GLOBAL SELLING BLOG

What is e-commerce exports: Advantages and steps to start exporting

E-commerce exports is the process of selling goods or services online in global marketplaces. Read this guide to learn more about starting an e-commerce exports business.

E-commerce has transformed the way businesses operate, opening up a world of opportunities for Indian exporters. Online selling allows exporters to reach global markets, showcase products to diverse customers, and leverage digital tools for marketing and supply chain efficiency. With growing consumer preference for online shopping, the potential for e-commerce exports is immense. This blog covers key aspects of e-commerce exports, including its pros and cons, emerging trends, top products and destinations, and necessary documentation.

What is e-commerce exports?

E-commerce exports refers to the process of selling goods across borders through online e-commerce platforms. This enables sellers to reach international customers directly, without the need for physical stores or extensive distribution networks. By listing products on global e-commerce marketplaces, sellers can showcase their offerings to international buyers, attract new customers, and facilitate cross-border sales — without the need for a physical setup. For aspiring entrepreneurs and growing businesses, e-commerce exports can be a profitable and scalable model for global expansion and increased revenue.

Seller success story

Mohit and Rahul Yadav, founders of Minimalist, successfully expanded their beauty and personal care brand globally with e-commerce export program Amazon Global Selling. “FBA has been an instrumental lever for our geographic expansion plans. It’s convenient and cost-effective, and offers industry-leading delivery times. It’s a win-win program for any seller,” Yadav said. Within three years, the brand expanded to the US, the UK, Saudi Arabia, Singapore, and Australia.

Emerging e-commerce exports trends in India

E-commerce exports from India have experienced significant growth in recent years, currently estimated at $4 to $5 billion. The government aims to increase this figure exponentially, targeting $200 to $300 billion by 2030 as part of their broader goal to achieve $1 trillion in merchandise exports by 2030. ¹

Several government initiatives such as the Digital India program have fueled this growth by making online payments easier and simplifying customer verification. Additionally, the Foreign Trade Policy 2023 included a dedicated chapter on e-commerce exports for the first time, establishing guidelines to facilitate cross-border sales via e-commerce for Indian businesses.

Advantages of exporting through e-commerce

1. Lower set-up costs

Imagine the cost of setting up a physical store in every country you want to export to, along with the cost of storing and managing inventory, establishing operations, etc. With e-commerce exports, you can bypass these expenses and expand your business with minimal investment, while saving on installation and maintenance costs.

2. Access to multiple new marketplaces

A physical store limits sellers to a minimum customer base. In contrast, e-commerce exports allow sellers to reach customers in several countries simultaneously from the comfort of their homes in India, significantly expanding their market reach.

The growth for 'A Jaald Store' has been phenomenal, and we continue to evolve as a brand. We are excited to explore several new markets in many more countries with Amazon in the future.
Hussain GuranaFounder of 'A Jaald Store'

3. Direct access to consumers

E-commerce businesses can directly reach customers without middlemen. A key benefit of exporting via e-commerce is the ability to connect with international customers directly, enabling brands and customers to learn more about each other and build lasting relationships.

4. Easy and cost-effective marketing

With e-commerce, businesses can avoid costly billboard or TV ad campaigns. Instead, sellers can use digital marketing tools on international marketplaces to tailor their brand and marketing to fit their customers’ needs or offer discounts and promotions.

5. Ease of delivery

Customers want their purchases delivered intact and on time. E-commerce export programs provide tools and solutions for logistics, such as Fulfillment by Amazon (FBA), that helps sellers fulfil global orders easily.

Learn more about FBA here

Top countries for starting e-commerce exports business from India

Choosing the right markets is crucial when you want to export goods online. Indian sellers have excellent opportunities in several countries. Some of these are as follows:

● United States of America
● United Kingdom
● Canada
● Germany
● France
● Italy
● Spain
● Mexico ²

Above data is for Indian exporters on Amazon Global Selling in 2023

Top e-commerce products to export from India

India's diverse manufacturing base and rich cultural heritage offer a wide range of products that are in high demand globally. Some of the top e-commerce products to export from India include:

● Beauty

The demand for cosmetics and beauty products is growing, with organic and herbal items gaining popularity all over the world.

● Apparel

India's versatile textiles, including ethnic wear like sarees and kurtas as well as elegant formal and casual wear, have caught the attention of global consumers seeking fashionable wear.

● Health and personal care

India's health and personal care products, like herbal remedies and organic wellness products, are becoming popular around the world.³

● Home

Home accessories, especially those that are hand-woven, are preferred by international customers as they incorporate Indian art.

● Toys

Many parents are looking for innovative and safe products for their kids to enjoy. India’s toys, such as hand-crafted and traditional options, are engaging buyers all over the world.

Government initiatives to boost e-commerce exports from India

The Government of India recognizes the potential of e-commerce exports in driving economic growth and has implemented several schemes, policies, and initiatives to promote the sector, particularly for MSMEs. Some of these are as follows:

• Foreign Trade Policy 2023: Introduces dedicated e-commerce export hubs that offer warehousing, customs clearance, and returns processing support, making export management easier for e-commerce businesses. It also extends FTP benefits to e-commerce exporters and raises the courier export value limit to INR 10 lakh.

