In an age where business happens online, lack of funds should not hamper sellers. This is a key lesson that ecommerce sites operating in India have learnt from the world’s largest ecommerce platform Alibaba Group Holding Ltd (NASDAQ:BABA), they claim. Recently, two of the more popular sites, chose to offer small and micro-business sellers the means to fund themselves from the organized banking sector.
Though urban India revels in the online market place, however, it is the rural and suburban areas which have caught up with the digital lag. Buyers from remote cities and Tier II and Tier III cities are happy to click on their low-cost mobiles and be part of the ecommerce revolution. This in turn has helped local businesses to scale strengths and match demand. However, the lack of funds for further expansion and incremental capital itself is a problem for many of the sellers here.
Therefore, the country’s largest ecommerce site, Snapdeal has followed Amazon.com, Inc (NASDAQ:AMZN) India’s footsteps in partnering local banking giant, State Bank of India. The banking services now allow small time business owners such as stone workers or artisans, to seek further funds.
Apparently the inspiration to reach out to the sellers came to the ecommerce sites, from Chinese giant, Alibaba Group Holding Ltd (NASDAQ:BABA).
Much of the revenue for these ecommerce sites comes from the commission they gain from the sellers on their platform. Hence, it is vital that the small as well as the medium enterprises are equipped with business infrastructure as well as capital means for growth.
Alibaba Group Holding Ltd (NASDAQ:BABA) inspired banking support will allow the small businesses to buy and sell more, claims Snapdeal Chief Executive Officer Kunal Bahl. He is positive that the local businesses can scale as growth drivers continue to expand the online retailing space.