In a country where employment opportunities are a critical concern, ecommerce has emerged as a powerful engine of job creation. On average, ecommerce vendors employ 54% more people than their offline counterparts. This isn’t just a quantitative increase but a qualitative shift in employment.
Micro biz
Amazon’s ‘I Have Space’ programme partners with local kirana stores to facilitate last-mile deliveries. This initiative has provided additional income to small businesses and created a network of micro-entrepreneurs. Similarly, platforms like Flipkart have created extensive supply chains that have generated thousands of jobs in logistics, warehousing and customer service, many of which are filled by individuals from small towns and rural areas.
Gender bender
eCommerce vendors are employing twice as many women as their offline counterparts. Companies like Naaptol are promoting female employment, especially in their customer service and logistics departments. This trend is significant in a country where women’s participation in the workforce has been low.
Tech it easy
As ecommerce grows, so does the adoption of tech. This upgradation has been a double-edged sword – while it has streamlined operations and increased efficiency, it has also raised concerns about potential job losses due to automation. However, the reality appears to be different.
BigBasket’s advanced inventory management and logistics technologies have improved operational efficiency and created new jobs in IT, data management and customer service. Urban Company has empowered skilled professionals by connecting them directly with customers through a digital platform. This model has created a new category of employment that didn’t exist a decade ago, transforming the way these professionals work and earn.
However, the benefits of tech upgradation have not been evenly distributed. Traditional artisans and vendors, especially those in rural areas, often struggle to keep pace with digital advancements. In Varanasi, for example, many traditional weavers find it challenging to adopt digital platforms due to a lack of digital literacy and access to tech. This digital divide poses a risk to the inclusive growth potential of ecommerce, highlighting the need for targeted interventions to ensure that all segments can benefit from this digital revolution.The impact of ecommerce on consumer welfare has been profound. The widespread adoption of services like Swiggy and Zomato exemplifies this trend. These platforms provide consumers with choices, competitive pricing and the convenience of doorstep delivery, which has become a significant value proposition for urban consumers.While ecommerce has enhanced consumer welfare, it has also introduced new challenges.
- Grievance redressal remains a weak spot, as evidenced by the experiences of customers during festive sales on platforms like Flipkart’s Big Billion Days. Issues such as delivery delays and product quality complaints have surfaced, highlighting the need for better consumer protection mechanisms.
- While ecommerce is often seen as cost-effective, associated costs like shipping, exchange and subscription fees have been on the rise, which could dampen consumer enthusiasm if not addressed.
Contrary to the ‘retail destruction’ narrative, traditional retail in India is not being wiped out by the rise of ecommerce. Instead, it is evolving. Many offline vendors are adapting to the digital age by integrating tech into their operations. Reliance Retail’s JioMart, for example, has adopted an omnichannel approach, allowing consumers to order online and pick up from their nearest store. This strategy blends the convenience of online shopping with the tactile experience of physical retail, creating a win-win situation for consumers and businesses alike.
Moreover, many local kirana stores have adopted digital payment systems like UPI, making transactions smoother and more aligned with modern consumer expectations. This integration of digital tools into traditional retail practices suggests that the future of retail lies in the coexistence and collaboration between ecommerce platforms and brick-and-mortar stores.
The ecommerce revolution isn’t just a shift in the way we buy and sell goods. It is a transformative force reshaping the economy, creating jobs and enhancing consumer welfare. But to fully realise the potential of this digital revolution, it’s crucial to address challenges it brings, particularly the digital divide and the need for stronger consumer protection. By fostering an environment where ecommerce and traditional retail can coexist and thrive, India can harness the full benefits of this new economic paradigm, ensuring inclusive and sustainable growth for all.
The writer is MD-CEO, PRICE
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