Why Is It The Right Time To Digitise Your SMB
18/08/2022
Before you know why you should opt for digitisation of Small and Medium businesses (SMBs), you should know what it is and its various benefits.
Ecommerce businesses are observing a continuously increasing trend in India. According to Ibef.org, India’s eCommerce market is expected to reach Rs. 8.6 lakh crores by 2024, Rs. 15.5 lakh crores by 2026, and Rs. 27.2 lakh crores by 2030.
A small business according to the Indian government is the one having an investment in machinery or equipment of not more than Rs 10 crore and has an annual turnover of not more than Rs 50 crore. Similarly, a medium business has investments in machinery or equipment of not more than Rs 50 crore and has an annual turnover that does not exceed Rs 250 crore.
These small and medium businesses are the backbone of the Indian economy and employ over 130 million people currently. This sector contributes 6.11% to India's manufacturing GDP, 24.63% of the GDP from service activities, and 33.4% of manufacturing output.
The businesses opt for digital infrastructure for easy discovery, more engagement with customers and further business growth.
Ecommerce businesses are observing a continuously increasing trend in India. According to Ibef.org, India’s eCommerce market is expected to reach Rs. 8.6 lakh crores by 2024, Rs. 15.5 lakh crores by 2026, and Rs. 27.2 lakh crores by 2030.
A small business according to the Indian government is the one having an investment in machinery or equipment of not more than Rs 10 crore and has an annual turnover of not more than Rs 50 crore. Similarly, a medium business has investments in machinery or equipment of not more than Rs 50 crore and has an annual turnover that does not exceed Rs 250 crore.
These small and medium businesses are the backbone of the Indian economy and employ over 130 million people currently. This sector contributes 6.11% to India's manufacturing GDP, 24.63% of the GDP from service activities, and 33.4% of manufacturing output.
The businesses opt for digital infrastructure for easy discovery, more engagement with customers and further business growth.
Benefits of shifting to digital SMBs
If you have not yet transformed your business into digital channels, then you should give it a thought. Shifting your SMB to the digital world will benefit you in various ways:
1. Improved operational efficiency:
Customers in today's world need a quick response to their queries and a fast resolution of their issues. Digitisation can help you to respond quickly to your customer and increase the chance of your conversion.
2. Expanding audience:
Digitisation helps you to reach millions of customers using digital media tools like social media. The increase in your digital reach will help you garner more consumers for your products. Therefore, consequently increasing the sales of your products.
3. Perspective to business:
It also helps you to easily get an insight into data such as customers' behavior, trending products, products review, price comparison, etc. This data helps to strategize your business, reach the target audience and thus increase your profits.
4. Easy remote working:
While remote working is not a new term, it became a buzzword during the COVID-19 pandemic. Some organisations and businesses could seamlessly transition, while some could not. However, it opened doors for new opportunities and unchartered territories. Sellers now no longer have to own a physical store to sell their products. They can sell their products to crores of customers across India through online mediums and eCommerce platforms. This transition was only possible due to the digitisation of businesses.
5. Business collaboration:
SMBs need to collaborate with influencers and different businesses to fulfill different requirements. Digital technologies help to inbuilt cost-effective collaborations and business growth.
6. Better audits and compliance management:
Audits become compulsory in order to regulate your business. This process can be tricky and daunting, but adopting the right set of digital tools can help you adhere to the defined workflow, avoid process gaps, and keep track of all work completed.
Why is it the right time to opt for digital SMB?
Due to various benefits of digitisation, many small businesses are now shifting their focus on it. However, post the COVID-19 pandemic the SMBs started digitisation hastily in order to build resilience. More and more consumers are purchasing products online, causing a boost in eCommerce sales, consequently, more businesses are taking their retail stores online.
According to a report, around two-thirds of small and medium businesses (SMBs) in India used online channels to sell their products and services in 2021.
Post pandemic, digitisation is posing a big opportunity for small businesses to reach their customers directly and cut the cost that arises from paying middlemen and distributors. The profits on products increase by multi-folds when businesses sell directly to customers. Digitisation also helps to connect with customers directly and get feedback, increasing customers' trust in your products.
