Traditional Businesses From Tier II And Tier III Cities Flourish On Ecommerce Platforms

In recent years, traditional businesses from Tier II and Tier III cities in India have been experiencing an unprecedented boom, reaching new and bigger markets not just in Tier I cities but also in metros across the country. This remarkable growth is primarily driven by the advent and expansion of ecommerce platforms like Amazon and Flipkart, which have provided these businesses with a powerful avenue to showcase their unique products to a vast and diverse customer base.

Sellers Witnessing Sales Surge With Ecommerce 
One such story is Ashfaq from Green Earth in Jaipur, Rajasthan. Ashfaq has witnessed a significant uptick in sales, with a commendable 20 per cent increase since partnering with ecommerce platform like Amazon. Ashfaq says, “The support and efficient logistics provided by Amazon helped us expand Green Earth's reach across India and streamlined operations by managing shipping, delivery, returns, and customer care.

Ahmed from Kashish Rugs in Mirzapur, Uttar Pradesh, shares a similar experience. His sales have surged remarkably, boasting a 40 per cent increase post the transition from their offline store to selling on ecommerce. “Our customers are more inclined to make purchases through platforms like Amazon as it is a more trustworthy option,” Ahmed explains.

Avani Nathwani from Gulab Oils and Foods in Rajkot, Gujarat, also highlights the positive impact of e-commerce on their business. “After introducing Gulab Cold Pressed Oils on ecommerce, we noticed a tangible increase in both brand awareness and visibility, enabling us to reach a broader audience,” she says.

Providing Larger Reach And Customer Base To Traditional Businesses 
Abhishek Jain, India Head for Local Shops and Merchant Fulfilment Network at Amazon, explains how the ecommerce marketplace supports traditional businesses. “Launched in 2020, ‘Local Shops on Amazon’ is a programme that enables local entrepreneurs, kirana & neighbourhood store owners, and offline retailers to tap into the growing domestic markets through the e-commerce ecosystem,” he says.

Abhishek explains, “Through digital enablement initiatives, Amazon offers training sessions to educate sellers on the benefits of ecommerce and guide them through the joining process. These sessions also help us gather feedback and understand the challenges and concerns of the sellers.”

He adds that so far, the "Local Shops on Amazon" programme has flourished into a vibrant platform, encompassing over 350,000 brick-and-mortar retailers and neighbourhood shops across 344 cities.

Digital Payment Systems And Smartphone Proliferation
The rise of digital payment systems and the proliferation of smartphones have further fueled this ecommerce revolution. Even small business owners in remote areas now find it feasible to manage online sales and customer service, thanks to user-friendly apps and robust support from e-commerce platforms. The pandemic, which pushed many consumers to shop online, also played a crucial role in accelerating this trend.

Preserving Tradition And Promoting Economic Growth
The benefits of this ecommerce integration extend beyond business growth. By connecting local producers with urban consumers, these platforms help preserve traditional crafts and skills that might otherwise fade away. They also contribute to the economic development of smaller towns and rural areas, creating job opportunities and encouraging entrepreneurship.