Snapdeal, India’s leading value-focused e-commerce marketplace, plans to add another 5,000 manufacturer-sellers on its platform this year.
In the last one year, many manufacturers of daily use products like steel and copper utensils, kitchen gadgets like juicers and atta dough makers and fashion accessories like watches and wallets have started to sell online directly on Snapdeal, bypassing the traditional structure of selling through wholesalers and retailers.
The fast growth of the online market, especially in the non-metro centers, is allowing these manufacturers to tap a new set of always-connected customers, which traditional retail structures cannot capture.
Direct sales to consumers translates into higher margins for the producers, as multiple links in the retail chain are replaced by the platform. Other savings that accrue to the producers are through more efficient utilisation of stocks since stocks are not stuck at multiple points unlike in traditional, layered physical channels.
The ability to sell directly also means that producers get prompt feedback from the users, allowing them to make appropriate decisions regarding future demand and trends.
Snapdeal plans to add another 5,000 such manufacturer-sellers on its platform over the next 12 months. It expects most of these manufacturers to join from India’s production hubs like Meerut, Ludhiana, Tirupur, Jaipur, Panipat, Surat, Rajkot etc. Through these additions, Snapdeal expects to deepen its selection for kitchen utensils, leather products, toys, bedsheets & blankets and ladies fashion (kurtis, sarees, hosiery garments & knitwear).
According to a Snapdeal Spokesperson, “E-commerce has immense potential to stimulate economic growth by increasing efficiency and improving access. By taking specific measures to link domestic demand with domestic production, we aim to maximise the benefits of e-commerce for small and medium businesses and for the consumers.”
“While the first phase of e-commerce sales in India was led by traders and distributors who worked closely with brands, now the share and role of manufacturers in online sales is growing faster,” Snapdeal added.
Snapdeal has seen rapid growth in order and business volumes. This growth has caught the attention of manufacturers who specialize in the value-priced segment and who see Snapdeal as the best fit for their merchandise and clientele. There has been a steady increase in sellers on Snapdeal who manufacture their own products.
In order to boost business for sellers, Snapdeal has executed a variety of initiatives in the last 12 months. These include providing analytical inputs regarding consumer preferences, demand projections at multiple price points and competitive landscape analysis to help sellers plan their sales strategy.
Indian e-commerce is now growing beyond the first 100 million urban users. A market of potentially 400 million new users is emerging across India’s Tier 2 and 3 cities, growing still deeper into smaller towns across the country. Over the last two years, Snapdeal has deepened its focus on value-priced merchandise. It has added 60,000+ new sellers, who have added over 50 million new listings which has helped build a deep assortment of products relevant for value-savvy buyers. Snapdeal witnesses more than 80 million visits every month with buyers browsing the 200 million+ listings by nearly 500,000 registered sellers on the platform.
In December 2019 Snapdeal announced that its network covers more than 26,000 pin codes across India, which includes all the metros, Tier 1 and 2 cities and most of Tier 3 and 4 towns of India.