 "E-com opportunity worth $13 bn for MSMEs during festive season: Shiprocket")
The Indian e-commerce opportunity is estimated to be worth $13 billion for Indian MSMEs (Micro, Small and Medium Enterprises) during the festive season, according to data from e-commerce enablement platform Shiprocket. The company said an impressive 56 per cent of its order volume comes from non-metro cities. This highlights the rapid adoption of online shopping and digital transactions in smaller towns and rural areas. In this vein, MSMEs from Tier-II, Tier-III and Tier-IV cities anticipate higher Diwali gift orders than sellers from metro cities.
With rising e-commerce activity, Shiprocket expects around 10 to 15 per cent of total order volume to come from first-time shoppers. Delhi NCR leads with a significant 28 per cent share of festive sales, closely followed by Mumbai at 13 per cent and Bengaluru at 7 per cent, according to festive sales data. With Delhi NCR being a thriving business hub that includes a high number of MSMEs, this economic activity is boosting consumer spending during the festive season.
In terms of categories, personal care products lead the way during the festive season. Shiprocket is also set to assist merchants in other key segments such as apparel, footwear, electronics, home decor, and books and e-books. The platform is seeing a surge in festive exports from India. Leading categories for global exports include artificial jewellery, beauty and grooming, clothing and accessories. Other categories are healthcare, books, automotive accessories, home furnishings and decor, and pet supplies. This demand is primarily driven by the USA, the UK, Germany, Australia, Canada, France and the UAE.
To accommodate the increased demands of the festive season, Shiprocket has significantly expanded its warehousing capacity. The company has doubled its warehousing space to a total of 2 million square feet and this expansion includes the addition of three state-of-the-art warehouses. Shiprocket has also increased its workforce at the warehouses by 50 per cent to ensure efficient order processing and fulfilment.
Shiprocket said it is helping Indian MSMEs take part in this festive surge by offering comprehensive e-commerce support across the country. In this endeavour, Shiprocket has enhanced its tech stack by introducing more offerings aimed at simplifying the online selling process for Indian merchants. These offerings will provide merchants with easy access to marketing automation and improved consumer engagement. They will also assist in efficient supply chain management and increased participation in conversational commerce.