Internet provides a level playing field for all entrepreneurs. More and more small traders are banking on this aspect by entering the ecommerce market by selling their products through online marketplaces. Entry regulations and rules are much lower in ecommerce thus making it easier for newcomers and small traders to reach a wider customer base at much lower costs
Reports show that 32% of sellers on eBay India are newcomers.
Rural and remote areas of India have lesser competition due to a dearth in suppliers. Small traders capitalize on the demand from such areas. Also, in comparison to prices of bigger and established brands, small traders can provide better rates to customers, thus increasing sales and achieving brand loyalty.
Small traders with quality products, who could earlier not compete with established brands due to lack of capital, can trade through the internet thus leading to boost in sales as well as expansion of their operations and customer base. If all international trade were to become internet-enabled, both sellers and consumers would benefit from the resulting welfare gains.
Reports show that welfare gains for India from cross-border ecommerce is at an estimated 67%, third highest amongst the leading countries of the world.
Currently, internet-enabled trade and cross border transactions are not at its full potential in India, mainly due to the restrictions and regulations pertaining to the same. There is the urgent need to relax these to enable more small and medium traders to flourish and add to the ecommerce market of India.
After dwindling with her family business, into travel and hospitality, for more than 3 years, Pooja Vishant found her true love in writing. Happy-go-lucky and cheerful, she loves pink; so pink is the way to go if you want to get into her good books. The Associate Editor keeps track of even a leaf that has moved in the ecommerce world!
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