A recent report by the India SME Forum (ISF) sheds light on the enduring dominance of major e-commerce platforms like Amazon and Flipkart among Micro, Small, and Medium Enterprises (MSMEs) for sales. The study, conducted by the Forum for Internet Retailers, Sellers, and Traders (FIRST) India, a division of ISF, provides year-end insights into the impact of e-commerce during the 2023 festive season, showcasing a significant surge in online retail activity.
Key Findings from the Report
Online Sales Surge: Drawing data from over 32,000 respondents nationwide, the study revealed that approximately 80% of sellers derived their revenues from online and e-commerce sales. This underscores the growing importance of digital platforms in shaping the sales landscape for MSMEs.
Sales Doubling for Many: Among the sellers who participated in the study, an impressive 60% noted a doubling in their sales through online channels. This signals a notable shift in consumer behavior and a heightened reliance on e-commerce platforms for making purchases.
Year-on-Year Increase: A striking 90% of the respondents reported a minimum 30% year-on-year increase in online sales. This indicates a sustained and substantial growth trajectory for MSMEs engaged in online retail, showcasing the resilience and adaptability of these businesses.
Vinod Kumar, President of the India SME Forum and Trustee and President of FIRST India, commented on the findings, expressing optimism about the future. He stated, “From an estimated Rs 90,000 crore this year, we anticipate festive sales to surge beyond Rs 1,00,000 crore in 2024, as we continue guiding these enterprises towards a trajectory of prosperity by integrating offline and online retail.”
This statement emphasizes the Forum’s commitment to steering businesses toward growth by seamlessly merging traditional offline avenues with the dynamic digital landscape, showcasing a holistic approach to fostering prosperity.
Projected Growth and Factors Driving E-commerce Expansion
The report’s revelations not only highlight the current dominance of e-commerce but also project a robust trajectory for the online retail sector. The study anticipates a significant leap to $350 billion within the next five years. Several factors contribute to this projected growth, including increased smartphone usage, escalating digital adoption rates, and governmental initiatives such as Digital India and One District-One Product. These factors collectively propel the expansion of e-commerce, positioning it as a key driver of economic growth.
The India SME Forum’s report provides valuable insights into the evolving landscape of MSMEs in the context of e-commerce. The surge in online retail activity, coupled with the projected growth, underscores the transformative impact of digital platforms on the business landscape. As MSMEs continue to adapt and integrate online channels into their operations, the future holds promising opportunities for growth and prosperity in the dynamic world of e-commerce.