Home / Industry / Infotech /  E-marketplaces provide great advantages to small retailers, finds study

It is often feared that e-retail platforms such as Amazon and Flipkart will bring about the decline of small retailers. But the fact is even the small retailers find it majorly beneficial to use such marketplaces to sell their products. Why so?

A study, conducted by a three-member team of Jaipuria Institute of Management, finds that on joining such platforms small retailers get access to a larger consumer base and high-tech infrastructure. Moreover, consumers and government's preferences for environment-friendly measure is also a major driving factor. Around 250 small retailers selling apparel and home decor items across NCR were interviewed by Richa Misra, Renuka Mahajan and Nidhi Singh from the management college to conduct the survey.

Being part of an online marketplace makes the sellers more recognizable. On having a prominent online presence, small retailers are saved from the struggle of finding or creating their own customer base. Further, they can make use of the advance technologies offered by the e-marketplace. For example, in terms of payments, these retailers can offer their customers the option of cash-on-delivery, monthly installment etc, assuring them that their payment details are safe.

Further, for doing more businesses online, these retailers become entitled government incentives under the Digital India mission.

With changing lifestyles, more and more consumers are moving online and hence, the retailers have to adapt as per consumer demand.

Owing to fast fashion, the apparel sector, in general, is very competitive. Hence, the sellers need to be dynamic. And for being present online, these small retailers can respond quicker to competition and set the right prices for their goods.

Home decor, the other part of the study, is still dominated by unorganized sellers. The authors suggest e-marketplaces should emphasize in providing them better visibility, potential increase in their sales, and their ability to compete with others.

Also read: “Understanding Factors Affecting Receptivity Towards Adopting Electronic Marketplace: A Merchant Perspective" (

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