Digital Transformation of Local Vendors: Opportunities and Challenges

Authors:

Mr. Deepanshu Chhabra

Student, Bachelor of Business Administration Amity Business School, Amity University Chhattisgarh

Dr. Ram Kumar Sahu

Assistant Professor

Amity Business School, Amity University Chhattisgarh

Abstract

The rapid expansion of digital infrastructure across India has created a transformative environment for local vendors who have traditionally operated within informal, cash-based commercial ecosystems. This research paper examines the digital transformation journey of local vendors, investigating the specific opportunities that emerging technologies present alongside the structural and behavioural challenges that impede their adoption.

The study draws on both primary and secondary data. Primary data was gathered through structured questionnaires administered to 150 respondents representing a diverse cross-section of local vendor profiles, including street traders, kirana store owners, small artisans, and neighbourhood service providers across semi-urban and urban areas.

The findings reveal that vendors who embrace digital payment systems, e-commerce platforms, and social media marketing experience measurable improvements in customer reach, revenue consistency, and operational efficiency. However, significant barriers persist, including limited digital literacy, unreliable internet connectivity, high perceived costs of technology adoption, and an absence of structured institutional support.

The study concludes that while digital transformation offers substantial commercial opportunity for local vendors, its full potential can only be realised through coordinated intervention by government agencies, technology providers, and financial institutions committed to inclusive digitalisation.