantage, leading governments to implement regulations like maximum retail price (MRP) to protect consumers. E-commerce has shifted the balance, offering consumers more price transparency and forcing sellers to adapt. Online shopping leaves a digital trail, allowing sellers to gain insights into consumer behavior and price sensitivity. Sophisticated algorithms are now being developed to achieve “perfect price discrimination,” where each buyer pays exactly what they perceive a product is worth. In this new paradigm, traditional concepts like MRP may become redundant.

2016 was a transformative year, marked by the e-commerce sector’s challenges following the Indian government’s Press Note 3. This led to innovative business models and growth in related industries like logistics and warehousing. The year also saw Aadhaar enrolment surpass 1 billion, laying the foundation for India’s digital transformation. The introduction of India Stack, particularly the Unified Payment Interface (UPI), revolutionized digital payments. However, the focus shifted towards including the larger, underserved population in the digital economy, highlighting the need for a balanced policy framework that respects privacy while leveraging data-driven decision-making.