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The micro, small and medium enterprise (MSME) sector is important for the creation of new jobs and is often considered the backbone of the economy. In addition, this industry creates low-cost employment opportunities in rural areas, which helps reduce the regional imbalance in the economy.
The sector is heavily impacted by external factors and has been affected by COVID-19, as have all aspects of the economy, but MSMEs have been particularly affected due to supply-side disruptions and shrinking demand.
However, large companies are reporting significant growth in e-commerce despite the financial crisis. Brands around the world needed to use e-commerce channels to stay profitable. Even well-established, traditional businesses realized they had to sell online to survive the global financial crisis.
Faced with the rapid digital revolution and a slowing economy, companies must be creative and open to adapt. In this regard, some of the technologies that will be crucial in driving the transformation of e-commerce businesses include:-
Custom machine learning solutions are beneficial to companies that provide knowledgeable, out-of-the-box solutions to solve specialized and unique challenges. To improve e-commerce photos, identify e-commerce fraud, create content automatically and provide personalized insights, machine learning APIs will be used.
Due to an increase in solutions that help develop the full data stack, from data collection and monitoring to data storage and from analytics dashboards to machine learning models, Full-stack data will become more common as enterprise data stacks change.
Using automated ideas and actions, automated creative production, and experimental testing to optimize digital advertising across a range of platforms, including Facebook, ad optimization can help organizations increase their return on investment. large-scale advertising.
MSMEs are also regularizing price adjustments and raising prices as part of the company’s plan to stay alive despite economic hardship. Cash savings could see a significant loss in purchasing power as inflation rises. This implies that having a lot of cash on hand could be dangerous. Companies plan to invest this money to stay ahead of the market.
Effective inventory management is a different measure that MSMEs consider. Sourcing goods and/or raw materials before supplier prices rise is a way to fight inflation. Businesses avoid putting their cash reserves at risk when making purchases at the same time.
E-commerce has grown globally since 2020 at an unprecedented rate. In the race, India was not far behind. In fact, the Indian e-commerce market has grown at one of the fastest rates in the world and has seen success. India’s e-commerce industry is reported to have grown by 84% between 2020 and 2025. According to industry estimates, online sales now account for 8% of all retail sales in India, up from 3.7 % before Covid-19 impact.
A complement to the existence of physical stores would be provided by online platforms. Since it is more convenient, people like to have a choice between offline and online outlets. According to reports, having both channels increased average purchase rates by 35%. Setting up an online store is a smart move to stay competitive and keep up with the company’s e-commerce finances. Although inflation cannot be avoided and presents particular challenges for small business owners, it need not be a panacea for everyone. MSMEs are surviving the economic downturn despite the challenges.