Did you know? A study by Cisco on ‘Digital Maturity of Indian SMBs’ suggests that SMBs that are more digitally mature enjoy twice as many benefits in terms of revenue and productivity compared with those that have an indifferent approach to digitisation.
It has also become important for an organisation to opt for digitisation as many large-scale industries are investing heavily in it. From robotics to automation, machine learning to predictive analytics - it is becoming a driving force for many businesses. Also, traditional forms of businesses mostly rely on word of mouth for their brand promotion and as a result, have low customer visibility. Thus, it becomes important for businesses to invest in digital transformation to get the above benefits.
Despite the benefits of digitisation and the fact that it is the need of the hour, many SMBs are still new to this. According to a report, Over 30% of India’s SMBs are far from being digital-native.
Opting for digitisation becomes a difficult task for an SMB. Organisations need to hire employees having digital skills, employ suitable technology partners, need to constantly stay up-to-date with industry trends, etc. Digitisation process also involves a hefty financial investment.
If you are one such SMB who wants to opt for digital transformation, then we have got you covered! With our new and exciting initiative that was launched during Smbhav 22 this year, Amazon’s Smart Commerce.
According to a report, around two-thirds of small and medium businesses (SMBs) in India used online channels to sell their products and services in 2021.
Post pandemic, digitisation is posing a big opportunity for small businesses to reach their customers directly and cut the cost that arises from paying middlemen and distributors. The profits on products increase by multi-folds when businesses sell directly to customers. Digitisation also helps to connect with customers directly and get feedback, increasing customers' trust in your products.
Did you know? A study by Cisco on ‘Digital Maturity of Indian SMBs’ suggests that SMBs that are more digitally mature enjoy twice as many benefits in terms of revenue and productivity compared with those that have an indifferent approach to digitisation.
It has also become important for an organisation to opt for digitisation as many large-scale industries are investing heavily in it. From robotics to automation, machine learning to predictive analytics - it is becoming a driving force for many businesses. Also, traditional forms of businesses mostly rely on word of mouth for their brand promotion and as a result, have low customer visibility. Thus, it becomes important for businesses to invest in digital transformation to get the above benefits.
Despite the benefits of digitisation and the fact that it is the need of the hour, many SMBs are still new to this. According to a report, Over 30% of India’s SMBs are far from being digital-native.
Opting for digitisation becomes a difficult task for an SMB. Organisations need to hire employees having digital skills, employ suitable technology partners, need to constantly stay up-to-date with industry trends, etc. Digitisation process also involves a hefty financial investment.
If you are one such SMB who wants to opt for digital transformation, then we have got you covered! With our new and exciting initiative that was launched during Smbhav 22 this year, Amazon’s Smart Commerce.
More About Smart Commerce and Local Shops
Smart Commerce, the new initiative by Amazon, will help local stores to digitise their store operations, create their own online storefronts within minutes, and provide an enhanced in-store experience to customers. The initiative aims at digitising 1 crore small businesses by 2025.
Irrespective of your store size, the initiative will help you to take benefits of Amazon's shopping innovations, logistics, and digital payments, and offer your customers a better experience irrespective of their location.
Selling your products in your local area by opting for Amazon's 'local shop' program will also help you gain many benefits. You can sell a wide range of products like kitchen items, mobile phones, electronic items, apparel, footwear, groceries, etc. through this program. All you need is to own a physical store and arrange for delivering orders to customers in your area on the same day or the next day. This program will help you increase the visibility of your products and thus grow your business.
Are you excited about transforming your traditional business into a digital business? So are we! All you need to do is to register yourself as a local store at Amazon and see a boom in your sales.
Irrespective of your store size, the initiative will help you to take benefits of Amazon's shopping innovations, logistics, and digital payments, and offer your customers a better experience irrespective of their location.
Selling your products in your local area by opting for Amazon's 'local shop' program will also help you gain many benefits. You can sell a wide range of products like kitchen items, mobile phones, electronic items, apparel, footwear, groceries, etc. through this program. All you need is to own a physical store and arrange for delivering orders to customers in your area on the same day or the next day. This program will help you increase the visibility of your products and thus grow your business.
Are you excited about transforming your traditional business into a digital business? So are we! All you need to do is to register yourself as a local store at Amazon and see a boom in your sales.
