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India 5th biggest market for ‘newcomer’ small businesses on eBay: Report

India 5th biggest market for ‘newcomer’ small businesses on eBay: Report

According to a report by eBay, India ranks as the fifth largest market for e-commerce companies based on the proportion of small businesses that are considered “newcomers” selling on the platform. The “Small Online Business Inclusive Global Trade Report” report highlights that India has a newcomer rate of 58%, indicating that many small businesses on eBay in India are new sellers.

India is preceded by Morocco, which has a newcomer rate of 98%, followed by Israel (68%), Japan (62%), and Malaysia (60%). These countries have more new businesses entering the eBay marketplace than other markets.
The report further reveals that more than half of the small businesses on eBay in nine out of the 18 markets analyzed were newcomers in 2020. This signifies a substantial influx of new sellers joining eBay’s platform, contributing to the growth and diversity of online trade.

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India’s position as the fifth largest market for eBay highlights the thriving e-commerce ecosystem in the country, with a significant number of small businesses leveraging online platforms for trade. eBay provides small and emerging businesses opportunities to establish an online presence and tap into a global customer base. The platform enables these newcomers to reach a wider audience and participate in international trade, expanding their business prospects.

The findings of this report emphasize the role of e-commerce platforms in fostering inclusive global trade, empowering small businesses to engage in cross-border transactions and access new markets. Platforms like eBay contribute to the growth and development of micro, small, and medium enterprises (MSMEs) worldwide by providing a digital marketplace and facilitating trade.

As India continues to witness a digital revolution and an increasing number of entrepreneurs and small businesses, embrace e-commerce, the opportunities for MSMEs to participate in global trade are expanding. Online platforms offer a level playing field for businesses of all sizes, allowing them to overcome geographical barriers and connect with customers across borders.

With India’s substantial newcomer rate on eBay, it is evident that the country’s small businesses are actively embracing e-commerce as a means to expand their reach and grow their enterprises. As technology continues to advance and digital platforms evolve, MSMEs in India have the potential to leverage e-commerce further to enhance their competitiveness and contribute to the global trade landscape.

According to eBay’s criteria, a small business is considered a newcomer in the marketplace if it meets two requirements. First, the company should not have recorded any sales on eBay between 2016 and 2020. This indicates that the business has recently joined the platform and has yet to previously engage in selling on eBay during that specific period. Second, the business must have exceeded the sales threshold of $10,000 in 2020. This requirement demonstrates that the business has achieved a certain level of sales volume in a single year, indicating its growth and success on the eBay platform.

By setting these criteria, eBay aims to identify and highlight small businesses that have recently joined the platform and have experienced significant sales growth within a short period. These newcomers bring fresh perspectives and contribute to eBay’s marketplace’s dynamic and diverse ecosystem.

It is important to note that eBay’s classification of “newcomer” is specific to their internal categorization for reporting purposes. The criteria mentioned provide insights into how eBay determines the newcomer rate in different markets, including India.

Pavan Ponnappa, Head Categories, Acquisition & Marketing at eBay India Cross Border Trade, stated that the newcomer rate of 58% in India indicates that a significant number of businesses in the country are utilizing online marketplaces like eBay to broaden their customer base and entering international markets. This suggests that Indian small businesses are recognizing the potential of e-commerce platforms in enabling them to expand their reach beyond traditional boundaries and tap into global opportunities.

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By leveraging online marketplaces, these businesses can overcome geographical limitations and connect with customers from around the world. E-commerce platforms provide them with a platform to showcase their products and services, access a larger customer base, and benefit from the convenience and efficiency of online trade.

For Indian small businesses, utilizing platforms like eBay offers several advantages. It allows them to reach a wide audience, including international customers, without the need for extensive physical infrastructure or geographical presence. Additionally, it provides them with tools and resources to streamline their operations, manage inventory, and facilitate secure transactions.

