Answer to Question #184363 in Management for Vaibhavi

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

Amazon India has been a great deal to many small-scale manufacturers during the Covid-19 pandemic crisis because it has offered a market platform for all products from manufacturers.

During the Covid-19 crisis, there have been several instances of lockdown, job losses, and stringent measures to curb the spread of Covid-19, which has not gone down well with most businesses. Lockdowns have led to the closure of most business stores as job losses reduced the number of customers for several enterprises. However, Amazon India’s opportunity for direct selling has helped most manufacturers find a platform to market and sell the produced products to close and far customers. The manufacturers have also been favored by the low selling charges at Amazon India, making it easy to make some savings.

As opposed to in-shop selling, online selling has helped small businesses save on storage charges since there are no renting shops for retailing products. Moreover, the existence of e-commerce technology has enabled manufacturers to find it easy to make goods. Listing of products for sale online offers both marketing and selling opportunities and reaching several customers on the same platform, which saves on costs.

Most manufacturers and other businesses have resorted and adapted to the e-commerce way of business during the Covid-19 crisis. The results have been favorable to the individuals owning the businesses. Therefore, it is relevant to attest that even in the post-Covid-19 times, most manufacturers will maintain and prefer online selling of products to face-to-face deals.