The Growing Market for MSME Trade, Import, and Export
Introduction
The realm of trade, import, and export for Micro, Small, and Medium Enterprises (MSMEs) is expanding rapidly. In a recent report by e-commerce giant eBay, it was revealed that India ranks as the fifth largest market for the company in terms of small businesses selling as newcomers. The report highlights the significant growth potential for Indian MSMEs in tapping into online marketplaces to reach a global customer base.
India’s Rise in E-commerce
According to eBay’s Global Inclusive Small Business Online Commerce Report, India boasts a newcomer rate of 58%, trailing behind countries such as Morocco with a 98% newcomer rate, Israel with 68%, Japan with 62%, and Malaysia with 60%. This data signifies that a considerable portion of businesses in India are leveraging platforms like eBay to expand their customer reach and venture into international markets.
Commenting on the findings, Pavan Ponnappa, Head of Categories, Acquisition, and Marketing at eBay India – Cross Border Trade, stated, “India’s newcomer rate of 58 percent means that a notable segment of businesses in India are taking advantage of online marketplaces such as eBay to expand their customer bases and gain access to international markets.”
eBay’s Criteria for Newcomer Classification
In order to be classified as a newcomer in the market, eBay considers small businesses that meet two criteria:
- The business should have a sales level of at least $10,000 in 2020.
- The business should have been selling on the platform for no more than four years, with no sales on eBay between 2016 and 2020.
By setting these parameters, eBay ensures that small businesses with limited experience on the platform are recognized for their growth and success in a relatively short span of time.
eBay’s Influence on Indian MSMEs
With over 1 lakh registered sellers in India, eBay has established itself as a prominent player in the e-commerce landscape of the country. The company’s India business, launched in 2005, was subsequently acquired by Walmart-owned Flipkart in April 2017. This acquisition paved the way for collaboration and joint pursuit of cross-border trade opportunities between the two companies. Additionally, eBay made a staggering $500 million cash investment in Flipkart, reinforcing its commitment to the growth and development of Indian MSMEs.
The Role of eBay in Export Opportunities
eBay’s comprehensive report sheds light on the importance of a level playing field marketplace that breaks the traditional link between company size and success in exporting. The report’s data is derived from eBay marketplace transactions across 18 markets globally during the pandemic year of 2020, providing a clear and accurate view of the platform’s impact. The insights garnered from this data highlight eBay’s role in empowering small businesses by granting them access to international markets and customer bases.
Enhancing Shipping Efforts with Advanced Logistics Technologies
In its endeavor to facilitate seamless global trade, eBay currently operates its one-stop shipping solution called Global Shipping. This solution is backed by logistics service providers and ensures secure and traceable shipments for cross-border business sellers. eBay plans to integrate “advanced logistics technologies” into the solution in the near future. These advancements will offer enhanced tracking, security, and customs clearance services, providing sellers with a new level of ease and simplicity in their shipping efforts.
Global Xpansion Program and Market Entry Support
In a bid to help Indian brands, aggregators, exporters, and manufacturers enter international markets, eBay launched the Global Xpansion Program. This program provides market insights, merchandise support, seller tools, global shipping services, and expert mentorship. These resources help Indian MSMEs overcome barriers and seize opportunities in various international markets.
Conclusion
The Global Inclusive Small Business Online Commerce Report by eBay underscores the substantial growth potential for Indian MSMEs in the trade, import, and export sectors. With a newcomer rate of 58%, India ranks among the top markets for eBay, showcasing the success of small businesses in leveraging online platforms for global expansion. eBay’s initiatives, such as the Global Xpansion Program and advanced logistics technologies, further empower MSMEs by providing the necessary support and tools to thrive in international markets.
In the rapidly evolving business landscape, it is crucial for Indian MSMEs to embrace digital platforms like eBay and tap into the wide array of opportunities available. By doing so, these businesses can not only expand their customer bases but also contribute significantly to the growth of the Indian economy.
Unlocking the Potential of MSME Trade through Online Marketplaces
Introduction
While the eBay report sheds light on the growth of MSMEs in India’s e-commerce sector, it is essential to delve deeper into the opportunities and challenges faced by these small businesses in the trade, import, and export landscape. By exploring related concepts and sharing practical examples, we can gain a deeper understanding of how MSMEs can leverage online marketplaces to their advantage.
Tapping into Global Markets
Online marketplaces provide MSMEs with a unique opportunity to expand their customer bases and reach international markets. By creating online storefronts, these businesses can showcase their products or services to a global audience, eliminating the geographical limitations that traditional brick-and-mortar stores face. Moreover, platforms like eBay offer robust logistics support, making it easier for MSMEs to fulfill international orders and deliver products to customers worldwide.
The Power of Digital Marketing
One of the crucial aspects of success in online marketplaces is effective digital marketing. MSMEs need to develop a strong online presence and utilize various digital marketing techniques to attract potential customers. Strategies such as search engine optimization (SEO), social media marketing, and content marketing can significantly enhance visibility and drive traffic to MSMEs’ online stores. By investing in digital marketing efforts, MSMEs can increase their chances of success in the digital landscape.
