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India’s business climate has undergone a paradigm shift from the traditional to the digital during the last few years, partly due to government initiatives and deep internet penetration. In addition, the providential pandemic has aided the phenomenal eCommerce surge to reach stratospheric heights. And the gainers have been the Indian Micro, Small, and Medium Enterprises (MSME), always considered the key drivers in the country’s socio-economic development. The eCommerce boom has fetched the MSME sector dividends and is expected to continue unabated. So, let us study the impacting factors.
MSME’s Significance in the Indian Economy
Today, the Indian MSME sector is 2.5 million strong units, up 18.5% from 2020. The MSME sector’s domestic and international trade contributes 29% towards the Indian GDP. Not surprisingly, the government has doubled its budgetary support to Rs.15700 Cr for 2022 from the previous year. The icing on the cake is the “Digital India” like campaigns adding muscle to the MSMEs, prompting them to ride the eCommerce bandwagon. Catering to the surging online base has been a game-changer accruing several benefits.
eCommerce Benefits for MSME
The government initiatives and technology advancements have significantly contributed to the nation’s digital advancement and eCommerce growth. Moreover, the dramatic rise in internet users and digital trading practices alongside online payment gateway helped eCommerce succeed.
As a result, the dominating digital business model has percolated to other aspects like academics, healthcare, banking, and the government, to name a few.
Furthermore, Indian companies launched many initiatives to help MSMEs overcome the pandemic-induced downturn and continue the eCommerce boom. For example, an online payment gateway from Zaakpay was instrumental in ensuring crucial contactless checkout, earning customer loyalty to the eCommerce platform.
Let us thus fathom how the eCommerce revolution has benefited Indian MSMEs.
You can reach a larger audience with an increased business reach. In turn, it boosts your revenues significantly to focus on a better product line and marketing to ensure sustained growth.
Reduced Operational Cost:
Online stores score over brick-and-mortar enterprises with a technology-driven functional Ecommerce payment gateway like Zaakpay, significantly reducing your cost of operations. Thus, you can expand with an assured lower overhead.
Build Online Reputation:
A seamless shopping experience in the eCommerce platform generates positive reviews in cyberspace to attract new audiences. In turn, it guarantees customer loyalty by building trust with exemplary service quality. So, you can make optimum use of social media platforms to propagate a positive outlook.
An MSME on the eCommerce platform operates round-the-clock, cornering sales unhindered by time constraints. So you can service your orders and garner fresh ones 24/7, directly impacting your order inventory.
You can leverage the potential of eCommerce fully through merchant services. While the online payment gateway like Zaakpay is crucial for a quick and seamless checkout experience, the data generated during the transaction are handy for analytics. The entire gamut of the business operations is digitally available to devise suitable strategies to expand and grow.
Search Engine Presence:
Google search for a product to buy or a service to solicit is a routine option in the digital environment we live. The eCommerce platform is automatically on the digital highway for audiences to explore. Therefore, an SEO-friendly website ensures steady search engine traffic, ensuring high conversion rates to boost sales.
For an MSME, the eCommerce platform is the passport to a global audience without the accompanying spending. You can showcase your products beyond geographical boundaries to reach international destinations. All MSMEs can ride the trend for a more extensive customer base and matching revenues, whether big or small.
Indian MSMEs have grasped the power of eCommerce, tapping into the immense potential of the internet. Thus, they adopted eCommerce channels to create a niche business domain fully geared to grow in leaps and bounds. As a result, on top of their significant share in the India GDP, eCommerce MSMEs have a broader reach to generate additional opportunities while doing wonders for the business environment.