Answer to Question #186621 in Management for Nachiket Pawar

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?

I want more elabrated answer of this question

Answer 1

Overall, the lockdown was a difficult time for a vast majority of sellers owing to selling restrictions and lower demand. Amazon took steps to support sellers during the lockdown period through measures such as 50 percent waiver on Selling on Amazon (SoA) Fees, waiver on storage fees, refund for cancelled orders etc. However, once the lockdown lifted, stay-at-home orders and social distancing guidelines played a role in growing the popularity of ecommerce. Post lockdown too, e-commerce was a preferred option since people were wary of shopping in crowded malls. While ecommerce had already been growing over the years, the current pandemic has helped truly demonstrate its value. A lot of growth came from first time online shoppers fromtier 2 and tier 3 cities. And these shoppers are likely to stick around.