Building Trust and Credibility
In the online realm, trust and credibility play a vital role in attracting and retaining customers. MSMEs should focus on building a strong brand reputation by providing high-quality products, exceptional customer service, and secure payment gateways. Customer reviews and testimonials also serve as powerful social proof, instilling confidence in potential buyers and encouraging them to make purchases from MSMEs. Building trust and credibility is a continuous process that requires consistent effort and delivering on promises made to customers.
Strategic Partnerships and Collaborations
MSMEs can further strengthen their market presence by forging strategic partnerships and collaborations. These partnerships can involve other MSMEs operating in complementary sectors or even larger enterprises that can provide mentorship, guidance, and market access. By joining forces, MSMEs can pool resources, share knowledge, and explore new avenues for growth. Collaborations also allow MSMEs to mitigate risks and overcome challenges collectively, ultimately positioning them as stronger players in the competitive market.
Leveraging Data Analytics and Business Intelligence
Data analytics and business intelligence can offer valuable insights into consumer behavior, market trends, and demand patterns. MSMEs can gather and analyze data related to their target markets, customer preferences, and competitor strategies to make informed business decisions. By harnessing the power of data, MSMEs can identify new market opportunities, optimize pricing strategies, and improve their overall competitiveness in the industry. Investing in data analytics tools and expertise can be a game-changer for MSMEs seeking to thrive in the digital marketplace.
Conclusion
As the e-commerce landscape continues to evolve, MSMEs must adapt and leverage online marketplaces to unlock their full potential in the trade, import, and export sectors. By embracing digital platforms, adopting effective marketing strategies, building trust and credibility, forging strategic partnerships, and leveraging data analytics, MSMEs can position themselves as key players in the global market. The success of Indian MSMEs in platforms like eBay demonstrates that the future holds immense possibilities for these small businesses, and with the right approach and support, they can achieve remarkable growth and contribute to the economy.
Summary
The recent report by eBay highlights India’s growing importance in the trade, import, and export sector, with a newcomer rate of 58%. Indian MSMEs are leveraging online marketplaces like eBay to expand their customer bases and access international markets. eBay’s role in empowering these businesses is evident through initiatives such as the Global Xpansion Program and advanced logistics technologies. To thrive in the digital marketplace, MSMEs need to tap into global markets, utilize effective digital marketing strategies, build trust and credibility, establish strategic partnerships, and leverage data analytics. By embracing these strategies, Indian MSMEs can unlock their full potential and contribute significantly to the nation’s economy.
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Trade, import and export for MSMEs: India is the fifth largest market for e-commerce company eBay based on the proportion of small businesses selling to the market as ‘newcomers’, according to a new report from the company. With a 58% newcomer rate, India ranked after Morocco with a 98% newcomer rate, Israel (68%), Japan (62%) and Malaysia (60%). More than half of the small businesses on eBay, in nine of its 18 marketplaces, were newcomers in 2020, according to the Global Inclusive Small Business Online Commerce Report.
eBay said it considers a small business new to the market if it meets the $10,000 sales level requirement in 2020 and has been selling on the platform for no more than four years. In other words, the business should not have had any sales on eBay during the period from 2016 to 2020 and must have exceeded the $10,000 sales threshold in 2020.
“India’s newcomer rate of 58 percent means that a notable segment of businesses in India are taking advantage of online marketplaces such as eBay to expand their customer bases and gain access to international markets,” Pavan Ponnappa , Head of Categories, Acquisition and Marketing at eBay India. Cross Border Trade told FE Aspire.
Also Read: Amazon India Streamlines Onboarding Process, Making It Easier For Sellers To Sell Online
The company reportedly has more than 1 lakh registered sellers in India.
Launched in 2005 in India, eBay’s India business was acquired by Walmart-owned Walmart. flipkart in April 2017 and operated as an independent entity. The two companies had also signed an agreement to jointly pursue cross-border trade opportunities. In exchange for a shareholding in flipkart
Importantly, eBay’s latest report was based on data covering eBay marketplace transactions during the 2020 pandemic year in 18 markets globally rather than more recent data.
“Given the comprehensive nature of the report, spanning multiple markets, it provides a clear and accurate view of how eBay’s level playing field marketplace is breaking the traditional link between company size and the ability to be a successful exporter.” Ponnappa said in the 2020 data reference for the study.
eBay currently runs its one-stop shipping solution Global Shipping backed by logistics service providers for its cross-border business sellers. The company said that in the near future it will integrate “advanced logistics technologies” into the solution to offer tracking, security and customs clearance services. Additionally, “With the assurance of secure and traceable shipments, sellers can effortlessly expand their customer base globally, experiencing a new level of ease and simplicity in their shipping efforts,” said Ponnappa.
The company also launched the Global Xpansion Program last year for Indian brands, aggregators, exporters and manufacturers to help them enter the market, provide them with market insights along with merchandise support, seller tools, global shipping services, expert mentorship and further. to reach international markets.
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