Online Markets Severely Impacting Rural, Semi-Urban Traders

Kakinada: Rise of online markets has significantly impacted local traders, particularly in rural areas. With smartphones becoming ubiquitous, even customers in villages are increasingly placing online orders for goods like readymade garments, saris, clothes and other products.

This increasing trend has exacerbated the difficulties faced by rural traders. They are struggling to compete with the variety offered by online shopping platforms. As a result, many local businesses are facing severe financial challenges. Some have even shut due to a lack of customers.

Says Y. Srinivas of Annavaram, “Online delivery boys are going to rural areas 7–8 times daily. Previously, shoppers reached shops at the nearest mandal headquarters, towns or cities. But now they are using phones to view the products, examine various varieties and prices, place their orders, and are getting deliveries. This is causing a great loss to local traders,” he explained.

Srinivas said some of the traders in Tuni town have closed their shops. But many still have hopes whenever festivals arrive. A shop owner in Annavaram sold clothes worth Rs 1–2 lakhs during the Christmas season. “But he could do business worth only Rs 7,000 this Christmas. If the Sankranthi festival does not bring him the expected sales, he will close his outlet,” Srinivas remarked.

However, some of the traders are attracting customers by offering them credit. It is said they are thus able to keep their business running.

V.N. Raju of Rajanagaram mandal said he is working from home in his village. He is placing orders online for Kirana goods and clothes, as well as medicines for his family members. Observing him, many of his neighbours are adopting the same practice.

The situation reflects the broader economic pressures caused by e-commerce, which has disrupted traditional retail businesses, especially in rural and semi-urban regions. Their customers are turning to online platforms for variety, and often lower prices. Despite their best efforts, they are unable to compete with the reach and flexibility of e-commerce.

If the current trend continues, many traders will be left with no choice but to close their operations.