The online retail segment had plans to hire additional staff of around 200,000 but has now dropped them, as per a report in the Economic Times. This, after the government changed its earlier stand that the e-commerce firms would be permitted to sell non-essential items as part of the calibrated opening up of the economy even as the lockdown stands extended till May 3. Amazon and Flipkart are already sitting over a huge pile of orders which could not be executed and there is a general expectation that the overall business will increase for the online sellers post the lockdown period as well. Based on these assessments, the companies had plans to recruit additional hands.

The government reversed its earlier decision and stuck to the essential goods only stipulation for booking orders and making deliveries. Some sources say, it was the offline retailers body Confederation of All India Traders (CAIT) that brought pressure on the government to change its decision. They felt their shops should also be allowed to be opened to offer a level playing field.

Incidentally, the small sellers on the e-commerce platforms are the ones taking the maximum hit since they have not been able to make any sale during the whole month. They are also saying that they had hoped the lifting of restrictions after April 20, would have meant some business for the month and they would have protected the salaries to their employees. Now with zero revenue for the whole month, they are seriously contemplating laying off of some or all of their staff till the situation improves.

The e-commerce companies themselves are bleeding. There have been calls that the government may expand the list of essential goods to include a number of other essential items like laptops etc.