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· Adullam columnE-commerce FDIOfficial

Marketplace vs inventory model

Summary

If the platform owns the inventory, foreign investment is not allowed; if it only connects sellers and buyers, it is 100% automatic route.

Key points
  • Korean companies set up an Indian entity and list as the seller
  • One seller above 25% raises inventory-control concerns
  • The platform cannot touch the selling price
What it means for Korean companiesKeep a structure in which the seller, your Indian entity, sets prices.

More

· Legal 500 (IndiaLaw LLP)Consumer protectionOfficial

Seller obligations changing from 1 January 2027

Under the amended e-commerce consumer protection rules, marketplace sellers must display government identification numbers and disclose origin, best-before dates and other details upfront. Platform duties also grow, so platforms will ask sellers for more data.

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· Indian Television (Redseer estimate, citing PTI)Market size

Festive sale season: what sells and who buys

Redseer estimates phones and electronics made up around 60% of first-two-day sales, while fashion was 15–18%, up 22–25% year on year. Two-thirds of buyers were from tier-2/3 towns and rural areas.

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Marketplace vs inventory model · Adullam Commerce & Marketing