• Districts as Export Hubs Initiative: Aims to transform Indian districts into specialized export centers, boosting export opportunities for MSMEs and encouraging their participation in international trade.

• Remission of Duties and Taxes on Export Products (RoDTEP): Provides refunds for taxes on exported goods, helping to reduce costs for exporters.

• Market Access Initiative (MAI): Offers financial aid for marketing and digital services, assisting businesses in promoting their products in international markets.

• Indian Customs Electronic Gateway (ICEGATE): An online portal that provides e-filing services to simplify logistics and compliance for Indian e-commerce exporters.

Documents required to start e-commerce exports business

Starting an e-commerce export business from India requires several key documents to ensure compliance with both domestic and international regulations. Some key documents include:

Importer Exporter Code (IEC)

The IEC Code is a 10-digit business identification number allotted to an importer or exporter by the Directorate General of Foreign Trade (DGFT). It is compulsory for all businesses that are involved in export or import business.

Authorized Dealer Code

An Authorized Dealer (AD) Code is a 14-digit code, which is given by the bank where the exporter maintains a business current account. This code, printed with the bank letterhead, can be obtained after the exporter has registered for an IEC with the DGFT.

Letter of Undertaking

GST Letter of Undertaking (LUT) is a document filed to export products without paying IGST (Integrated Goods and Services Tax). Exporters can generate an LUT on the GST portal and avail the benefits of zero-rated turnover.

Importer of Record

An Importer of Record (IOR) is an individual or entity responsible for all documentation related to the import of goods into a country. An IOR is responsible for ensuring inspection and valuation of goods, and filing duties, taxes and other relevant documents.⁴

Depending on the product category and destination country, various other documents and licenses may be necessary for exports. Additionally, exporters must prepare shipping and customs documentation, which consists of a commercial invoice, packing list, bill of lading, and export declaration form, to facilitate smooth international trade operations.⁵

Get assistance with documentation and compliance on Export Navigator

How to start an e-commerce export business from India with Amazon Global Selling?

Amazon Global Selling is an e-commerce exports program that helps Indian exporters reach customers worldwide through Amazon’s international websites and marketplaces. Here’s how you can get started on Amazon Global Selling:

Step 1: Research your business idea and expansion plan

To start selling on Amazon's global marketplaces, create an Amazon seller account on Seller Central. The registration process takes only 15 minutes. You'll need to provide ID proof, address proof, and a credit or debit card that is enabled for international transactions.

Step 2: List your products

After registering, you can list your products on Amazon's international marketplaces. Use the latest tools and expert support to enhance the visibility of your listings to customers.

Step 3: Ship and fulfil orders

You can either manage your own logistics using the Merchant Fulfilled Network (MFN) or receive expert assistance from Amazon with Fulfillment by Amazon (FBA), which handles storage, packing, shipping, and international delivery for you.

Step 4: Receive payments

Receive payments in INR directly in your bank account, and leverage tools like Brand Registry and Advertising to effectively boost your brand’s visibility.⁶

Frequently Asked Questions

Which item is most exported from India?

According to Exports Digest 2024, the top product categories for exporters on Amazon Global Selling exporters in 2023 were home, apparel, beauty, health and personal care, and toys.

What is the export potential of e-commerce in India?

India's e-commerce export sector is rapidly growing, with projections indicating that the sector could touch $200-300 billion by 2030. With favorable government policies, an enabling ecosystem, and growing global demand for ‘Made in India’ products, this sector has the potential to grow rapidly in coming years.⁷

What is the size of India's e-commerce exports market?

Currently, e-commerce exports from India are at an estimated $4-5 billion, with projections indicating that the sector could touch $200-300 billion by 2030.⁸

How to export from India in an easy way?

E-commerce export platforms like Amazon Global Selling offer a suite of tools and services to empower Indian exporters to sell on global marketplaces in a seamless and cost-effective manner. Register on Amazon Global Selling, list your products, and ship and deliver to hundreds of millions of customers across 18+ Amazon global marketplaces.

Published on October 25, 2021.

Sources:
1. https://www.ey.com/en_in/news/2024/07/addressing-customs-payment-and-logistics-challenges-key-to-stronger-e-commerce-exports-growth-from-india-ey-assocham-report
2. https://sell.amazon.in/grow-your-business/amazon-global-selling/exports-digest
3. https://sell.amazon.in/grow-your-business/amazon-global-selling/exports-digest
4. https://sell.amazon.in/grow-your-business/amazon-global-selling/export-documentation
5. https://content.dgft.gov.in/Website/HTE.pdf
6. https://sell.amazon.in/grow-your-business/amazon-global-selling/exports
7. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1912572
8. https://assets.ey.com/content/dam/ey-sites/ey-com/en_in/news/2024/07/ey-enabling-e-commerce-exports-from-india.pdf

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