6 Amazing benefits of E-commerce for MSMEs!


In recent era, E-commerce and digital technology options have immersed as one of the most powerful marketing strategy for all types of businesses. With pandemic stress, E-commerce has become a necessity for businesses. It is helping them in re-constructing their businesses and supporting in overcoming the challenges caused by pandemic restrictions.  

As per, “The COVID-19 crisis has accelerated an expansion of e-commerce and provided access to customers to a significant variety of products from the convenience and safety of their homes. E commerce has enabled firms to continue operation in spite of contact restrictions and other confinement measures”. 

Specially for MSMEs (Micro, small and medium enterprises) E-commerce and digital technology options are working as one of the best way to increasing their business reach and establishing new customer base. 

What is E-commerce? What are the common challenges faced by MSMEs? What are some amazing benefits of E-commerce for MSMEs and how E-commerce helping MSMEs selling their products online with minimum investment? Read the post to know more! 

What is e-commerce? 

As per Wikipedia. “E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet”. 

E-commerce involves running the entire purchasing process online that includes online shopping, electronic fund transfer, online transaction, internet marketing and automated data collection.  

E-commerce is a convenient facility that offers many advantages for sellers and buyers. For buyers, it provides a time flexibility and increase the selection options for customers. In same way, for sellers, it gives an amazing opportunity to reach global market and sell their products and services with minimum investment.  

For MSMEs, E-commerce offers various amazing benefits and help in overcoming many common challenges. Here are some common challenges faced by MSMEs. 

Common challenges faced by MSMEs 

  • Limited resource: MSMEs often have limited resources including finance and other measures.  
  • Lack of knowledge of digital technology: specially, in rural areas, MSME business owners have less information about E-commerce and latest digital tech options. They find it hard to take their businesses online on their own and deprive from amazing benefits that E-commerce can provide for their businesses.  
  • Limited reach: MSMEs often rely on traditional marketing methods that limit their business reach and at the end, it limits their business profit too.  

E-commerce can offer great help in overcoming these common challenges faced by MSMEs and expanding their small-scale businesses. Here are some amazing benefits of E-commerce for MSMEs! 

6 amazing Benefits of E-commerce for MSMEs!


Global reach 

Increased reach
increased reach

This is first and most important benefit of E-commerce for MSMEs. With the help of latest digital technology, small businesses can open an online store. With this E-commerce help, they can sell their products/services to global market. Expanding reach is first step that help in growing their customer base with faster rate.  

Increased business revenue  

Increased business revenue
Increased business revenue

This is the second important benefit of applying E-commerce and digital tech options to small businesses. Ecommerce not only helps in increasing the reach for small businesses but it provides an amazing “time flexibility” as well.  

Unlike the physical stores, there is no fixed time limit for selling your goods with E-commerce intervention. Increased reach and time flexibility work as a great contributing factor for increasing business revenue and business profit both.  

As per a recent  report, India’s e-commerce sector is projected to reach $80 billion by 2021 and $300 billion by 2030. And will help in providing economic stability and growth.  

Reduced overall investment, maintenance & operational cast 

reduced cast
Reduces cast

This one is another important benefit of E-commerce for MSMEs. MSMEs usually works on tight budget and often have limited financial resources. Running and maintaining a physical store requires a proper investment. A solid financial set up is essential in managing maintenance and operational cast of physical store that includes paying a rent and offering a salary to supporting staff.  

When we compare, E-commerce option is way more convenient and cheaper than physical store. It can run efficiently with a minimum investment and operational cast. E-commerce helps MSMEs sell their products and services online with minimum investment and this one is major relief for MSME business owners who have limited financial resources.  

Getting online reviews can be a great help 

Get online review

Nowadays various social media platforms (Instagram, Facebook, Twitter etc.) can offer a great help for MSME business owners. These social media platforms can be used an integral part of digital marketing and spreading the word about products/ services.  

MSMEs can create a business page for their business on various social media platform and ask people to leave a review on their page as per their customer experience. Getting direct feedback from customers help in improving their products and services and also work as an amazing factor in spreading word about their businesses.  

SEO and google analytic can be a useful tool for increasing organic reach 


Though E-commerce is convenient in many ways but it is equally an over competitive field too. It is not easy to stand out among crowd of amazingly talented people who all want to grow their business.  

In this over-competitive scenario, SMSE business owner can use SEO (search engine optimization) as an immensely helpful tool to increase their website traffic and enhancing organic reach. They can optimize their ecommerce website for SEO and can attract large number of customers organically.  

In the same way, google analytic is also a great way to know the stats and organic reach of their businesses. After understanding this algorithm, MSMEs can make an effective marketing strategy to increase their business reach.  

Increased customer experience & satisfaction 

customer satisfaction
Customer satisfaction

Customer satisfaction is a matter of prime importance for any business owners. This is the key to create a settle base of customers that trust your products or services. E-commerce involves inclusion of various impressive features like (tracking the order status, safe and reliable online transitions, option of earning reward points etc.). All these features increased customer experience and ultimately helps in growing the businesses.  


As a conclusion,” E-commerce is working as an effective force in expanding reach and overall growth of MSMEs. In recent pandemic era, it is a necessity for MSMEs to survive in over-competitive market and sell their products and services with minimum investment. Indeed, it is a best way to make your business future ready from comfort of your home”.  

So, these were some incredible benefits of ecommerce for MSMEs. What are your thoughts about it? Please share with me.  

Written as part of Blogchatter’s campaign #ECommerceBuildsEconomy 

Read also: 

#EcommerceInnovation: How supporting small businesses help the economy! 


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