What's wrong with e-Commerce Bill?

The proposed e-commerce bill in Nepal has raised significant concerns among entrepreneurs and startups in the country. While the intention behind regulating the e-commerce sector is understandable, it is crucial to carefully assess the potential implications of the bill on startups and entrepreneurs. Unfortunately, the current proposal does not adequately support and foster the growth of this emerging sector, posing challenges and hindering innovation.

One of the most problematic aspects of the proposed bill is the burden it places on intermediaries regarding warranties and guarantees. Unlike global laws that hold platform providers responsible for addressing customer issues and facilitating communication with sellers, the bill in Nepal shifts this responsibility solely onto intermediaries. This approach fails to strike a fair balance, as platforms are intermediaries connecting buyers and sellers, not direct sellers themselves. Imposing such obligations on intermediaries creates additional financial and operational burdens for e-commerce startups, diverting their focus from growth and customer satisfaction.

Additionally, the requirement for written contracts between sellers and platform providers is impractical and burdensome, particularly for platforms with a large number of sellers. For example, platforms like Hamrobazar, where thousands of new sellers list their products everyday, it is simply not feasible to expect written contracts with each individual seller. Such a requirement contradicts the very essence of convenience and ease of doing business that e-commerce platforms offer. To streamline the process, a more flexible approach, such as adopting globally accepted methods like the "I accept" document, would ensure legal compliance while promoting efficiency.

The bill's stringent guidelines for product descriptions also present challenges for e-commerce startups. Mandating the inclusion of 7-8 specific pointers in product descriptions is unrealistic for platforms operating in a consumer-to-consumer (C2C) environment. E-commerce platforms host a diverse array of products and services, making it difficult to enforce rigid guidelines. Imposing such constraints inhibits sellers' ability to provide innovative and unique product descriptions, potentially limiting their competitiveness and hindering their ability to attract customers. Instead, guidelines that prioritize transparency and accuracy while allowing for flexibility would better serve the dynamic e-commerce landscape.

Furthermore, the bill's requirement for every e-commerce company to have an app, website, or software to operate legally is another obstacle to innovation. Not all entrepreneurs and startups may require or desire a conventional website or app to test their ideas or sell their products. E-commerce encompasses various business models, including social media platforms and emerging channels. By mandating strict technological requirements, the bill limits entrepreneurial creativity and restricts the potential for novel approaches to e-commerce. Embracing a more flexible perspective that embraces diverse business models and encourages innovation would foster a thriving entrepreneurial ecosystem.

In conclusion, while it is essential to have regulations in place to ensure consumer protection and promote fair business practices, it is equally important to strike a balance that supports the growth and innovation of the e-commerce sector. The current proposed e-commerce bill in Nepal, in its current form, does not sufficiently cater to the needs of startups and entrepreneurs. The provisions related to intermediary responsibility, written contracts, product descriptions, and mandatory software usage create significant challenges that impede the growth of e-commerce businesses. Policymakers should reassess these aspects, engage in meaningful dialogue with stakeholders, and craft a more inclusive and supportive framework that encourages entrepreneurship, innovation, and sustainable growth in the e-commerce sector.