E-commerce increases business for SMEs: Study

             Online marketplaces are fuelling growth for small and medium enterprises (SMEs) in India, according to a joint report by Snapdeal and KPMG India. SMEs contribute about 17% to India's GDP (gross domestic product) and the report highlighted that the scale of businesses and profits have increased after they embraced e-commerce platforms.

The report said 46% of SMEs reported an increase in business through listing on online marketplaces, while those using internet for business saw 51% higher revenues and 49% more profit.

About 85% of the SMEs who adapted to the e-commerce model realized that it was a cost-effective medium to grow sales and a majority of them reported 60-80% reduction in distribution, marketing and sales spend to get incremental business.

Commenting on the release of the report, Kunal Bahl, co-founder and chief executive, Snapdeal, said, "With over 200,000 sellers operating on our platform, we felt the need to conduct a systematic unbiased study to identify opportunities and challenges to further accelerate the growth of the sector. This study has given us deeper insights into what more we can do to enable small businesses become more successful online."