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Ebay India is hoping that retailers selling products in overseas markets via online platforms will soon get exporter status.
Latif Nathani, Managing Director of Ebay India, a leading online marketplace, said this would bring them on a par with other domestic exporters in terms of tax exemptions, Customs benefits of up to $25,000, and reduced paper work, and help them deal with import regulations across different countries.
They will also get cheap and easy credit. Nathani, who joined Ebay early this year, has initiated the move and will meet officials in the Ministry of Commerce on behalf of the retailers. He is optimistic that the exporter status would be granted this fiscal, and would benefit at least 45,000 retailers from 4,306 cities and towns who are doing business with Ebay, Snapdeal, Flipkart and other marketplaces.
A marketplace platform allows third-party merchants to sell their products on its website.
“The growth of e-commerce is fabulous and we firmly believe that is the future of India both in terms of domestic market and exports,” Nathani said.
According to a survey done by the company, every 10 second one Indian seller is selling something abroad online, where he or she could target around 120 million customers in 201 countries.
This is despite the fact that the internet penetration in India is still at a mere 12 per cent compared with 98 per cent in countries such as China and South Korea.
Many of these retailers are artisans from villages such as Jalgaon in Maharashtra or Raghurajpur in Odisha and sell antiques, handicrafts, paintings, accessories, loose gemstones and diamond jewellery. Most of them are doing business through mobile phones and about 55 per cent retail exporters feel that mobile commerce is the way going forward. According to Ebay, about 23 per cent of the total revenue is coming through mobile phones.
“These artisans and sellers are contributing so much to the country’s economic growth. Hence, I feel it is our moral responsibility to help them get some recognition,” Nathani added.
Ebay India also had inked a memorandum of understanding with the Federation of Indian Export Organisations to address the issues faced by these retail exporters.
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