64% of MSMEs have seen their online sales increase in the past 12 months: survey
As the pandemic continues to accelerate the adoption of technology, nearly 64% of startups and micro, small and medium enterprises (MSMEs) have seen their sales increase through digital or e-commerce channels in the past 12 years. months, according to a community survey. run social media platform, LocalCircles.
In the survey, 28% of startups and MSMEs said their digital sales had doubled or quintupled in the past year, while 23% said their sales through digital channels had increased by 50% 100%.
Only 13% said sales through digital channels increased by up to 50%, while 18% of those surveyed reported no change.
“Digital or e-commerce channels have become mainstream for Indian MSMEs and startups to sell their products or services to consumers, with 64% of small businesses reporting that their sales through digital channels as a percentage of their total sales have increased over the past 12 months. “said LocalCircles.
According to the survey, almost 26% of MSMEs reported increasing the listings of their products and services on e-commerce platforms or aggregator websites. MSMEs and small startups participating in the survey also said they upgraded their website or app, allowing customers to pay digitally.
In response to the recently proposed consumer protection (e-commerce) rule change, 2020, several companies have raised concerns about the appointment of a resident grievance officer, restrictions on sale events and the setting up of a resident grievance officer. up-to-date product information. Almost 25% of MSMEs participating in the survey considered all three factors to be major concerns for doing business online. While the others have recognized at least one of the issues mentioned above as a concern for online sales.
In total, 24% of MSMEs only said they had no concerns or had no opinion on the government’s proposed changes to e-commerce rules.
“If concerns raised by MSMEs and startups about the new consumer protection (e-commerce) rules, 2020 are prioritized, this suggests that 57% of small businesses are struggling to update information on products like country of origin, MRP, expiration date / time, etc., on a regular basis. In addition, 57% raised the issue of appointing a complaints manager and prompt handling of complaints, and 44% raised the issue of restrictions on sales events, ”LocalCircles said in its survey.
The changes proposed by the Consumer Department came as a surprise to the e-commerce industry, with businesses and stakeholders wanting major changes in the draft policy. In some cases, industry organizations have also suggested that the government remove these rules and hold further consultations with the industry.
The survey conducted on the LocalCircles platform received more than 17,000 responses from more than 6,200 startups and MSMEs in 172 districts in India, the company said.
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