E-commerce firms shouldn't permit over 25% of the sales value on fiscal year basis from one vendor

The government has clarified in the FDI consolidated policy circular that an e-commerce entity will not permit more than 25% of the sales value on financial year basis affected through its marketplace from one vendor or their group companies.

This is meant to push e-commerce firms to sell goods from many vendors. 

In a tweet, the DIPP said restriction of 25% on sales of one vendor through a marketplace are to be computed on financial year basis. 

The government had earlier mandated 25 per cent maximum sales from a single vendor but had not specified the period for computation of sales.