News

How E-Commerce is Changing the Scenario of the SME Sector?

Do you know that according to a Goldman Sachs report, the e-commerce sector in India is all set to cross USD 300 billion by 2030? Also, it is already altering the way small and medium businesses are working in India.

The SME sector greatly benefits from e-commerce as the latter increases the accessibility of the business and market reach while enhancing the customer experience. The government has also launched various initiatives like Digital India, Skill India, and Make in India to empower and support the growth of small and medium enterprises in the e-commerce sector.

Moreover, the government is providing MSME Loan with a subsidy to these enterprises to encourage their development. So, there are multiple ways in which e-commerce is changing the scenario of the SME sector. Some of them are mentioned below.

Increment in revenue

Online platforms provide MSMEs with the opportunity to access customers across all geographies. If a small business doesn’t use these platforms, it takes years to build a good brand. However, this increased access enables a business to increase sales which in turn improves its revenue.

READ ALSO:   BRAZIL 2014: Daddy Lumba to entertain fans in Brazil

With the personalisation tools and insights offered by e-commerce platforms, a business can improve itself in speed, delivery, customer acquisition, and consumer support system which boosts the sales volume even further resulting in even greater revenues.

Reduced marketing and sales expenditure

As the e-commerce sector is expanding, e-commerce players are spending more on digital marketing and customer acquisition to make their platform a better place for registered businesses, and  achieve higher profit margins. Their marketing strategies aim to build good relationships with customers, increase site traffic, and eventually sales.

Now, small businesses can reduce their marketing expenditure on offline advertising by being a part of these platforms. Also, it costs significantly less for them to participate in promotional campaigns. In case of financial help to scale their business, they can always resort to loans with great business loan interest rates. So, it works out in their favour.

Improved accessibility

As the virtual marketplace is growing day by day, it provides opportunities for small business owners to showcase their products and services globally. Also, the enterprises can reach remote locations which increases the consumer base.

READ ALSO:   Guinean President, Alpha Condé In Accra For Ghana's 57th Indece Anniversary

This enables SMEs to compete with the big players in the market on an international level – an opportunity that was unavailable before the rise of the e-commerce sector. It also contributes to the government’s Make in India initiative under which you can get a loan for your enterprise after you fulfil all the business loan eligibility criteria of the SMILE scheme.

So, you can see that the e-commerce sector is revolutionising the SME sector. You can also take advantage of this opportunity by jumping on the bandwagon and launching a small business either by investing your savings or taking a business loan according to your business plan. With the collaborative support to the SME sector from the government and the e-commerce segment, your business will flourish.