Commerce 3.0 - India Perspective

Research from eBay Inc. reveals that, as the Internet dramatically lowers barriers to cross-border trade, eBay and PayPal are empowering Indian businesses and entrepreneurs on the national and international stage.

Commissioned by eBay Inc’s Global Public Policy Lab, Commerce 3.0: Empowering Indian Businesses & Entrepreneurs shows that 98 percent of commercial Indian eBay sellers export to an average of 31 international markets, while PayPal sellers receive export proceeds from an average of 13 countries. The report was formally launched in Delhi on March 26, by Managing Director of eBay India, Latif Nathani who was accompanied by with Mr. Ajay Sahai, Director General, Federation of Indian Export Organisations and Mr. Praveen Khandelwal, General Secretary, Confederation of All India Traders.

(left to right): Mr. Praveen Khandelwal, General Secretary, Confederation of All India Traders; Mr. Ajay Sahai, Director General, Federation of Indian Export Organisations; Mr. Latif Nathani, Managing Director, eBay India

Mr. Latif Nathani, Managing Director, eBay India, said, “We, at eBay India are committed towards fostering the growth of Indian eCommerce by enabling merchants of all sizes to trade nationally and globally on a level playing field. Through this report, we aim to highlight the abundant opportunities offered by internet-enabled trade to millions of small & medium enterprises in the country. eCommerce allows small retailers to become “micromultinationals,” small businesses with global customers."

eCommerce allows small retailers to become “micromultinationals”

The findings demonstrate the astonishing pace that Internet-enabled trade in India is expanding at, with 15 percent of eBay entrepreneurs experiencing growth rates of more than 100 percent per year.

Lower online business barriers mean it’s an exciting time to be an Indian business or entrepreneur – geographic distance has little effect on trade volume and larger, traditional businesses do not dominate the market. Some of the report’s other key findings can be found in the graphic below.

The empirical study also predicted that if all international trade were conducted as efficiently as on eBay, India would experience a 67 percent increase in GDP welfare – or consumer gains – making it one of the highest in the world.

To ensure continued business and entrepreneurial success, eBay is calling for improved policies to further boost Internet-enabled trade in India.

Sassoon Grigorian, Director of Public Policy Lab, Asia-Pacific, says that key barriers remain in India, particularly for cross-border transactions. “Improving Internet connectivity is vital as only 16 percent of Indians have online access,” he said.

The report also calls for a less cash-reliant economy to ensure eCommerce continues to thrive – only 8 percent of the population has access to debit cards and 2 percent to credit cards. More simplified customs procedures and competitive shipping rates, plus the liberalization of overly strict trademark exhaustion regimes in other countries, will encourage even greater online trade.

"Opportunities for increased growth in India are significant,” says Grigorian. “Removing these barriers will benefit Indian businesses, consumers and the wider economy."

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