Coronavirus lockdown guidelines | Amazon, others seek clarity on movement of goods

E-commerce companies have sought clarification from the government over the movement of goods after a new set of guidelines issued on April 15 failed to clarify if they will be able to move products across the country or only in the coronavirus-free areas.

All major cities are reporting infections, which means there is a high probability that e-commerce transactions will not be allowed in those areas even after April 20 when the new norms kick in, industry insiders say. Since there is no specific mention of essential goods, the assumption is the movement of all products will be allowed.

“In line with the guidelines announced by the Government of India and also in collaboration with all states governments and local authorities, we will continue to serve consumers to promote social distancing through our sanitised supply chain, contact-less deliveries and healthy and safe last-mile delivery process,” a Flipkart spokesperson said.

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The Walmart-owned e-commerce giant has partnered with retail players, including kirana stores, to get their products delivered at the doorstep as more than 1.3 billion people stay indoors to break the chain of infections.

A spokesperson for rival Amazon said the company was evaluating the guidelines and had sought clarifications from the authorities. The resumption of services would depend on the availability of labour, which was critical.

Logistics players who support e-commerce companies in their deliveries told Moneycontrol that they needed more clarity from the government on what was allowed and the areas that would be opened. Only then they can restart delivering shipments.

“Metro cities account for the major chunk of transactions but these places are all ‘hotspots’. Will the government allow e-commerce movement in these areas? Not very sure,” said Pranshu Kacholia, vice president, business, Clickpost.

The company offers logistics software to many e-commerce firms.

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Smaller logistics players may also come online as the notification specifically mentioned courier services to get operational. This will help micro-businesses to start shipping their goods. But it will all depend on the number and spread of infections.

One major product that needs urgent delivery is textbooks and electronic items, especially for children as the new school year has started and schools have moved classes online.

A survey by LocalCircles, an online social community platform,  found that parents want the government to urgently add stationary, laptops and computers to the list of essential items.

While e-commerce goods can be shipped, the need now is to get the small-sellers active, say industry insiders. This segment completely shut down after the first phase of the lockdown that began on March 25.

“As of now, e-commerce platforms will look to release all the inventory they are carrying, maybe past orders might get cleared first,” said a top executive with an e-commerce startup on condition of anonymity.

Industry estimates suggest it will take at least three to four months for e-commerce volumes to reach 70% of the pre-Covid days in urban areas and 50% in rural areas.

Prime Minister Narendra Modi on April 14 extended the nationwide lockdown to May 3 but said guidelines would be issued to restart some economic activity after April 20.

(With inputs from M Sriram)