It’s time for MSMEs to Board the eCommerce Ship

Objective is to architect the offline sales model into the online eCommerce World

The Indian eCommerce is valued at US $17 billion and it is likely to grow annually at 35%CAGR, as per the study conducted by Assocham along with PwC. This eCom business is on the watch list of every MSME industrialist. Presently there are two types of eCom business models: business to consumer (B2C) and business to business (B2B). B2C eCom is designed to meet the needs of an end buyer. While B2B eCom only establishes an inert connect between the product owner & the product seeker.

There’s a strong perception that the offline sales model, which depends on physical stores, local warehouses and sales team are entirely different than the online sales model, which depends only on the virtual web. This created the need for the large sized companies to build an entire new online sales distribution network. However, the MSME industry which depends on their offline sales model, with their strong distribution channel has refrained themselves from building a new online distribution network. Thus, the non participation of the existing market players has lead to a vacuum in the online space, leading to mushroom growth of new competitors.

Some of the areas for the actual product owners to refrain from eCom business are the inability to directly manage the small quantity of online orders; at the risk of disturbing the existing dealer-distributor network. At the same time, there are many buyers who would trust to establish direct connect with the product owner’s sales channel in lieu of purchasing from some random reseller.

This is leading to the creation of a B2B2C sales model that will add thrust to the offline sales channel by the combined power mobile and internet. Whereby, the entire sales network goes on to the internet cloud based eCommerce platform and; the offline & online sales gets completely coupled.

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2017-11-09T10:34:53+00:00 MSME, Sales|0 Comments
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