SMEs believe e-commerce is a cost effective method to improve sales
Updated: Oct 07, 2015 04:56:07pm
New Delhi, Oct 7 (KNN) Online marketplace, Snapdeal and KPMG have released a study that said that small and medium enterprises that adopt e-commerce techniques can benefit from the cost effective method to improve sales.
Released on Tuesday, the study titled ‘Impact of Ecommerce on SMEs in India' examines the macro-impact of e-Commerce sector on growth of SMEs in India and identifies remaining gaps in the eco system needed to be plugged to facilitate adoption of e-commerce by SMEs.
This report is the first in a series of initiatives that Snapdeal has undertaken for creating an ecosystem for MSMEs and leveraging e-commerce for their growth, media reports said.
The study showed that 85 per cent of the SMEs who adopted e-commerce believe that it is a cost effective medium to grow sales. Further, SMEs using internet for business saw 51 per cent higher revenues and 49 per cent more profit.
In addition as many as 73 per cent of the SMEs felt that e-commerce enables them to understand their markets better; while 46 per cent of them reported increase in business through listings on online marketplaces.
As far as marketing spend is concerned, e-commerce enabled SMEs reported 60 per cent to 80 per cent reduction in distribution, marketing and sales spend to get incremental business.
Commenting on the study, Co-founder and CEO, Snapdeal, Kunal Bahl said, "With over 200,000 sellers operating on our platform, we felt the need to conduct a systematic unbiased study to identify opportunities and challenges to further accelerate the growth of the sector. We have taken a number of initiatives like seller training programs, seller financing program- Capital Assist and Snapdeal Seller Advisor Program, with an aim of creating life changing experiences for over one million sellers in the next three years."
This study has given the company deeper insights into what more it can do to enable small businesses become more successful online, he added.
On the other hand, CEO, KPMG India, Richard Rekhy said, "The fast paced growth of the e-commerce industry in India represents an unprecedented opportunity for SMEs. We hope that the findings of this report will assist policymakers, industry bodies and e-commerce companies to strengthen the support ecosystem, which enables SMEs to ride the e-commerce growth wave successfully." (KNN Bureau)
Released on Tuesday, the study titled ‘Impact of Ecommerce on SMEs in India' examines the macro-impact of e-Commerce sector on growth of SMEs in India and identifies remaining gaps in the eco system needed to be plugged to facilitate adoption of e-commerce by SMEs.
This report is the first in a series of initiatives that Snapdeal has undertaken for creating an ecosystem for MSMEs and leveraging e-commerce for their growth, media reports said.
The study showed that 85 per cent of the SMEs who adopted e-commerce believe that it is a cost effective medium to grow sales. Further, SMEs using internet for business saw 51 per cent higher revenues and 49 per cent more profit.
In addition as many as 73 per cent of the SMEs felt that e-commerce enables them to understand their markets better; while 46 per cent of them reported increase in business through listings on online marketplaces.
As far as marketing spend is concerned, e-commerce enabled SMEs reported 60 per cent to 80 per cent reduction in distribution, marketing and sales spend to get incremental business.
Commenting on the study, Co-founder and CEO, Snapdeal, Kunal Bahl said, "With over 200,000 sellers operating on our platform, we felt the need to conduct a systematic unbiased study to identify opportunities and challenges to further accelerate the growth of the sector. We have taken a number of initiatives like seller training programs, seller financing program- Capital Assist and Snapdeal Seller Advisor Program, with an aim of creating life changing experiences for over one million sellers in the next three years."
This study has given the company deeper insights into what more it can do to enable small businesses become more successful online, he added.
On the other hand, CEO, KPMG India, Richard Rekhy said, "The fast paced growth of the e-commerce industry in India represents an unprecedented opportunity for SMEs. We hope that the findings of this report will assist policymakers, industry bodies and e-commerce companies to strengthen the support ecosystem, which enables SMEs to ride the e-commerce growth wave successfully." (KNN Bureau)
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