German’s Metro, which operates cash-and-carry stores in India, also did not comment on its e-commerce plans. Metro’s policy ambiguity and challenges around the logistics and the business model in e-commerce might hold it back from proceeding further according to various sources. It also plans to set up 50 stores in India by 2020, as India is its ‘focus market,’ just as its competitor Walmart mentioned.

India’s e-commerce market was around $13 billion in 2013, according to a report by KPMG and the Internet and Mobile Association of India, which is a relatively small number compared to China’s $300 billion, but it’s still a substantial figure with plethora of room for growth.

In such a scenario, the existing B2B and B2C segments are very different from that of Alibaba, which offers products that are not available online.

“Apart from policy ambiguity, there are questions over the business model and scale that e-commerce operations require. B2B works on thin margins, we have to assess whether we can provide cash on delivery or how compliance will be taken care of,” said an industry insider who did not want to be named.

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