Mumbai: The potential of eCommerce lies beyond major urban centres, with non-metros contributing to 71% of total orders. Shiprocket, an eCommerce enablement platform, launched a detailed trends report titled ‘How MSMEs of Bharat sell online; today at its flagship event Shiprocket SHIVIR 2024 held in New Delhi.
– The Trends report also reveals a growing trust in digital payments, with UPI’s popularity for smaller transactions and 42% of buyers preferring prepaid methods
– Sellers witness a preference for weekend shopping in buyers, with 84% of orders placed during this time
– The report reveals that WhatsApp usage among Longtail sellers increased from 35% at inception to 40% currently, and among SMBs from 25% to 30%
– Women-led MSMEs, making up 20.5% of registered businesses, are pivotal contributors, generating 19% of employment
The report launched by Shiprocket’s MD, CEO, Saahil Goel, is in line with Shiprocket’s mission of supporting MSMEs with the knowledge and tools they need to navigate and succeed in the rapidly evolving eCommerce market, ultimately contributing to a more vibrant and dynamic digital economy in India. The report aims at decoding insights into the factors driving the eCommerce revolution in Bharat by examining existing data trends in consumer behaviour, technological evolution, global eCommerce market, and government initiatives.
The Rise of eCommerce in Bharat: Sellers observe over 71% of orders originating from non-metros
The rise of eCommerce in Bharat is fueled by the country’s digital revolution– increased internet penetration, smartphone usage, and digital payment systems. Major cities like Delhi, Bangalore, and Mumbai are prominent hubs for sellers, with Delhi alone accounting for around 6% of the total orders in 2023. While the seller contribution in urban hubs is driving eCommerce activity, the majority of orders– around 71%, originate from non-metro areas. This underscores the vast potential for eCommerce growth beyond major urban centres.
Evolving Consumer Preferences: MSMEs receive majority of orders–84% on weekends
In terms of consumer preferences, MSMEs witness a rising demand for products in the Personal Care category, representing 27% of orders in Q1 2024, with Apparel and Footwear and Electronics following at 20% and 9%, respectively. MSMEs witnessed a preference for weekend shopping in buyers, with 84% of orders placed during this time, and a significant trust in digital payments, as evidenced by 42% of buyers preferring prepaid methods. MSMEs have witnessed a surge in orders coming from Maharashtra (15%), Karnataka (10%) and Uttar Pradesh (9%) and a variety of shopping habits, with 53% of buyers identified as discount value seekers and 84% of buyers prioritising quality over price. Sellers have observed 68% of orders placed in 2023 being discounted, and shopping peaks between 12 PM and 6 PM. These insights emphasise the importance of tailored marketing strategies and the potential for further growth in the eCommerce sector.
Increasing Adoption of Technology Solutions: MSMEs Embrace WhatsApp for Direct Marketing, Adoption Rises from 25% to 30%
As MSMEs continue to ride the eCommerce wave, they are increasingly adopting advanced technology solutions to stay ahead. Marketing automation tools are being integrated to optimise campaigns, personalise customer interactions, and boost marketing efficiency. Social media marketing, particularly through platforms like WhatsApp, has seen significant adoption among MSMEs of Bharat. Data shows that WhatsApp usage among Longtail sellers increased from 35% at inception to 40% currently, and among SMBs from 25% to 30%, highlighting the shift towards direct and instant communication channels. Moreover, data analytics tools are helping MSMEs gain valuable insights into customer behaviour, optimise product offerings, and make informed business decisions. By analysing sales data, tracking customer preferences, and identifying trends, these tools are empowering businesses to improve their overall strategic planning.
MSMEs and the $300 Billion Future: The Evolution of Bharat’s eCommerce
Looking ahead to the $300 billion future of the Indian eCommerce market, the report emphasises on the critical need for inclusive growth. Women-led MSMEs, comprising 20.5% of all registered businesses, are pivotal contributors to the growing market, generating 19% of employment. Sustainability concerns are reshaping consumer preferences and MSMEs are adapting to these changes by increasingly adopting eco-friendly practices in logistics, such as sustainable packaging and electric vehicles. MSMEs are witnessing a rising demand for ethically sourced products like vegan beauty products, organic wellness items, and sustainable pet care products.
“At Shiprocket, we’re witnessing firsthand how MSMEs, the powerhouses of India’s eCommerce landscape, are propelling the market towards its inevitable $300 billion future. This growth isn’t just confined to urban centres but resonates deeply across Bharat, highlighting the heart and resilience of our nation. Our latest report, ‘How MSMEs of Bharat sell online,’ launched at Shiprocket SHIVIR 2024, aims to empower these businesses even further. It provides invaluable insights to navigate the evolving eCommerce terrain, fostering inclusive growth and reinforcing our commitment as their trusted partner in achieving success,” said Goel.
To allow MSMEs with more accessible insights on the eCommerce ecosystem, along with the trends report, Shiprocket also launched a dedicated trends section on their website where sellers can gather real-time shopping trends and analytics to know how India is shopping. With Shivir, Shiprocket aims to bring together MSMEs, emerging startups, and established eCommerce brands under one roof and enable knowledge-sharing and networking, paving the way for the next wave of growth for Indian MSMEs.
