India Ranks as the 5th Largest Market for Newcomer Small Businesses on eBay: Report

India's Growing Presence as a Market for Newcomer Small Businesses on eBay

A new report by eBay highlights India's prominence as a major market for small businesses on its e-commerce platform. The report reveals that India ranks as the fifth largest market in terms of the proportion of small businesses classified as 'newcomers' on eBay.

With a newcomer rate of 58%, India follows countries like Morocco (98%), Israel (68%), Japan (62%), and Malaysia (60%). This data underscores the significant presence of Indian businesses on the platform and their active participation in the global e-commerce landscape.

Leveraging Online Marketplaces for International Expansion

Pavan Ponnappa, Head Categories, Acquisition & Marketing at eBay India Cross Border Trade, expressed that India's newcomer rate of 58% signifies the strong adoption of online marketplaces, including eBay, by Indian businesses to expand their customer bases and venture into international markets.

The report highlights the role of eBay as a facilitator for small businesses in India to access global markets and gain exposure to a wider customer base.

The report defines a small business as a newcomer on the eBay marketplace if it meets the sales level requirement of $10,000 in 2020 and has been selling on the platform for no longer than four years. I

n other words, the business should not have recorded any sales on eBay between 2016 and 2020 but exceeded the sales threshold of $10,000 in 2020.

eBay's Impact on Small Businesses in India

eBay, which boasts over 1 lakh registered sellers in India, has played a significant role in fostering the growth of small businesses in the country. The platform's India business was launched in 2005 and later acquired by Flipkart, a subsidiary of Walmart, in April 2017.

As part of the acquisition agreement, eBay made a $500 million cash investment in Flipkart and gained an equity stake in the company. eBay's early investments in Indian e-commerce, including Flipkart's competitor Snapdeal, further highlight its commitment to the Indian market.

eBay's Future Initiatives and Global Shipping Solutions

eBay continues to focus on enhancing its services for cross-border trade sellers. The company currently operates its Global Shipping single-window shipment solution with the support of logistic service providers. In the near future, eBay plans to integrate advanced logistics technologies into the solution, offering tracking, security, and customs clearance services.

Pavan Ponnappa stated that with secure and traceable shipments, sellers can effortlessly expand their customer base globally, providing them with a new level of ease and simplicity in their shipping operations.

Moreover, eBay launched the Global Xpansion Programme in India last year, aiming to assist Indian brands, aggregators, exporters, and manufacturers in accessing the global marketplace. The program provides market insights, merchandise support, seller tools, global shipping services, expert mentoring, and more, empowering Indian businesses to reach international markets.

Here are some additional relevant and latest facts about the news:

• The report was published in April 2022.

• eBay has over 1 lakh registered sellers in India.

• The company's Global Shipping solution is available in over 100 countries.

• The Global Xpansion Programme is currently available in India, the United States, the United Kingdom, Germany, and France.

Conclusion

The report by eBay showcases India's strong position as the fifth largest market for newcomer small businesses on its platform. With a high newcomer rate, Indian businesses are actively leveraging online marketplaces like eBay to expand their customer bases and gain access to international markets.

eBay's commitment to supporting small businesses is evident through its comprehensive initiatives, such as the Global Xpansion Programme and ongoing efforts to enhance its global shipping solutions. As Indian businesses continue to thrive in the e-commerce space, eBay remains a valuable platform for their growth and success.