Social commerce is revolutionizing the way suppliers conduct their online business. The journey begins with establishing a strong online presence through social media platforms like Facebook, Instagram, and Pinterest. Suppliers leverage these channels to showcase their products and engage with potential customers. They then seamlessly integrate e-commerce features into their social profiles, making it easy for shoppers to browse, purchase, and share products directly from these platforms. As they progress on this journey, suppliers harness the power of user-generated content and influencer collaborations to enhance their brand visibility. This dynamic approach to online business brings products directly to where customers spend their time, creating a more engaging and convenient shopping experience.

 Social commerce has redefined the online business journey into two distinct models - the Bulk Buying/Stocking Model and the Marketplace Model. These models play a pivotal role in connecting producers, distribution partners, platform collection centers, distribution centers, and last-mile delivery to customers. Each model offers a unique approach to customer and non-customer engagement.

Bulk Buying/Stocking Model: In this model, often seen in staples and grocery sales, major platforms like Competitor A and Competitor B purchase products in bulk from suppliers and store them in their warehouses. Customer orders are fulfilled from these central warehouses, using a network of delivery hubs and last-mile delivery partners. The platform owns the inventory, allowing them to determine prices and discounts based on their economics. Suppliers typically make modest margins of 9-10% while selling in bulk to these platforms, occasionally reducing it by an additional 1-2% for very high-volume transactions. This model minimizes supplier involvement in customer engagement, placing the platform at the forefront.

Marketplace Model: Typically employed by national players dealing in FMCG products, this model differs significantly. Here, the supplier retains ownership of the inventory and lists their products on online platforms. When a customer places an order, the platform forwards the order to the supplier, who then prepares and dispatches the order. The responsibility for delivery management can vary, with local suppliers often relying on platforms for out-of-town deliveries. In contrast, national suppliers and contract manufacturers tend to manage delivery themselves. This model places a greater emphasis on supplier engagement in the customer journey while providing a broader range of products and variety to customers.

 In today's rapidly evolving business landscape, selling online presents numerous advantages over traditional offline methods. Here are some key benefits that make the shift to the digital realm a strategic move for suppliers and businesses alike.

Customer Reviews: Online selling empowers businesses with the invaluable tool of customer reviews. Customers can effortlessly rate and review both products and suppliers, providing automatic feedback on what they appreciate and what needs improvement. Positive reviews serve as a powerful form of indirect word-of-mouth marketing, enhancing supplier credibility and fueling sales growth. Harnessing customer feedback allows businesses to refine their offerings and elevate overall customer satisfaction, contributing to long-term success in the online marketplace.

Short Credit Cycles and Timely Payment: Online platforms offer a significant advantage with credit periods typically ranging from 7 to 10 days for bulk purchases and 15 to 20 days for marketplace sales. This is notably shorter compared to the traditional offline model, where credit cycles can extend from 30 to 45 days. Furthermore, online platforms exhibit a high level of diligence in making timely payments, reducing the uncertainty and financial strain often associated with offline transactions.

Paperless and Digital Onboarding: Online selling streamlines the onboarding process by eliminating paperwork. Suppliers can swiftly complete the registration process and commence online sales within a mere 3-4 days. Key documents such as purchase orders, invoices, and delivery partner details are conveniently conveyed through digital means, either via dedicated apps or email, simplifying the administrative process.

Order Tracking: Online platforms offer comprehensive order tracking, providing status updates at every stage of product delivery, be it to a warehouse or the end customer. This information is readily accessible through the platform app, ensuring transparency and efficient management. In contrast, offline processes often require manual coordination with transporters and consignees to obtain similar status updates, resulting in greater effort and potential delays.

 The COVID-19 pandemic led to a substantial 47% increase in online business presence, compared to a pre-pandemic level of 26%. This surge was driven by several key factors, each providing unique insights into the growth.

Supplier Type Influence: Diving into Supplier Type, National Suppliers demonstrated a substantial 43% boost in their online presence, with 23% before the pandemic and 20% during. Local Suppliers also flourished, experiencing a 45% increase, with 22% before the pandemic and 23% during. Contract Manufacturers stood out with an impressive 55% increase in online presence, combining 35% pre-pandemic and 20% during the pandemic.

Annual Turnover Dynamics: Annual Turnover revealed its significant impact. Suppliers with an annual turnover of less than INR 5 Cr showed a robust 53% increase in online presence, with 28% before the pandemic and 25% during. The 5-10 Cr turnover category witnessed a 49% increase, comprising 27% pre-pandemic and 22% during. Similarly, the 10-20 Cr turnover category also contributed to a 49% increase, with 29% pre-pandemic and 20% during. Suppliers with a turnover exceeding 20 Cr achieved a 39% increase in online presence, with 21% before and 18% during the pandemic.