{"id":370628,"date":"2026-08-29T17:43:28","date_gmt":"2026-08-29T12:13:28","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=370628"},"modified":"2026-08-29T17:43:28","modified_gmt":"2026-08-29T12:13:28","slug":"safeguarding-small-sellers-in-the-e-comm-space","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/safeguarding-small-sellers-in-the-e-comm-space\/","title":{"rendered":"Safeguarding small sellers in the e-comm space"},"content":{"rendered":"<p><strong>Source: <\/strong>The post <strong>\u201cSafeguarding small sellers in the e-comm space\u201d <\/strong>has been created based on<strong> &#8220;Safeguarding small sellers in the e-comm space\u201d <\/strong>published in <strong>\u201cIndian Express\u201d on 25th August 2026.<\/strong><\/p>\n<p><strong>UPSC Syllabus: <\/strong>GS 2- International Relations<\/p>\n<p><strong>Context: <\/strong>India is increasingly using <strong>cross-border e-commerce<\/strong> to connect small producers, artisans and MSMEs with global consumers. The <strong>DGFT Notification 27\/2026-27 and Public Notice No. 25\/2026-27<\/strong>, issued on August 5, 2026, operationalise the <strong>Inventory-based Cross-Border E-Commerce Facilitation Framework<\/strong> while introducing safeguards for small sellers.<\/p>\n<h2 class=\"yellow-h2-box\"><strong>Key concerns for small sellers<\/strong><\/h2>\n<ul>\n<li>Large e-commerce intermediaries may gain excessive control over <strong>pricing, customer ownership and market information<\/strong>.<\/li>\n<li>Small producers may become dependent on intermediaries without knowing the <strong>final overseas sale price or consumer demand<\/strong>.<\/li>\n<li>MSMEs may also face risks related to <strong>unfair deductions, returns, discounts, damaged inventory and rejection of goods<\/strong>.<\/li>\n<li>There are concerns regarding <strong>unauthorised rebranding, copying of designs and misuse of trademarks<\/strong>.<\/li>\n<\/ul>\n<h2 class=\"yellow-h2-box\"><strong>Major safeguards introduced by DGFT<\/strong><\/h2>\n<ol>\n<li><strong>Clear distinction between participants<\/strong>\n<ol style=\"list-style-type: lower-alpha;\">\n<li>The framework distinguishes between the <strong>Exporter-on-Record (EOR)<\/strong>, who manages exports and inventory, and the <strong>Seller-on-Record (SOR)<\/strong>, whose goods are procured for export.<\/li>\n<li>This recognises that the logistical exporter and the actual producer need not be the same entity.<\/li>\n<\/ol>\n<\/li>\n<li><strong>Greater transparency<\/strong>\n<ol style=\"list-style-type: lower-alpha;\">\n<li>The EOR must maintain a digital repository connecting <strong>procurement records, GST invoices and export documents<\/strong> with individual sellers.<\/li>\n<li>Sellers must receive information on the <strong>final overseas sale price, order status, shipment tracking and destination country<\/strong>.<\/li>\n<\/ol>\n<\/li>\n<li><strong>Access to export benefits<\/strong>\n<ol style=\"list-style-type: lower-alpha;\">\n<li>Seller-attributable export benefits must reach the SOR.<\/li>\n<li>The administrative charge retained by the EOR cannot exceed <strong>10% of export rebates and refunds<\/strong>, and attributable benefits must be transferred within <strong>30 days<\/strong> of receipt.<\/li>\n<\/ol>\n<\/li>\n<li><strong>Accountability and compliance<\/strong>\n<ol style=\"list-style-type: lower-alpha;\">\n<li><strong>Independent compliance certification<\/strong> and preservation of records for <strong>five years<\/strong> strengthen transparency and accountability.<\/li>\n<\/ol>\n<\/li>\n<li><strong>Dispute resolution<\/strong>\n<ol style=\"list-style-type: lower-alpha;\">\n<li>Sellers can approach the concerned <strong>DGFT Regional Authority<\/strong> for dispute resolution.<\/li>\n<li>The existing rights of micro and small enterprises under the <strong>MSMED Act<\/strong>, including access to the <strong>MSE Facilitation Council<\/strong>, remain unaffected.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<h2 class=\"yellow-h2-box\"><strong>Measures to further strengthen the framework<\/strong><\/h2>\n<ol>\n<li>A <strong>model EOR-SOR agreement<\/strong> should be developed for micro and small enterprises, clearly specifying procurement prices, commissions, deductions, returns, discounts and damaged inventory.<\/li>\n<li><strong>Retrospective price reductions or deductions<\/strong> should generally be prohibited after goods have been accepted into export inventory.<\/li>\n<li>Sellers should receive a simple <strong>digital dashboard<\/strong> containing information on exports, destinations, realised prices, returns, discounts and export benefits.<\/li>\n<li>Stronger protection should be provided for <strong>Indian brands, trademarks, handicrafts, handlooms and GI products<\/strong> against unauthorised rebranding and copying.<\/li>\n<li>The framework should balance seller protection with the legitimate costs and returns of EORs, which provide <strong>warehousing, technology, logistics, marketing, fulfilment and global market access<\/strong>.<\/li>\n<\/ol>\n<h2 class=\"yellow-h2-box\"><strong>Way Forward<\/strong><\/h2>\n<ol>\n<li>India should aim for a <strong>partnership-based e-commerce ecosystem<\/strong> rather than excessive regulation.<\/li>\n<li>The EOR should earn through logistics, technology, fulfilment and market access, while the SOR should retain <strong>timely payments, export benefits, brand protection and access to market information<\/strong>.<\/li>\n<li>The pilot phase should be used to improve the framework and ensure that e-commerce becomes <strong>shared export infrastructure for MSMEs<\/strong>.<\/li>\n<\/ol>\n<p><strong>Conclusion: <\/strong>The success of the framework should not be measured merely by the <strong>volume of exports through e-commerce warehouses<\/strong>. Its real success will lie in enabling <strong>Indian micro and small enterprises to become stronger, more profitable and globally competitive without surrendering their economic identity<\/strong>.<\/p>\n<p><strong>Question:<\/strong> The inventory-based cross-border e-commerce model can expand India\u2019s export potential, but may also create risks for small sellers. Discuss the safeguards introduced by DGFT and suggest measures to further protect MSMEs.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindubusinessline.com\/opinion\/safeguarding-small-sellers-in-the-e-comm-space\/article71393525.ece\"><strong>Business Line<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post \u201cSafeguarding small sellers in the e-comm space\u201d has been created based on &#8220;Safeguarding small sellers in the e-comm space\u201d published in \u201cIndian Express\u201d on 25th August 2026. UPSC Syllabus: GS 2- International Relations Context: India is increasingly using cross-border e-commerce to connect small producers, artisans and MSMEs with global consumers. The DGFT&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/safeguarding-small-sellers-in-the-e-comm-space\/\">Continue reading <span class=\"screen-reader-text\">Safeguarding small sellers in the e-comm space<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[212,10500,239],"class_list":["post-370628","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","tag-gs-paper-2","tag-indian-express","tag-international-relations","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/370628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=370628"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/370628\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=370628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=370628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=370628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}