GLOBAL SELLING BLOG

Understanding e-commerce exports: Your gateway to international marketplaces

With the growing use of e-commerce, Indian sellers are keen to understand the benefits of exporting from India via online. In this blog, explore the advantages of exports and process to sell globally from India.

Selling online is undoubtedly a seamless option for Indian businesses, thanks to the minimal investment and end-to-end services provided by e-commerce programs. Even better is the ease of exporting through e-commerce where sellers can reach millions of customers across the globe in just a few clicks from their homes in India. Lower operating costs and higher profit margins have attracted many medium and small business enterprises (MSMEs) from India to explore the untapped potential in international marketplaces through e-commerce exports.

What is e-commerce exports?

E-commerce exports assists sellers to directly sell to international customers in global marketplaces, allowing them to transcend beyond national boundaries and expand abroad. With e-commerce, sellers don’t have to invest in a physical setup to reach customers. Instead, they can use attractive product listing and acquire new customers internationally with ease.

A seller who was earlier catering to a limited customer base in his region or even nationally can now set sight on the global market. Hemant Khatri, founder of Kavita Prints, is one such seller who expanded the reach of his home textile business from Jaipur to the world with e-commerce export program, Amazon Global Selling. “Before joining Amazon Global Selling, I used to supply to exporters in India. But now, with e-commerce exports, I have been successfully selling in the global markets directly,” he shares.

For aspiring entrepreneurs and growing businesses, e-commerce exports can be a very profitable model to adapt for global expansion and increased revenue. Some of the most popular brands and businesses started out small, selling just one or two products online and growing from there.

Growing exports from India

According to the Indian Chamber of Commerce, over 5 crore MSMEs in India produce over 6,000 products and account for almost half of exports from the country¹. There is no doubt about the immense potential for growth in e-commerce exports from India.

Making e-commerce exports even easier for Indian sellers are programs like Amazon Global Selling, which support businesses in expanding their horizons and selling across the world. Understanding the benefits of exporting via e-commerce, over 100,000 sellers are now successfully selling on Amazon international marketplaces.

Advantages of exports 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 like USA, UAE and Australia. Add to that the cost of managing the store, inventory and marketing. With e-commerce exports, you can avoid that and expand your business with minimal investment. Setting up a physical store or warehouse abroad can be replaced with product listing on international marketplaces. This helps sellers like you save on costs incurred in installation and maintenance– think rent, repairs, store design, inventory etc.

2. Access to multiple new marketplaces

A physical store in any given location can help sellers reach a minimum number of customers. However, one of the key benefits of exports vis e-commerce is that sellers can not just expand to one but several countries from the comfort of their homes in India. Hussain Gurana, founder of 'A Jaald Store', expanded his leather business from India to the US, Europe and the UAE with ease, thanks to e-commerce exports.

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. Acquire a new set of consumers

Thanks to the internet, e-commerce business can directly reach their customers without any middlemen in the process. Not just domestic but a key benefit of exports via e-commerce is that sellers can expand their horizons and reach customers in regions across the world like USA, UK, Canada, UAE, Australia and more. With e-commerce, building relationships with target audience is easy.

4. Easy and cost-effective marketing

With e-commerce, businesses don’t need to pay for a giant billboard or TV ad campaign to capture audience’s attention. Instead, with digital marketing tools on international marketplaces, you can tailor your brand and marketing to fit your customers’ wants and needs down to offer discounts and promotions.

5. Ease of delivery

No matter what you sell, customers want their purchases delivered intact and on time. E-commerce export programs provide tools and solutions for logistics that help sellers like Fulfillment by Amazon (FBA). From packing, storage, delivery and returns, these logistic solutions provide a hassle-free experience.

How to start an e-commerce export business?

Starting an e-commerce exports business is a big step for any seller. With the right understanding and information, the process can be easy and simple. Amazon Global Selling is an e-commerce exports program that enables sellers like you to take your business from domestic borders to customers across the globe. With over 300 million customers across the globe, businesses can reach international customers in 200+ countries and territories in 18 marketplaces like Amazon USA, UK, UAE, Australia and more. This guide will show you how to start your global business or grow an existing export business online.

Step 1: Research your business idea and expansion plan

Some of the first questions to ask yourself is where and what to sell. Once you’ve decided to expand your business globally, it is important to understand the regions you want to export to and the products you want to sell. What are you offering with your products? For instance, do you want to make high-quality kitchen essentials? Then people who enjoy cooking will be some of your best customers. Attend our monthly webinars and training sessions to learn more about e-commerce export opportunities.

Step 2: Register and list your products

A major step in your export journey is registration. Registering with Amazon Global Selling is easy and simple. You have to submit the following documents:
• ID proof (Aadhar, driving license or passport)
• Business address proof (Bank statement)
• Credit or debit card (international transactions enabled)

Once you’ve registered, you can list your products on marketplaces of your choice. Product descriptions are what customers will read to decide if your product will fit their needs. It’s important to write a thorough description telling your potential buyer everything they need to know to make an informed decision.

Step 3: International shipping: storing, delivery and returns

When you start your e-commerce exports business, you have to finalize a process to handle shipping and returns. To keep things simple, it might be best to find a space that is accessible and cost-effective to store and ship your products. You can either opt for third-party services or handle this by yourself or you can choose Fulfillment by Amazon (FBA). With this state-of-the-art logistic solution, Amazon handles packing, storing, shipping, delivery and returns on your behalf.

Frequently Asked Questions

How to export from India in an easy way?

An export business can be started from anywhere in India with Amazon Global Selling. Thanks to international logistics and state-of-the-art tools, starting and managing your Amazon export business becomes hassle-free for sellers like you. All you’ve got to do is register, list and ship.

How to obtain IEC?

IEC, which stands for Import-Export Code, is a 10-digit business identification number allotted to an importer or exporter by the Directorate General of Foreign Trade (DGFT). It is only issued based on the Permanent Account Number (PAN) of a business. IEC can be applied and registered online in a simple six-step process. The documents submitted online enable the government to check the identity of an individual or business seeking registration.

Published on October 25, 2021.

Sources:
1. https://www.indianchamber.org/sectors/msme/

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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.