In today’s world, everything from a needle to a house is available online to the common people, then why our Government is left behind? Such e-commerce sites not only saves our time but also makes shopping cheaper by eliminating middle-men which are present in the retailer’s chain of business. So, our government has also participated in this e-commerce business race where they have created a single portal/platform for online procurement of common goods and services which is required by various Government Departments/Ministries/Organizations/PSUs, autonomous bodies etc.
[India has observed tremendous growth in online shopping. Thus, every brick and mortar owner has started focusing on various e-commerce platforms such as Flipkart. To know more about selling on e-commerce platforms such as Flipkart, read our article “How to sell on Flipkart?“]
- 1 What does Government e Marketplace mean?
- 2 Features of Government e-Marketplace
- 3 Benefits of Government e Marketplace
- 4 How to Start Business as a Seller on GeM?
- 5 Need Help? Please fill below form to Get in touch
What does Government e Marketplace mean?
The Government has introduced a one-stop portal for online procurement of common goods and services required by Government Departments/Organizations/PSUs, etc. known as Government e-Marketplace (GeM). This platform was introduced with an aim to erase corruption and various other loopholes in the system which were created due to the bureaucratic ways of Government processes. This platform also focuses on bringing speed, transparency and efficiency in public procurement. The Government e Marketplace is an exceptionally bold step taken by the Indian Government. This transforms the way in which different Government Ministries/Departments, PSUs, Autonomous Bodies, etc. acquire goods/services and executes venture. GeM makes available instruments of e-bidding, reverse e-auction and demand aggregation to help the government procurers to get the maximum value for their money. It is actually ‘procurement made smart’ step by the Government.
Background: The introduction of Government e-Marketplace (GeM) was due to the proposals given by the Group of Secretaries to the Hon’ble Prime Minister Mr. Narendra Modi in January 2016. These groups of Secretaries advised the setting up of a dedicated e-market for various products and services which can be bought or sold by the Government/PSUs and hence improvising the Directorate General of Supplies and Disposals (DGS&D). The Hon’ble Finance Minister Mr. Arun Jaitley during his 2016-17 budget declared the setting up of such e-marketplace.
DGS&D along with the expertise of National e-Governance Division, i.e. NeGD created a GeM portal for procurement of both goods and services which was launched on 09th August 2016 by the Hon’ble Commerce and Industry Minister. Currently GeM POC portal provides more than 7400 products across 150 product categories and transport hiring service. Transactions of more than Rs. 140 Crore has already been processed through the GeM portal till date. It is completely paperless, cashless, technology and framework driven by an e-commerce platform with the negligible human interface. The platform can be visited at https://gem.gov.in/.
Features of Government e-Marketplace
Features of GeM
Benefits of Government e Marketplace
The Government e Marketplace offers several benefits to the Government, individual sellers and also to the Indian Industry and Economy as a whole. Let’s find out some of the benefits it provides to its different stakeholders:
- It offers a wide range of posting an item under a single class of goods and services.
- It serves you with an option for searching, comparing, selecting (i.e. add to cart or wishlist) and finally buying the facility.
- Provides you a platform to make online purchases of goods and services at ease.
- Makes purchasing easy with minimum human interface and time consumption, with direct contact with the seller(s).
- Transparent and 100% genuine vendor rating system.
- Provides easy, smooth and uninterrupted dashboard for buying, checking supply status and payment options.
- Provides superfluous exchange and return policy.
- Direct access to all Government offices.
- One-stop search for marketing and advertisement with least amount of efforts.
- One-stop search for bids/ reverse auction on goods/services.
- New Product Suggestion facility for the sellers.
- Dynamic (Flexible) Pricing system, i.e. prices can be changed as per the prevalent conditions of the market.
- Seller friendly dashboard for selling and monitoring of supplies and payments.
- Consistent and uniform purchasing procedure across all categories of goods and services.
[In India, Paytm is an e-commerce platform which offers opportunities to sellers to showcase their products online and increase their customer reach. To know more read our article “How to sell on Paytm?“]
Common Benefits for the Stakeholders
- Transparency: GeM provides almost zero human interference in seller registration, goods availability, placements, payment modes and procedures. Since, it is an open and digital platform, it has no entry barriers for bonafide and genuine sellers who want to do business with the government.
- Efficiency: Purchasing on GeM can be done within a few minutes where the entire procurement process is online. It also provides an end-to-end integration with the availability of online instruments for assessing prices fluctuations and reasonability.
- Secure and Safe: GeM is entirely a secured platform where all the documents on GeM are e-Signed at multiple stages by the buyers and sellers. The past suppliers are verified online and automatically through MCA21, Aadhar and PAN Databases. EEBI enlisted FICO assessment offices to conduct a third-party assessment of the suppliers.
- Savings: Transparency, efficiency and the superfluous structure of the GeM portal have resulted in a drastic reduction in the prices of the goods and services available on the GeM in comparison to the Tender, Rate Contract, and Direct Purchase rates. The average prices on GeM are lower by at least 15-20% and in some cases even by 56%.
How to Start Business as a Seller on GeM?
The term ‘Seller’ is a firm(s) i.e. a proprietorship/partnership firm, a Limited Liability Partnership/Private firm, a Limited Company/Society registered under Society’s Act that offers its Goods and Services on GeM and agrees to accept the order placed by the ‘Buyer(s)’ for the Goods and Services as per the terms and conditions of GeM. Sellers registered on the GeM are “OEMs” i.e. Original Equipment Manufacturers or their authorized channel partner(s)/agent(s) having any general authorization or dealership to sell their goods in an open market and the e-Marketplaces. The Steps to start selling on GeM are as follows:
Any individual who wants to start selling on GeM portal needs to register his/her business, it can be a proprietorship firm, partnership firm, Limited Liability Partnership, Private Limited Company and Public Limited Company.
For Tax Registration Aadhar card, PAN card and GSTN registration number are required.
[In India, incorporating your company as per the Government regulations and registering for the GST is very beneficial for the business. To know more about these registrations, read our articles on “How to Register a Company in India?” and “GST Registration Process“]
Bank Account Link
It is mandatory to open a new bank account in the name of the business firm.
GeM service provider or GeM seller registration will be completed only when online registration is done for the seller/service provider and all the necessary information and documents are submitted.
E-Sign Terms and Conditions
Once all the requisite forms are filled up by the seller/service provider, GeM terms and conditions needs to be e-signed i.e. digitally signed.
Before starting the selling of goods and services, a seller must learn about the GeM dashboard, procedures and how to sell on GeM portal.
After incorporating your company and thorough study of the GeM portal, you can start selling on this platform.
The Government e-Marketplace (GeM) is a successful online platform consisting of vigilant buyers as well as genuine sellers. This lead the Nation into the right direction of ‘Make In India’, thus crushing the cancerous roots of corruption and bringing a transparent and free trade market. If you have any queries related to the above-given article, please do fill the form given below to get in touch with us.