Outperforming the offline and omni-channel vendors in job creation, the online vendors have been a key driver of employment generation in the country. The online vendors employ 54 per cent more people and nearly twice the number of female employees, as compared to offline vendors, according to a report by policy think-tank Pahle India Foundation. The online vendors generate about 15.8 million jobs, including 3.5 million jobs for women.
The report titled ‘Assessing the Net Impact of Ecommerce on Employment And Consumer Welfare In India’ stated, “Each ecommerce vendor employs about nine people, about two of whom are female on average, while each offline vendor employs about six people, about one of whom is female.” Omni-channel vendors employ about eight people on average, including two female workers.
The report stated that the online vendors reported the highest net growth in jobs in management at 42 per cent, followed by 39 per cent in marketing. Around 71 per cent of the vendors reported that the management tasks have become more digitally-enabled and 63 per cent of vendors take the route of outsourcing for tasks under this function.
Nearly 23 per cent of vendors point out that new employment opportunities have been created under marketing and sales since the shift towards online sales took place. Management functions and operations have assumed importance with the shift to online sales.
Data management, packaging and delivery and social media management have been the top three employee skills that online vendors demand. The website, app services along with computer services, too, have assumed importance.
At least 60 per cent of the vendors have reported growth in sales since they started selling online, while 52 per cent have registered an increase in profits since the transition. 58 per cent reported an increase in both segments, as per the report.
More than half of the omni-channel vendors have witnessed an average purchase value per customer greater than Rs 500, while the percentage of exclusively online vendors reporting the same is more than one-third.
As far as traditional retail getting impacted by ecommerce is concerned, less than 20 per cent of the offline vendors have witnessed the closure of physical stores in their surroundings since 2020. Only 6 per cent of the vendors have cited the shifting of consumers to online shopping as the reason for the brick-and-mortar store closures.
About 86 per cent of offline vendors believe that ecommerce growth has not affected their employment generation. Instead, 14.4 per cent of such vendors feel that they are now prioritising packaging and delivery skills in their employees.
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