E-commerce: How e-commerce unlocks global commerce for Indian businesses

Jaipur-based Divya Gems and Jewelers owner Leela Ram Bunkar had humble beginnings as a craftsman before seizing the opportunity to move her business to an e-commerce marketplace that gave her access to an audience. worldwide to present its products. Today, he is proud to serve an international clientele across continents.

Like Bunkar, millions of business owners have experienced a life-changing impact selling online. The past eighteen months have redefined its importance and accelerated the pace of its adoption. Today, e-commerce is no longer a good thing to do; it has become a business imperative to ensure continuity and growth.

COVID-19 has opened the doors to global trade in innovative ways. According to Payoneer, global e-commerce revenue grew by more than 80% in the second and third quarters of 2020, boosting online shopping across the world. The report also states that India is among the top 10 countries in terms of growth in cross-border e-commerce. Global cross-border trade is emerging as the next big growth opportunity for India’s e-commerce industry. According to Forrester Research, cross-border commerce is expected to grow at a CAGR of 17.3% by 2022. It could see its market share in the global e-commerce market increase to 22% in 2020, up from 15% previously in 2015.

Electronic democracy in electronic commerce

Over the years, the general perception has been that e-commerce is an expected marketing choice only for established retail brands. There has been a drastic change in the business strategy of local businesses that have successfully steered their operations to online platforms.

Direct-to-Consumer (D2C) brands and independent sales channels are evolving alongside e-commerce. Retail companies are getting rid of distributors and middlemen and connecting directly with consumers through e-commerce platforms. This not only allows them to reduce costs and overheads, but also to better understand their consumers’ buying habits, process product requests and directly provide customer service. By providing an improved customer experience, brands gain deeper insight into their purchasing behavior. This allows D2C brands to customize their products for different markets taking into account local cultural differences, and thus successfully diversify into different countries.

Key Factors of Cross Border Ecommerce – Unblocking Global Commerce for Indian Sellers

With the expansion of digital access, consumers today are able to connect with sellers and retailers in international markets to access a wider choice of products at competitive prices and quality.

The first key factor in cross-border e-commerce is consumer preference for the most relevant product, regardless of its source. This responds to the principle of an open market, as we saw in the case of Bunkar, whereby cross-border e-commerce gives sellers access to millions of diverse buyers.

The second factor is the ability of sellers to manage order fulfillment and complete transactions through a range of integrated logistics as well as payment in trusted open marketplaces that enable a frictionless experience. It gives immense confidence to small sellers and large retailers as well as buyers to participate in the cross-border e-commerce market, thus contributing to a vibrant bilateral market.

These marketplaces provide a level playing field for all types of sellers, not only providing integrated services, but also in-depth information on what to sell.

Last but not least, India’s evolving e-commerce ecosystem, which includes the marketplace, logistics service providers and government agencies, must work in close coordination to ensure that the competitiveness of Indian sellers matches that of other cross-border sellers in the world. whole world.

Three key elements to make the Indian seller competitive in the global market would be:

  • Simplification & digitization of export procedures to reduce delivery times
  • Offer low cost logistics solutions through India Post to be price competitive
  • Favorable policies for India-centric categories such as jewelry and ethnic clothing

As India’s exports peaked at $ 35.4 billion on July 21, the momentum bodes well for seizing the huge room for growth that exists. With strong long-term growth projections for cross-border e-commerce, it is time for Indian businesses to focus their attention on globalization.

(The writer is
Country Manager – India and South East Asia, eBay)

(The one-stop destination for MSMEs, ET RISE provides news, insights and analysis on GST, exports, finance, politics, and small business management.)

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