Answer to Question #191918 in Economics for Vishal D Thawani

Question

The recent Covid-19 pandemic has turned the world upside down with several businesses shutting shop owing to mounting losses. Yet, in these pandemic times, e-commerce is one twinkling star that has been gathering strength after strength. How has Direct Selling Experience via Amazon India helped small scale manufacturers of handicrafts or any other item of your choice during these pandemic times. As an external consultant, try to analyse the reasons behind the success of these small-scale manufacturers. Provide some statistics on how technology has made the lives of small-scale manufacturers simpler? In your opinion, do you see this as a future once the Covid-19 crisis gets over or do you see manufacturers trying to sell their handicraft/other products face to face again?

Answer 1

As a result of the well-known events of the past year, which entailed significant economic shocks and transformations, the growth trend of the e-commerce market has intensified many times over. The previously observed vigorous movement of business towards mastering and developing its brand on the network has become even more active as a result of the pandemic. And this is not surprising, because, firstly, the restrictions that have arisen related to preventing the spread of COVID-19 have put many companies in a position in which online commerce has become the only possible option for their survival. And, secondly, the pandemic also had an impact on the behavioral activity of the consumer, who, in the conditions of covid hysteria and mask mode, began to visit less familiar offline trading platforms, preferring online stores to them.

These and other factors lead experts to predict significant growth of the online market in the near future. By some estimates, online sales are expected to approach $ 6.5 trillion by 2023. dollars, whereas in 2019 alone this figure was 3.5 trillion.

Handicraft products are characterized by the exclusivity of each product, therefore, having gained experience in online sales, this practice will not only continue, but also expand.