Ecommerce bounces back to recovery as states lift restrictions on non-essential sales


The Maharashtra government’s decision to allow delivery of non-essential items is deemed to bring some relief to ecommerce companies and help them unleash their operations to some extent.

Although ecommerce firms have been neutral about this development leading to any significant spike in sales, the easing of curbs will now permit consumers to purchase goods across various categories and this will surely go a long way in enabling small businesses to bounce back on their original trajectory to a considerable extent.

As a state that is replete with large warehouses of ecommerce firms, this move by the Maharashtra government is welcomed by firms across the state and it would enable e-tailers and sellers to easily navigate logistics through the state.

An industry source however reported that a district magistrate can still issue directives to cease the delivery of ‘non-essentials’ in the event of a spike in Covid-19 positivity ratio in a particular district.

The skepticism pertaining to etailers not benefitting much from the move, however, stems from the fact that consumers were essentially trying to save for healthcare needs and are now spending only on things they need on an urgent basis. Some sources have also expressed that there was no impulse buying or lucrative purchases, reflecting the broader stress in the economy.

Although groceries and healthcare nutraceutical products have reported some growth, segments like appliances, furniture and home decor have been affected.

For things to improve on both the demand and supply side, industry leaders believe that structural issues need to be taken up as things are yet to go back to tthe original levels of last year.

A good momentum of vaccination and ease of capital on the supply side may go a long way in alleviating the hiccups, expressed an ecommerce official.

The growth in ecommerce volumes had plunged 11% in April compared to March as consumers preferred buying essentials online.

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