64% of MSMEs and startups saw their online sales increase in the past year: survey
Digital adoption by small businesses has accelerated since the Covid-19 outbreak, with up to 64% of micro-small and medium-sized enterprises (MSMEs) sales through online channels growing over the years. Last 12 months, according to a survey conducted by LocalCircles
Of this number, 28% of MSMEs saw their sales increase by 100-500%.
Sachin Taparia, founder and president of community social media platform LocalCircles, said that for small businesses, the key to survival during the pandemic has been their ability to go digital. have listed their products on e-commerce platforms or have done both.
“The first question in the survey asked startups and MSMEs how their total sales through digital or e-commerce channels have changed over the past 12 months compared to the previous year. In response, 28 percent of startups and MSMEs said their total digital sales as a percentage of total sales “increased 100 to 500 percent,” 23 percent said they “increased 50 to 100 percent. cent ”, and 13 percent. one hundred said “increased from 0 to 50 percent,” depending on the results.
“Breaking down the survey, 18% said their total sales remained the same as the previous year. Only 18% said their sales through digital or e-commerce channels as a percentage of total sales had declined, ”he said.
The survey received over 17,000 responses from over 6,200 startups and MSMEs located in 172 districts.
He further said that digital and e-commerce channels have helped small businesses during the pandemic find new customers, increase transactions with existing customers, and stay in touch with them during the pandemic. Over the past year, many MSMEs have improved their technology through measures such as scaling their back-end systems, among others.
According to the other findings, 61% of small businesses that sell products and services online do so through e-commerce platforms, while 31% sell through their own website or app. On the other hand, 56% of MSMEs and startups said they started or increased their listings on marketplaces and aggregator websites to grow their business.
“All of these are indicators that the Covid-19 pandemic has played a major role in the digitization of many Indian MSMEs and startups and the time has come for them to step up their digital presence in the months and year to come. “, indicates the survey. .
As part of the amendment of consumer protection rules (e-commerce), 57% of MSMEs and startups are concerned about the requirements for the appointment of a grievance manager, country of origin among others. Many small businesses have suggested that companies with an annual turnover of less than 5 crore be exempted from such compliance requirements such as appointing a grievance officer and that more efficient ways be found to display the information. on products, he said.
The results of the survey will be shared with key government stakeholders, according to an official statement.