Solving challenges in the new age of digital commerce

Consumer behavior in India has experienced a paradigm shift at the most fundamental levels. The rise in smartphone usage due to affordable data plans has catalyzed an online revolution in the country. novel coronavirus The pandemic has further accelerated the process of digital inclusion, and it is now routine to not only transact online and have food, personal care items or anything delivered at one’s doorstep, but also online learning, medical consultation It is also common to do online, and even resolve disputes online.

These realizations have given India an opportunity to disrupt the status quo with its innovative capabilities. The Unique Identification Authority of India (UIDAI) and systems like Aadhaar, Unified Payments Interface (UPI) and Ayushman Bharat Digital Mission have reshaped the markets.

Despite the rapid development of digital platforms on the one hand and the prevalence of Internet-enabled phones on the other, small enterprises such as local Grocery The shops have not got the benefit of this. Online shopping lives in a digital void, from “near and now” inventory from local stores. This is because, in order to sell on multiple platforms, sellers must maintain a separate infrastructure, which only adds cost and limits participation. The different terms and conditions of each platform further limit the flexibility of sellers. As a result, small and medium-sized businesses have lost the freedom to choose and participate in the country’s e-commerce system at will and on their own terms. Worryingly, centralizing digital commerce transactions on a single platform creates a single point of failure.

Wide choice and access

With this objective, the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India Open Network for Digital Commerce (ONDC) set up Leveling the playing field by developing open e-commerce and enabling access to small businesses and dealers. ONDC Network makes it possible for products and services of all participating e-commerce platforms to appear in search results across all network apps. For example, a consumer shopping for a product on an e-commerce app named “X” will also receive results from an e-commerce app named “Y” if both X and Y integrate their platform with ONDC. Huh. This achieves the twin objective of accessing wider consumer base for the consumers on the one hand and wider consumer base for the sellers on the other.

ONDC started its pilot in April 2022 in five cities, i.e. New Delhi, Bengaluru, Coimbatore, Bhopal and Shillong. Currently, the pilot has expanded to 18 cities, with immediate plans to add more cities. India’s e-commerce industry is set to reach $200 billion by 2027, catalysing the democratization of the country’s online market from a platform-centric paradigm involving millions of small business owners and Grocery businesses.

better results

Controversies will be the obvious byproduct of this e-commerce revolution. Therefore, it is imperative to support this initiative with a modern, cost effective, timely and high speed dispute resolution system. The framework should adequately and efficiently address aspects such as the wide spread of low-value online transactions and participants living or operating in different geographies. Online dispute resolution, or ODR, as it is popularly called, has a tendency to work with existing setups and deliver quick, economical and implementable results. ODR is not limited to the use of legal mechanisms such as arbitration, conciliation and arbitration in the online environment, but can be tailored for the specific use case taking into account the participants. While ODR typically includes case management systems, integration of communication technologies such as email, SMS, WhatsApp, interactive voice response, audio/video conferencing, overtime, and appropriate data sets, it may also include the use of advanced automation, technologies such as Such as artificial intelligence and machine learning at the same time to enable resolution to initiate transactions on the network.

From simplifying dispute resolution to settling complex multi-party disputes; From remote areas to round-the-clock access to regional languages; From enabling a safe and secure online infrastructure to ensuring minimum touchpoints, ODR can not only digitize the entire value chain, but can also facilitate an enhanced user experience.

Many e-commerce companies have turned to ODR with the realization that it is important to ensure a positive dispute resolution experience to maximize transactions. For example, the eBay Resolution Center uses ODR and resolves more than 60 million disputes between small merchants each year through a platform that enables dealers and buyers to communicate directly and for the most part. for, without the assistance of any third party. Alibaba, one of the world’s largest retailers and e-commerce companies, has also adopted ODR to resolve disputes arising out of transactions on the platform.

Adoption numbers are on the rise

ODR is no longer a distant dream even for India. Governments, regulators and private enterprises have been adopting and encouraging its use. For example, the National Payments Corporation of India (NPCI) has mandated platforms in the UPI ecosystem to adopt ODRs for complaints and complaints related to unsuccessful transactions. Ingram, SEBI Score (or Securities and Exchange Board of India SEBI Com announced Redress System), RBI CMS (or Reserve Bank of India Grievance Management System), MahaRERA (or Maharashtra Real Estate Regulatory Authority), MSME Solutions (or Micro, Small and Medium Enterprise Delayed Payment Monitoring System), and RTOnline (or Right to Information Online) are other examples of ODR systems that are widely used in the country.

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ODRs will help reduce the risk of litigation and provide valuable insight into the problems faced by consumers. Courts and consumer forums can eliminate cases that do not require their intervention, thus reducing judicial impasse. Another option is provided to the consumers for effective redressal of their grievances, thereby building trust, confidence and brand loyalty. A dispute resolution framework that includes an optimized ODR process, the network’s role in achieving its five-year goal of adding $48 billion in gross merchandise value across India’s e-commerce market, a network of 90 million buyers and 120 million sellers can perform. Least hiccups.

Bhaven Shah is the co-founder of Presolv360, an online dispute resolution company. Siddharth Kapoor is an advocate in Delhi High Court and is a member of Presolv360. work with