e-commerce
Indian SMEs believe growth in e-commerce will continue post-Covid: FedEx Survey
NEW DELHI: FedEx Express has shared the findings of a recent small and medium enterprise (SME)-focused survey in India to identify trends in e-commerce and digital adoption among SMEs during the Covid2019 pandemic.
The survey reveals a sense of optimism among SMEs in India, largely driven by the growth in e-commerce sales, with 30 per cent of small businesses and 40 per cent of medium businesses seeing a rise in online sales since lockdown began.
The pandemic and its resulting restrictions have led to a shift in consumer behavior towards e-commerce, with 35 per cent of small businesses and 54 per cent of medium businesses surveyed believing that e-commerce sales will improve their financial growth following Covid2019.
The festive season was a highlight for the sector, with SMEs enhancing their e-commerce capabilities and rethinking their online shopping strategies in anticipation of significant sales. 34 per cent of surveyed SMEs expect strong peak season demand. This matches the findings published by Redseer, which stated that peak season sales in India are expected to almost double this year, reaching $7 billion in gross merchandise value compared to $3.8 billion in the same period last year.
With the expected continued rise in e-commerce sales, 80 per cent of medium and 58 per cent of small businesses in the survey also believe that increased buying behavior on e-commerce platforms will continue following the pandemic.
SMEs are also embracing digital solutions, with 76 per cent of small businesses and 60 per cent of medium businesses stating that they are seeing a rise in digital payments received since the start of the pandemic. Digital wallets are also seeing greater adoption, with higher rates among small businesses (28 per cent) than medium businesses (7 per cent).
The value of fast and secure shipping is also a consideration for both shoppers and the businesses selling online. The survey highlighted that 41 per cent of SMEs believe that their customers would pay more for faster delivery, making the choice of the right logistics service provider with the ability to support business growth driven by time-sensitive shipments a priority for businesses.
FedEx Express India VP – operations Mohamad Sayegh said, “Throughout Covid2019, we have seen that consumers are increasingly shopping from home, and with continued travel limitations and efforts to control the spread of the virus likely to prevent people from visiting family and friends this festive season, more gifts are likely to be shipped this year, rather than delivered in person.”
“With the expected continued surge in e-commerce sales, FedEx has been working with businesses to encourage their customers to shop and ship early. We are confident our global and domestic networks will support the demands of each business and their customers,” he added.
The FedEx-commissioned survey was conducted by the independent research firm Dun & Bradstreet India.
e-commerce
Flipkart rolls out 105 per cent bonus for 20,000 employees
Strong FY25 performance drives payouts even as layoffs and shifts unfold.
MUMBAI: In a year where belts were tightened and rewards loosened, Flipkart seems to be playing both offence and defence trimming roles on one hand while handing out a generous 105 per cent bonus on the other. The Walmart owned e commerce major has rolled out a 105 per cent bonus payout for 2025, covering nearly 20,000 employees, signalling a year of steady operational momentum even as the company navigates restructuring pressures. The payout, communicated internally by chief human resources officer Seema Nair, is tied to performance across key metrics including growth, operational efficiency, financial outcomes and people indicators, a combination that suggests the company is inching closer to its long stated goal of sustainable profitability.
Employees at SD level and below are set to receive their bonuses in March, while payouts for senior leadership, including vice presidents and senior vice presidents, will follow after the close of the performance cycle. The elevated 105 per cent multiplier stands out in a sector where cautious payouts have increasingly become the norm, pointing to what appears to be a relatively strong internal scorecard for FY25.
Yet, the announcement arrives with a noticeable contrast. Earlier this year, Flipkart reduced its workforce by around 300 roles as part of its annual performance review process. While officially framed as performance driven, the juxtaposition of layoffs alongside above target bonuses reflects a more nuanced balancing act, one that prioritises cost discipline while continuing to reward and retain high performing talent.
This dual approach is becoming increasingly common across the technology and e commerce landscape, where companies are navigating an uneven hiring environment while under pressure to deliver profitability. Rewarding top contributors, even amid selective workforce reductions, allows firms to maintain morale and retain critical talent without losing sight of financial prudence.
At the same time, Flipkart is also undergoing leadership shifts that hint at a broader strategic recalibration. Nishant Verman has been appointed senior vice president for corporate development and partnerships, while group chief financial officer Sriram Venkataraman is set to step down. Ravi Iyer will take on expanded responsibilities within the finance function, marking a reshuffle at the top as the company gears up for its next phase.
These changes come amid reports that Flipkart is planning to shift its holding structure back to India, a move widely interpreted as groundwork for a potential public listing. While timelines remain fluid, the combination of stronger financial discipline, leadership restructuring and employee incentivisation suggests a company preparing itself for greater scrutiny and scale.
For employees, the 105 per cent payout offers a welcome boost in what has otherwise been a period of adjustment. For Flipkart, it is a signal that even as it cuts where necessary, it is willing to spend where it counts. In the high stakes game of growth versus profitability, the company appears to be hedging its bets carefully, rewarding performance while reshaping itself for what could be its most defining chapter yet.