The increasing newcomer rate on eBay in India suggests a growing trend among small businesses to embrace e-commerce and leverage the digital marketplace to expand their business horizons. This aligns with the broader digital transformation taking place across industries, where companies are recognizing the need to adopt online channels to stay competitive and meet evolving consumer demands.

By embracing online marketplaces, Indian small businesses can harness the power of e-commerce to drive growth, enhance their visibility, and tap into the vast potential of cross-border trade. The ability to connect with customers worldwide and engage in international trade opens up new avenues for revenue generation and economic opportunities for these businesses.

According to reports, eBay has more than 1 lakh registered sellers in India. The company entered the Indian market in 2005 and operated as an independent entity until it was acquired by Flipkart, a company owned by Walmart, in April 2017. As part of the acquisition, eBay and Flipkart signed an agreement to collaborate on cross-border trade opportunities.

In addition to the acquisition, eBay made a cash investment of $500 million in Flipkart and received an equity stake in the company. This investment showcased eBay’s commitment to the Indian market and its belief in the potential for e-commerce growth in the country.

It’s worth noting that eBay had previously invested in Snapdeal, a rival e-commerce platform, in 2013 and 2014. These strategic investments demonstrate eBay’s interest in the Indian e-commerce landscape and its desire to explore various opportunities in the market.

The partnership between eBay and Flipkart aimed to leverage their respective strengths to enhance cross-border trade, provide more choices to consumers, and support sellers in expanding their reach globally. By combining eBay’s global platform and expertise with Flipkart’s strong presence in the Indian market, the collaboration sought to create synergies and drive growth in the e-commerce sector.

Overall, eBay’s presence in India through its partnership with Flipkart and its significant number of registered sellers showcases its commitment to fostering online trade and empowering Indian businesses to tap into the vast potential of e-commerce.

The report by eBay that highlighted India’s newcomer rate and its position as the fifth most significant market for the company was based on data from the year 2020. It covered transactions on the eBay marketplace during that year across 18 markets globally. Pavan Ponnappa, Head Categories, Acquisition & Marketing at eBay India Cross Border Trade, stated that the report provides a comprehensive and accurate view of how eBay’s marketplace offers equal opportunities for businesses of all sizes to become successful exporters.

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While the data may not reflect the most recent market dynamics, it still offers valuable insights into the trends and patterns observed during the pandemic year. The report underscores the significance of online marketplaces, like eBay, in enabling small businesses to expand their customer base and access international markets. It highlights the potential of e-commerce platforms in breaking traditional barriers associated with firm size and fostering a level-playing field for exporters.

It’s important to note that market conditions and trends may have evolved since 2020, especially considering the rapid growth of e-commerce and changes brought about by the pandemic. However, the report provides a snapshot of the situation during that period and highlights the positive impact that online marketplaces can have on empowering businesses, particularly smaller ones, to engage in global trade.

Moving forward, it will be interesting to see how the e-commerce landscape continues to evolve and how platforms like eBay adapt to the changing dynamics and further support the growth and success of businesses in India and around the world.

eBay is continuously working on enhancing its cross-border trade services to better support its sellers. The company currently operates its Global Shipping single-window shipment solution, which logistic service providers back. In the near future, eBay plans to integrate advanced logistics technologies into the solution. This integration offers additional features such as tracking, security, and customs clearance services, providing sellers with secure and traceable shipments. These improvements will enable sellers to expand their customer base globally and simplify their shipping processes.

Additionally, eBay launched the Global Xpansion Programme last year. This program is designed to assist Indian brands, aggregators, exporters, and manufacturers join the eBay marketplace. It offers various benefits to participants, including market insights, merchandise support, seller tools, global shipping services, expert mentoring, and more. The Global Xpansion Programme aims to equip Indian sellers with the necessary resources and knowledge to reach international markets through eBay.

By providing comprehensive support and services, including logistics solutions, market insights, and mentorship, eBay strives to empower Indian businesses to thrive in the global e-commerce landscape. The integration of advanced logistics technologies and the Global Xpansion Programme reflect eBay’s commitment to enabling sellers to leverage its platform for international growth and success.




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