The India SME Forum (ISF) report sheds light on the unwavering dominance of established e-commerce platforms like Amazon and Flipkart within the Micro, Small, and Medium Enterprises (MSMEs) sector. The study conducted by the Forum for Internet Retailers, Sellers, and Traders (FIRST) India, a division of ISF, offered year-end insights into the impact of e-commerce during the festive season of 2023.
Based on data collected from over 32,000 respondents across the nation, the report underscored a significant surge in online retail activities. Approximately 80% of the sellers revealed that their revenues were derived from online and e-commerce sales. Among them, 60% experienced a twofold increase in their sales figures, while an astounding 90% reported a minimum 30% year-on-year rise in online sales.
Vinod Kumar, President of the India SME Forum and Trustee and President of FIRST India expressed optimism about the growth potential. He stated, “Anticipating a surge from the current estimated Rs 90,000 crore to over Rs 1,00,000 crore in 2024, we aim to guide these enterprises towards a prosperous future by integrating traditional offline avenues with the digital realm.”
Kumar’s remarks reflect the Forum’s dedication to navigating businesses toward expansion by bridging the gap between conventional offline methods and the digital landscape.
The revelations within the report indicate a robust trajectory for the online retail sector, projecting a substantial leap to $350 billion within the forthcoming five years. This anticipated growth is attributed to escalating smartphone usage, a rapid surge in digital adoption rates, and government initiatives such as Digital India and One District-One Product. These collective efforts have significantly propelled the expansion of e-commerce platforms.
The ISF report emphasizes the continued reliance of MSMEs on established e-commerce platforms like Amazon and Flipkart while highlighting the pivotal role of digital integration in driving growth. As India’s e-commerce landscape continues to evolve, these insights guide businesses toward an increasingly prosperous online future.
