The India Council for Research on International Economic Relations (ICRIER) said micro, small, and medium enterprises (MSMEs) integrated with e-commerce platforms report higher turnovers and profitability than the non-integrated ones, and around 69% of the surveyed MSMEs used digital wallets and mobile payments as their most frequently used payment mode for doing business.
In its annual survey on MSMES, it said over 85% of surveyed enterprises reported an increase in sales and profit margins after integrating with ecommerce channels, with most reporting growth of up to 30%. Around 14% of integrated firms reported hiring new employees, it said. “It is important to highlight the fact that at present, the volume of sales made through e-commerce platforms account for a relatively smaller share of the firms’ total sales compared to those made through traditional routes. And therefore, there is significant scope for MSMEs to increase share of online sales in total sales,” ICRIER said.
A majority of MSMEs surveyed cited the inability to access markets, retain customers, and effectively market their products are among the top challenges, according to the report.
The think tank surveyed 2,007 MSMEs between November 4, 2022, and January 20, 2023. MSMEs were selected across six product categories — sports goods (16.7%), toys (15.7%), processed and preserved food products (16.9%), apparel (17%), furniture (17.6%), and handicrafts (16.1%).
Source: The Economic Times