Though the actual impact depends on the enforcement of the said guidelines, the association said in a statement.
It said the condition that an e-commerce firm will also not be permitted to sell more than 25 per cent of total sales from one vendor or its group companies will prevent marketplaces from behaving like pseudo retailers and ensure that they stay true to their claim of being technology platforms.
The guidelines stating that a marketplace cannot offer warranty or guarantee for products sold on their platform will ensure that they do not make promises on behalf of sellers to influence purchase decisions, he said.
"Since marketplaces cannot offer any warranty or guarantee on products, the promises they offer today are untenable under the policy," Biyani added.
More From This Section
RAI had been calling the government's attention to the impact on retailers due to the lack of clarity on B2C based Ecommerce disguised as B2B commerce.
"RAI had petitioned the government to give clear policy directions on FDI in ecommerce with the aim of safeguarding the interests of retailers as well as customers," it said.
RAI CEO Kumar Rajagopalan said that retailers traditionally have been welcoming marketplaces in the form of malls in the brick and mortar space.
"This clarification will hopefully ensure that marketplaces collaborate with retailers like online malls," he added.
Further it said that marketplaces will have to mention the names, addresses and contact details of the sellers across all communications which will bring in transparency for customers.
"Considering that inventory based e-commerce is now explicitly prohibited, many e-commerce players offering groceries and private brands which are all inventory based servicing or being serviced by just one seller, would have to immediately cease operations," RAI said.