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Small e-commerce companies fighting to stay ahead

As Amazon and Walmart battle it out for a larger portion of India’s e-commerce market share, small e-commerce are worried about their future. Tech firms are now coming to the rescue of such physical store owners and helping them out with digital technologies. Snapdeal, which has turned its focus to the mass market, catering to the customers in Tier II and III towns, has witnessed a 40 per cent spike in seller activity which were previously dipping, leading to 2.5X growth in order volumes, revealed Snapdeal insiders.

On the other hand ShopClues, which has reportedly been shopping around for a buyer, plans to open a pan-India network of experience stores that will showcase its in-house exclusive labels like Digimate, Home Berry and MEIA. In the online world, economics in some segments such as grocery may be even more one-sided.

Anil Kumar, CEO of RedSeer Consulting says smaller firms do not have deep pockets to offer price, convenience, fulfilment at scale, they would necessarily have to offer customers a unique value proposition that the big players do not have, in order to survive.

E-commerce is still only 2 per cent of retail, so there are opportunities for multiple players operating in different segments of the consumer spectrum. All is focussed on the lower-income Bharat consumers who are largely underserved, and that’s a huge opportunity, says Sanjay Sethi, co-Founder and CEO, ShopClues.

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