E-commerce opportunity worth US$ 13 billion for MSMEs during festive season: Shiprocket
According to data from e-commerce enablement platform Shiprocket, the Indian e-commerce opportunity over the festive season is estimated to be around US$ 13 billion for Indian Micro, Small and Medium Enterprises (MSMEs).
According to the company, non-metro cities account for 56% of its order volume. This demonstrates the widespread acceptance of Internet shopping and digital transactions in small towns and rural places. In this line, MSMEs in Tier II, Tier III, and Tier IV cities expect more Diwali gift orders than merchants in metro cities.
With increased e-commerce activity, Shiprocket anticipates that first-time buyers will account for 10-15% of overall order volume. According to festive sales data, Delhi NCR leads with a large 28% share of festive sales, followed by Mumbai at 13% and Bengaluru at 7%.
With Delhi NCR being a vibrant business region with a high number of MSMEs, this economic activity is driving up consumer spending throughout the holiday season. Personal care products are the most popular category during the holiday season. Shiprocket is also planning to help merchants in other key segments such as apparel, footwear, electronics, home decor, and books and e-books.
The platform is experiencing an increase in festive exports from India. Artificial jewellery, cosmetics and grooming, clothes and accessories are among the top global export categories. Other categories include healthcare, books, vehicle accessories, home furnishings & decor, and pet products. This demand is mostly driven by the United States, the United Kingdom, Germany, Australia, Canada, France, and the United Arab Emirates.
Shiprocket has greatly boosted its warehouse capacity to meet the increased needs of the holiday season. The company has doubled its warehousing space to a total of 2 million square feet, with the addition of three cutting-edge warehouses. Shiprocket has also boosted its warehouse employees by 50% to ensure efficient order processing and fulfilment. Shiprocket claimed that by providing thorough e-commerce support throughout the nation, it is assisting Indian MSMEs to participate in this holiday surge.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.