While the lion's share of it will be taken up by the tech-giants such as Flipkart, Amazon and Paytm, there is an emerging category which is partaking in the digital participants coming in and clocking some great numbers, called 'Resellers’, specifically non-tech ones.
Case in point, the Indian e-commerce market, which has been completely dominated by Amazon and Flipkart in terms of volume, has spawned over 2 million resellers (mostly housewives), channeling $9 Billion annually in revenue.
With the e-commerce market revenues projected to reach a staggering $220 Billion by 2022, the revenue share of resellers alone can go up to anywhere between $48-60 Billion.
Generally, these resellers operate by sharing the product images and details on social media platforms such as Facebook, Instagram, WhatsApp etc. If the end-consumer sees something they like, they end up placing an order through the different payment methods (cash on delivery, online payment gateways or mobile wallets), which suggests that the resellers, in general, make about 15-20% commission on the order value of the products that they sell, which is far less compared to the actual potential that a reseller can realise.
To combat this, 'Social Commerce Startups' like Meesho, Glowroad and more have enabled resellers to set up their own e-commerce businesses with minimum friction or investments. This success story will only lead to more startups to incorporate resellers into their products as a means of distribution going forward. This will unlock more such opportunities for resellers to participate in digital wealth creation, a sector of the economy is which is growing a rapid pace going forward.
At Favcy we work very closely with our cohorts of startups to set up their resellers model and are additionally investing in creating a network of resellers that are motivated to partake in the ‘Digital India’ story going forward.