Answer to Question #190293 in Management for Priyanka Kansal

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

Answer.

Selling by Amazon during the corona period proved to be beneficial to manufacturers .They enjoyed as there was no opening time restrictions and therefore they could sell anytime .It was also realised that Amazon selling was less time intensive in comparison to face to face selling. They also enjoyed the luxury of high margins and better cash outflows as many people went the e commerce way after corona restrictions on movements and freedom of association. It had a wide range if target market as the business could be operated from anywhere in the world and lasylt,the scale ability obtained was high within

amazon selling.

Technology on the other hand came in as a saviour to many people by making human lives easier. Technology has made communication easier through the invented gadgets like phones where people can communicate anywhere anytime freely.Travel industry has been boosted largely by technology making people reach there destinations easier.Items that get lost can easily be traced and located credits to the technology .Data saving and retrieval became easier as a result of the hnology and lastly, technology has enhanced advertising of products and services thereby making it easier for people.

I think people would continue buying and selling via amazon unlike face to face even beyond corona period.The reason for this is that face to face selling is expensive through it's demand of high number of staffs and the cost of premises where the business is placed and located.It also has high Costa related to travelling and time.A salesperson could even travel for a while day just for a single meeting.