According to a study conducted by Technopak

The reason that customers are flocking to online products of small vendors is awareness.Dinesh Chopra can testify to that.
A puter parts operator and owner of the pany Softek Surya, Chopra's office is based in Nehru Place, one he had to deal with for more than 25 years."People just could not find my office because it is located in a congested area," he admits.But that all changed three years ago with the arrival of online portals such as Ebay, Traders, snapdeal and Flipkart that reached out to small businessmen like him.
E-boost: Dinesh Chopra left have revamped their businesses by taking it online "Before the Internet, I had to depend on retailers who would enter my shop. Today, I am attracting clients whom I have never seen."

One of the reasons for Chopra and Kapila's satisfaction with the online sphere is the number of things that it takes care off.A 24-hour customer sales team takes the order, relays it to them the next day and then once the product is ready, takes care of the shipping charges often a big headache for small retailers in India.Coming to the other side, why do big online portals bother with small businesses?Aasheesh Mediratta, CEO of Fashionandyou , says, "We work on a fixed margin model so if the vendor sells more we stand to gain. We have found that certain categories of goods which were manufactured in tier II and tier-III cities were not available in metros."He adds, "Today we have around 30 vendors working specifically in bed linen and kitchenware categories. The other area is ethnic-wear. Around 40 vendors work in this area and contribute close to 20 per cent of the ethnic-wear business."

According to a study conducted by Technopak, e-tailing in India will grow from $0.6 billion in 2012 to an estimated 76 billion in 2021, providing employment to 1.45 million people.
"Through increasing orders, e-tailing has allowed me to increase my workforce. From 10- 11 employees I now employ 41. A number of these employees are women, who work from home taking orders," Chopra says.'Best option' But is e-tailing just a passing trend? Arvind Singhal, chairman and managing director of Technopak, says, "Unlike the West, the Indian retail market is primarily made up of small Indian retailers; for whom e-tailing is the best option for several reasons.
First, logistics and inventory are almost made risk-free and second, you have a growing population unafraid to use the Internet.