Shiprocket unveils comprehensive trend report on How Bharat’s MSMEs Are Marketing Online to Unlock India’s $300 Billion eCommerce Market at Shiprocket SHIVIR 2024

• The potential for eCommerce extends beyond major urban centers, with non-metros contributing to 71% of all orders.

• The Trends report reveals a growing trust in digital payments, with UPI popular for smaller applications and 42% of consumers preferring prepaid methods.

• Retailers see a preference for weekend shopping among consumers, with 84% of orders placed during this period

• The report reveals that WhatsApp usage among Longtail marketers has increased from 35% initially to 40% currently, and among SMBs from 25% to 30%

• Women-led MSMEs, which account for 20.5% of registered enterprises, are key contributors, generating 19% of employment.

Shiprocket, India’s leading eCommerce enablement platform, launched a detailed trends report titled “How Bharat’s MSMEs are selling online” today at its flagship event Shiprocket SHIVIR 2024 held in New Delhi.

Launched by Shiprocket’s MD and CEO, Saahil Goel, the report is in line with Shiprocket’s mission to empower MSMEs with the knowledge and tools they need to navigate and thrive in the rapidly evolving eCommerce market, ultimately contribute to a strong and dynamic digital economy. India. The report aims to shed light on the key factors driving the eCommerce revolution in Bharat by analyzing available data trends on consumer behavior, technological growth, the global eCommerce market, and government initiatives.

The Rise of eCommerce in Bharat: Retailers account for more than 71% of orders from non-metros.

The growth of eCommerce in Bharat is fueled by the country’s digital transformation – internet penetration, smartphone usage, and digital payment systems. Major cities like Delhi, Bangalore, and Mumbai are prominent hubs for retailers, with Delhi alone accounting for 6% of total orders by 2023. While the contribution of retailers in urban areas is driving eCommerce, majority of orders- about 71% , are from non-metro areas. This highlights the huge potential for eCommerce growth beyond metropolitan areas.

Changing Customer Preferences: MSMEs receive the bulk of orders–84% on weekends

In terms of consumer preferences, MSMEs are witnessing an increasing demand for products in the Personal Care category, representing 27% of orders in Q1 2024, while Apparel & Footwear and Electronics follow with 20% and 9% respectively . MSMEs saw a preference for weekend shopping among consumers, with 84% of orders placed during this period, and a greater reliance on digital payments, as evidenced by 42% of consumers preferring these methods prepaid. MSMEs have seen an increase in orders from Maharashtra (15%), Karnataka (10%) and Uttar Pradesh (9%) and different purchasing patterns, with 53% of consumers being marked as discount seekers. and 84% of customers are leads. quality over price. Retailers have noted that 68% of orders placed in 2023 are discounted, and sales peak between 12 PM and 6 PM. These insights highlight the importance of tailored marketing strategies and the potential for further growth in the eCommerce sector.

Increase in Adoption of Technology Solutions: MSMEs Adopt WhatsApp for Direct Marketing, Adoption Increases from 25% to 30%

As MSMEs continue to ride the eCommerce wave, they continue to adopt advanced technology solutions to stay ahead. Marketing tools are being integrated to optimize campaigns, personalize customer interactions, and enhance marketing effectiveness. Social media marketing, especially through platforms like WhatsApp, has seen huge acceptance among MSMEs in Bharat. Data shows that the use of WhatsApp among Longtail marketers has increased from 35% at the beginning to 40% now, and among SMBs from 25% to 30%, highlighting the shift towards direct and immediate communication channels. Additionally, data analytics tools help MSMEs gain valuable insights into customer behavior, improve product offerings, and make smarter business decisions. By analyzing sales data, tracking customer preferences, and identifying trends, these tools empower businesses to improve their overall strategic planning.

MSMEs and the $300 Billion Future: The Evolution of Bharat’s eCommerce

Looking to the future of India’s $300 billion eCommerce market, the report highlights the critical need for inclusive growth. Women-led MSMEs, which account for 20.5% of all registered businesses, are key contributors to the growing market, generating 19% of jobs. Enduring Concerns are changing consumer preferences and MSMEs are adapting to these changes by continuing to adopt environmentally friendly practices and materials, such as sustainable packaging and electric vehicles. MSMEs are witnessing a growing demand for ethically sourced products such as vegan beauty products, wellness products and pet care products.

“At Shiprocket, we see firsthand how MSMEs, the powerhouses of India’s eCommerce landscape, are driving the market to its inevitable future of $300 billion. This growth is not limited to the cities but has a major impact on Bharat, highlighting the heart and stability of our country. Our latest report, ‘How Bharat’s MSMEs are selling online,’ launched at Shiprocket SHIVIR 2024, aims to empower these businesses. and more. It provides key insights to drive the evolving eCommerce space, fostering inclusive growth and strengthening our commitment as their trusted partner to success,” said Saahil Goel, MD & CEO, Shiprocket.

To allow MSMEs with more accessible information about the eCommerce ecosystem, as well as trend reporting, Shiprocket has also launched a dedicated trends section on their website where merchants can collect shopping trends. real time and analytics to know how India is buying. Through SHIVIR, Shiprocket aims to bring together MSMEs, emerging MSMEs, and established eCommerce brands under one roof and enable knowledge sharing and networking, paving the way for the next wave of growth for Indian MSMEs.

About Shiprocket

Shiprocket is India’s largest eCommerce enablement platform with the aim of empowering Bharat businesses to grow their businesses by unleashing the true power of eCommerce. The platform helps merchants at every step of their eCommerce journey, creating an efficient system for direct commerce. Their technology integration enables logistics, fulfillment, customer communication and marketing tools as well as SME suppliers, D2C sellers and social enterprise sellers in India.