Ease of Doing Business for MSMEs: With the Covid impact gradually abating, small and medium enterprises (SME) sellers on Amazon are looking more upbeat about the upcoming festive season. Amazon, which has over 8.5 lakh sellers on its India marketplace, on Tuesday said 78 per cent of 1,965 sellers surveyed to gauge their expectations from the festive season mentioned reaching out to new customers while 71 per cent expected an increase in sales. The survey conducted by Nielsen between August 30 and September 9, 2021, noted that 62 per cent sellers expected an increase in visibility of products while 71 per cent mentioned business recovery post lockdown. While Flipkart on Tuesday announced dates (October 7-12) for its Big Billion Days sale, Amazon is yet to do so for its Great Indian Festival sale. However, it has already teased the sale event.
While Amazon sellers are expecting a better response this year, only 28 per cent of the surveyed sellers claimed that they will be launching new products this festive season while 31 per cent plan to make additional investments this festive season to achieve their business goals. In terms of hiring and investing in the training of personnel as well, 35 per cent are looking to invest in seasonal hiring to meet the increase in demand while 45 per cent claimed that they will invest in training of personnel. Among surveyed sellers, 36 per cent sellers claimed that they will invest in boosting their inventory and warehousing and over 40 per cent expect their business to grow by 50 per cent.
“One of the most important metrics for festive season events is how we contribute to the success and growth of the lakhs of sellers on the marketplace. This festive season, we continue to strongly prioritize efforts to enable sellers to bounce back from the economic disruption caused by the COVID-19 pandemic and accelerate their business growth. The findings from the study indicate that our efforts are aligned with the needs and expectations of the SMB sellers,” Sumit Sahay, Director, Selling Partner Services, Amazon India said in a statement.
Moreover, nearly 50 per cent respondents indicated that they will sell on Amazon.in during the festive season for the first time. Amazon will have more than 1,000 sellers, among respondents, selling again during the festive season, of which 86 per cent expect an increase in sales this year vis-à-vis last year with over 50 per cent of them expecting at least a 25 per cent growth in sales in comparison to last year.
While Amazon prepares for the upcoming festive sale, it has launched a probe into a case pertaining to its legal representatives in India after a whistleblower’s complaint alleging that bribes were given to government officials in India by one or more of its legal representatives, according to a report by the Morning Context on Monday. In response to the allegations, Amazon had responded that it has zero-tolerance for corruption and that it will fully investigate the issue.
Amazon along with Flipkart is already facing a probe by the Competition Commission of India against the alleged unfair business practices such as preferential treatment to some sellers. However, both companies have repeatedly claimed full compliance with Indian laws.
Source: https://www.financialexpress.com/industry/sme/msme-eodb-amazon-survey-over-70-sme-sellers-expect-sales-growth-access-to-new-customers-this-festive-season/2334548/