Majority of MSME retailers stock 40 more pieces for holiday season, prefer invoice finance to COD
The holiday season for retailers means huge demand and stiff competition. And retailers’ preferred strategy for capitalizing and navigating the season is to gear up with more inventory. Nearly 70% of retailers reported stocking at least 40% more than they usually stock during the non-festive season.
Solv, a B2B e-commerce marketplace, recently conducted a “Retailer Trends: Festive Edition 2022” survey, to understand how small and medium retailers are preparing for increased demand during the festive season, their financing preferences, their adoption and experience of B2B e-commerce platforms for ordering and delivery, and other aspects of their business.
- Huge adoption of B2B platforms for ordering
Most retailers have traditionally sourced from offline sources. But the COVID-19 pandemic and the deep penetration of technology – including B2B e-commerce marketplaces in recent years – has encouraged many retailers to try online channels as well.
The survey found that 83% of respondents now order at least 20-40% of their inventory online through B2B marketplace platforms, and the remaining 17% order up to 60-80% of their inventory online.
- Preferred payment option through invoice financing for 50% of retailers
Nearly 50% of retailers surveyed indicated that invoice financing is their most convenient and preferred payment option.
43% of respondents still prefer cash on delivery (COD), with card payments being preferred by only a small minority. Technology-enabled invoice financing allows small merchants to borrow working capital against unpaid invoices, which eases their cash flow and allows them to generate more business.
Businesses are rated and credit is decided through transaction data, making it more suitable for micro and small businesses whose creditworthiness or financial condition is often difficult to determine.
- 34% of retailers name WhatsApp as the top discovery channel
Being discovered by customers and connecting with them has become much easier for retailers with the growing popularity of social media apps, especially WhatsApp.
51% of retailers surveyed said customers discovered their brand through social media, with 34% only through WhatsApp.
Television advertising, which was the main source of brand discovery and communication until recently, now represents only 17% of brand discovery.
Other interesting survey results include top-selling products during the holiday season in different categories such as footwear (sports and casual vs. formal and ethnic) and apparel (denims and t-shirts). ), as well as the main advantages of small and medium retailers. see using B2B e-commerce platforms.