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E-Commerce Empowering MSMEs During Festive Season

By Darsh Jain --
Tuesday, 17 Oct, 2023

According to a recent study by Redseer Strategy Consultants, it is expected that Indian E-commerce sales during the festive season will touch 90,000 crores approximately in CY 23–24, marking an impressive 18–20% growth compared to the previous year’s festive month sales. This growth is expected to be driven by a significant user base of around 140 million shoppers projected to make online transactions during this festive month.

Amazon India said 95 million customers visited their platform in the first two days of their flagship Great Indian Festival.

It is noted that sellers who have been selling their products online for a longer period of time are enjoying a higher sales share from online platforms than those who started selling recently. For sellers who have been selling online for more than 3 years, their revenue share from online sources is more than 50%. However, sellers with less than 3 years of online sales experience are only able to capitalize on up to 40% of their total revenue from digital means.

The minimum revenue jump is expected to be 15% for MSMEs, with 26?ing the median growth rate of revenue. Amazon in a statement said, “Small sellers on its platform had 35% higher sales compared to last year in the first two days of its season sale”.

MSMEs are willing to spend 40–50% more on marketing than the previous year in order to generate high sales figures.

Both Meesho and Amazon observed the fact that about 80% of their customers are from non-metropolitan region during the initial two days of sale.

When businesses were asked about the benefits of selling online, it was highlighted that businesses are focusing on electronic means to relish the benefits like increased sales from target marketing, deeper customer understanding, higher visibility, and larger addressable market than optimising functional cost by lowering procurement cost and physical store cost.

The seller’s margin is expected to rise as customers demand in product categories such as mobiles, appliances, lifestyle, beauty and general merchandise (BGM), electronics, and home décor, which generally have high ticket size and low carrying cost.

Effective logistics and management can ensure MSME’s festive season success.

E-Commerce Empowering MSMEs During Festive Season. According to a recent study by Redseer Strategy Consultants, it is expected that Indian E-commerce sales during the festive season will touch 90,000 crores approximately in CY 23–24, marking an impressive 18–20% growth compared to the previous year’s festive month sales. This growth is expected to be driven by a significant user base of around 140 million shoppers projected to make online transactions during this festive month.

Amazon India said 95 million customers visited their platform in the first two days of their flagship Great Indian Festival.

It is noted that sellers who have been selling their products online for a longer period of time are enjoying a higher sales share from online platforms than those who started selling recently. For sellers who have been selling online for more than 3 years, their revenue share from online sources is more than 50%. However, sellers with less than 3 years of online sales experience are only able to capitalize on up to 40% of their total revenue from digital means.

The minimum revenue jump is expected to be 15% for MSMEs, with 26?ing the median growth rate of revenue. Amazon in a statement said, “Small sellers on its platform had 35% higher sales compared to last year in the first two days of its season sale”.

MSMEs are willing to spend 40–50% more on marketing than the previous year in order to generate high sales figures.

Both Meesho and Amazon observed the fact that about 80% of their customers are from non-metropolitan region during the initial two days of sale.

When businesses were asked about the benefits of selling online, it was highlighted that businesses are focusing on electronic means to relish the benefits like increased sales from target marketing, deeper customer understanding, higher visibility, and larger addressable market than optimising functional cost by lowering procurement cost and physical store cost.

The seller’s margin is expected to rise as customers demand in product categories such as mobiles, appliances, lifestyle, beauty and general merchandise (BGM), electronics, and home décor, which generally have high ticket size and low carrying cost.

Effective logistics and management can ensure MSME’s festive season success.