E-commerce Boosts MSMEs & Small Sellers: Report

New Delhi, Sep 9 (PTI) E-commerce has helped multiple sellers, mainly MSMEs, access wider customers across geographies and has emerged as one of the enablers of sustainable and inclusive development, according to a report.

Small businesses are finding new growth pathways through digital marketplaces such as Amazon that connect them directly with consumers nationwide, the report, Spotting India's PRIME Innovation Moment, by Deloitte, said.

FMCG, retail, and e-commerce are not only engines of growth but also enablers of sustainable and inclusive development, it highlighted.

With rural FMCG volumes rising at 8.4 per cent compared to 2.6 per cent in urban markets, and Tier-2 and Tier-3 cities now accounting for 60 per cent of online transactions, small businesses are finding new growth pathways through digital marketplaces that connect them directly with consumers nationwide, the report said.

Vinod Kumar, President of India SME Forum, said: "India's e-commerce ecosystem has become a vital growth engine for MSMEs, particularly during the festive season when demand peaks."

“Programs supporting local shops, women entrepreneurs, and innovative startups have empowered small businesses with national reach. Seasonal hiring has also created a strong economic multiplier effect, generating millions of jobs," Kumar said.

The evolution of shopping experiences - pioneered by e-commerce players like Amazon has expanded consumer access in previously underserved regions, Kumar said further.

The annual festive season, which includes events like the Great Indian Festival by Amazon, has become a critical period for these small businesses, according to Amandeep Budhiraja, Owner of JustToyz.

"The festive season is when we make a large part of our annual income. Digital
marketplaces have revolutionized our reach - we can now serve customers across India
through platforms that offer same-day and next-day delivery options," Amandeep said.