Business owners can now focus their resources on establishing products and generating brand awareness online.
According to a leading e-commerce marketplace, the total goods sold during their festive sale would be enough to fill football fields, construct a thousand Burj Khalifas, and equal the weight of 15 blue whales.
E-commerce brands have successfully broken the conventional notion that for brands to be successful, respected, and gain customer loyalty, they need to have a physical presence. Structural innovations like online markeptlaces and e-commerce platforms are creating household brands which are exclusively selling online. E-Commerce is no longer an additional channel of sales, it’s the very definition of a number of businesses.
What is responsible for this tectonic shift?
COVID-19 Forcing a New Reality: For successful quarantine to be ensured and for the survival of the economy, the most effective thing to do was to transition online. The pandemic acted as the best catalyst for people to begin accepting and using online platforms for everything from essentials to luxury products. While young Indians were already transacting online, 35% more Indians above the age of 55 increased their online purchases. Once Indians became comfortable, it slowly became an accepted norm, prompting businesses to ensure that their digital brand was well established.
Success of online marketplaces: Platforms like Flipkart and Amazon have helped the e-commerce entrepreneur focus solely on manufacturing great products, while they take care of customer acquisition, fast shipping, packaging, and even customer support. From a ten-rupee packet of snacks to valuable jewelry, these marketplaces deliver a massive range of products to over 25,000 pincodes in India. This has even led to an increase in participation from brands in T2 and T3 cities, and their mega success in festive sales is a leading indicator of the Indian public’s affinity for them.
Government Backing: According to the Indian e-commerce Industry report, the e-commerce market is expected to grow to US$ 111.40 billion by 2025 from US$ 46.2 billion as of 2020. Much of this growth has been the result of aggressive government backing. With schemes like ‘Digital India’ and ‘Make in India’, entrepreneurs have the ideal environment to grow their business online.
Implementation of Cutting-edge Tech: From AI-enabled chatbots that provide 24×7 customer support, data science & machine learning algorithms that help predict consumer behaviour, AR & VR platforms for providing at-home retail experiences, to the numerous digital marketing tools that are used daily – tech has augmented how customers experience e-commerce and how sellers leverage it.
The new wave of roll-up e-commerce in India: Finally, roll-up e-commerce companies are identifying credible e-commerce brands and actively aiding them in scalability. Such companies acquire e-commerce brands and grow them by infusing capital and relevant expertise for every aspect of the business. For example, India’s UpScalio acquires profitable online-first companies. This provides an incredible incentive for e-commerce entrepreneurs to grow their companies and aim for a highly liquid exit. Post-exit, their brand continues to grow with the platform’s experienced team of operators.
Business owners can now focus their resources on establishing products and generating brand awareness online. The online space allows businesses to cater to customers worldwide whose demands can be met by a reliable logistics solutions and delivery company. This form of business growth creates a global ecosystem and produces an overall positive impact on the economy. This is perhaps one of the primary reasons why e-commerce growth has shown no signs of slowing down
Source: Business World