The proper intervention on behalf of the Indian authorities will likely be instrumental in selling e-commerce amongst small and medium enterprises within the nation, mentioned Dr Avik Sarkar, Professor, Indian College of Enterprise (ISB) and former Head of Knowledge Analytics Cell, Niti Aayog, in an interplay on Tuesday. Sarkar mentioned this within the context of the findings of a report on e-commerce launched by the ISB within the first week of September.
In a Twitter Area dialogue hosted by The Plunge Day by day, Sarkar mentioned there are various advantages for sellers in the event that they resolve to go surfing. “If you expand into these digital streams, you can expand your business beyond your physical means. You will start seeing the multiplication effect in your city or neighbourhood and even beyond your own places,” mentioned Sarkar. “The e-commerce platforms like Amazon, Flipkart, Snapdeal have already been onboarding sellers, but that is happening in very small numbers. I think government intervention will be very helpful to promote e-commerce.”
The session, anchored by Ashutosh Bhattacharya, was attended by Vinod Kumar, President of the Indian SME Discussion board (ISF). Kumar informed the listeners that India was well beyond the stage when money was the dominant technique of buying. “The current time is no longer when anybody can have a business on cash and grow big at the same time. It’s not possible anymore. We are past those times when we used to look at large businesses running primarily on cash,” mentioned Kumar. “The sellers need to understand that if they have to grow their business beyond the borders and present limits, they need to go online,” Kumar added.
The session was additionally attended by Mr Sanjay Kataria, a third-generation entrepreneur and co-owner of Sindhi Dry Fruits, a New Delhi-based enterprise. Kataria mentioned that e-commerce helped them drastically to increase their presence to new areas and clients. “I have achieved about 25 per cent growth in sales. This increase has been possible only via operating online. If you have your own established brand and good presence in your local area, e-commerce helps you grow,” mentioned Kataria, who credited digitization with serving to them faucet into the markets which had been earlier not doable for them. “Earlier, people would not trust us because any customer in Tamil Nadu or Kerala would prefer trusting a platform like Amazon when it comes to entering their credit card details online,” he added.
Throwing mild on the e-commerce report launched by the Indian College of Enterprise (ISB), the place he’s a college member, Sarkar mentioned despite the fact that the Indian authorities had provide you with a draft e-commerce coverage in 2017-2018, it was finalized solely just lately as they wanted to think about a number of views when developing with coverage suggestions. “For this report, we held consultations with sellers, platform owners, small platforms, large platform owners, academia and think tanks. This was a very consultative approach, in which we organized about four roundtables attended by 30 to 35 people from different fields,” Sarkar knowledgeable.
A knowledge scientist who has labored with a number of multinational corporations, Sarkar mentioned they took under consideration 4 main components when developing with the ISB’s e-commerce report – FDI, enterprise elements, taxation, knowledge and analysis. “The moment you come and sell things on e-commerce platforms, you are doing things in white because your transactions are being tracked on some platform. You are liable to pay more taxes even if you are doing a small amount of business,” mentioned Sarkar. “Then there are aspects about the business models. How can it go to the interiors? How can it be sold in foreign countries? And if there are opportunities, what are the barriers for many other small sellers to sell abroad? In the aspect of data and research, we looked at your product launch and search rankings,” he added.
Kumar, studying from his tenure because the President of ISF, mentioned he nonetheless felt that small offline retailers will not be taking full benefit of the digital economic system that’s driving huge development within the ecosystem. “These sellers need to figure out a model that answers many questions. How can we be competitive? How can we reach out? How can we offer our best customer service? How can we create a sizeable sustainable business across platforms?” mentioned Kumar. “Just because the seller is online, he can see exactly what he is doing, their growth path and where he will be later,” he added.