Our country's small businesses are an important part of the Indian economy. These industries include handicrafts, grocery stores, medical supplies and hardware shops to name a few! They create jobs for many people in our nation who depend on them as well-paying employers with steady work hours that provide security against unemployment or inflation during hard times.
The contribution these enterprises make towards social stability can't be overstated - it ensures everyone has access food enough nutritious meals each day even if there was some kind of disaster or lockdown.
Since last year, most shopkeepers suffered greatly as a result of the pandemic, and they experienced significant losses. However, when it comes to online shopping, it received a positive response, and the business rose significantly. Rather than having to venture out into crowded neighborhoods to do their own shopping, people choose to stay in their homes and purchase products, which may include anything from clothing to food to prescription medications to fruits and other produce. Since the inception of online buying, a number of small shopkeepers have experienced difficulties.
Why are customers choosing internet businesses over physical stores?
Most consumers shop online at least once a month. Since all of these purchases are performed online; so all of these purchases have a tangible impact on the local economy. But why do people buy online?
1) During the festival season, e-commerce players offer substantial discounts in order to attract clients.
2) Online retailers provide a variety of membership choices.
3) It saves time by not having to travel for shopping.
4) EMI choices are available through online businesses.
5) Various goods are offered at a wide range of prices.
How Online Sales Can Have a Negative Impact on a Community's Economy
1) It is possible that the most significant negative impact of internet sales on the economy is that they diminish the amount of sales tax that the state collects, as well as the amount of other local taxes that municipalities and counties collect.
2) In part because small businesses who are required to charge appropriate taxes may have a more difficult time competing with online sellers that do not charge these taxes in addition to the price of their products. Customers who opt to shop online rather than in a brick and mortar store in order to save money are limiting the potential of the local company to expand.
3) Online purchases may also have the effect of draining money from the local economy. Suppose a customer buys a present from Amazon rather than from a local business; the money goes to Amazon rather than to the consumer's local community.
There are a number of things that local retailers can do to combat competition from online firms
1) Make a social media strategy and build an online presence. The main goal is to make contact with your business's potential customers on the internet. The mere existence of an online storefront that promotes your goods or services won't accomplish the trick.
2) Do not try to appear everywhere. you can try making a point of focusing your attention on just one or two social networks. Once you've built a huge following on one platform It becomes easier to make yourself known on other platforms.
3) Offer a wider selection of products.
4) Nowadays, consumers want choices. When they visit a shop with the intention of purchasing an item, some customers might leave without buying due to the fact that a certain size or style, color, or model isn't readily available. Small businesses can borrow pages from major online retailers to be able to anticipate the needs of customers by offering other, unrelated or non-competing products.
5) Do not overlook the process of returning. Customers expect the same top-quality service from every interaction with you regardless of how they contact you, and that includes the return process.
6) Anticipate customer needs. Think about your post-sale contact procedure.
7) Allow seamless operation through partner companies