Festive Season Critical for Small Sellers' Survival; Regulatory Changes Could Impact Millions of Digital-First Businesses

The India SME Forum today highlighted the critical importance of the upcoming festive season for millions of small sellers across India, emphasizing how any sudden regulatory changes could severely impact their business sustainability. The festive season, which typically accounts for 35-40% of annual

sales for small businesses, represents a make-or-break period for numerous MSMEs who have embraced digital commerce through platforms like Amazon, Flipkart, and Meesho. These sellers have invested significantly in inventory and logistics preparation for the seasonal surge. Another factor that  could dampen consumer spending, potentially impacting millions of sellers nationwide who depend on festive sales is uncertainty around GST slab revisions.

"Any immediate regulatory changes during this crucial period could devastate small sellers who have already committed their limited resources to festive inventory," said Vinod Kumar, President, India SME Forum. "E-commerce platforms have been instrumental in digitizing millions of small businesses, perfectly aligning with the Government's Digital India vision. We urge regulatory bodies to consider the timing of any new compliance requirements, as they could severely impact seller livelihoods during their most critical business period. It is equally important for the government to follow up on the clarion call and announce the slab so that consumers can celebrate in style."

The Forum emphasized how digital marketplaces have democratized access to nationwide markets for small sellers, enabling them to compete effectively with larger retailers. This digital transformation has been particularly vital for small town businesses, who now reach customers across India.

A business owner, Lakshya Kwatra, Founder of Luusa, shared: "The festive season represents our most critical sales period of the year. Any regulatory disruption during this period wouldn't just impact our revenue but jeopardize the livelihoods of hundreds of artisans and small manufacturers in our supply chain who depend on this seasonal surge. The success of Indian brands on the world stage has been made possible through the government's support for digital transformation and platforms like Amazon."

Another small seller, Amandeep Budhiraja, owner of JustToyz, echoed: "The festive season contributes nearly half of our annual revenue, and we've already invested months of preparation. Digital marketplaces like Amazon have allowed small businesses like mine to reach customers across India. Any sudden regulatory changes now would not only threaten our festive sales but disrupt supply and erode trust in India’s digital marketplaces, potentially setting back thousands of digital-first businesses by years.”

Key Points:
•    Festive season represents 35-40% of annual sales for small sellers
•    Over 2.5 million small businesses now sell online through marketplaces
•    Digital platforms enable 2.5x-3x growth for small town businesses
•    MSMEs have already invested in festive inventory and logistics

The India SME Forum encourages more small businesses to embrace digital opportunities while requesting regulatory bodies to ensure stable policy environment during critical business periods.