Online purchases were highest in the states of Maharashtra, Delhi and Karnataka, while Andhra Pradesh, Tamil Nadu and tier-III cities are deemed to be promising markets for SMEs to enter into with their ecommerce businesses, according to a study.
Apparel and electronics took the largest chunks of the market share in the ecommerce space, while gifts and other services were the least opted for by SMEs, said a study by DIY e-commerce portal Zepo which surveyed nearly 900 small merchants for the study.
Maharashtra has the highest number of SMEs that have set points of sale online while those in Gujarat, Uttar Pradesh and Karnataka, on the other hand, look like those who have the highest probability to go online in the near future. Currently, only 5% of Indian SMEs have a web presence.
The country also seems to have shifted from Cash-on-delivery (COD) being the prime mode of payment to a majority of shoppers now making transactions online. Only 28% shoppers now prefer COD, as opposed to 59% who are using credit and debit cards to make transactions.
[Edit Note: The report was based on 900 merchants who are selling on Zepo’s e-commerce platform so it can’t be representative of the entire e-commerce industry which is dominated by players like Flipkart, Myntra and Jabong. However, this is a good representation of small e-commerce businesses.]