India is the fifth largest market for ‘new’ small businesses on eBay

India is the fifth-largest market for e-commerce firm eBay in terms of the proportion of small businesses selling as “newcomers” to the market, according to a new report by the company. With a 58 percent arrival rate, India lagged behind Morocco with a 98 percent arrival rate, Israel (68 percent), Japan (62 percent) and Malaysia (60 percent). More than half of small businesses on eBay in nine of its 18 markets were newbies in 2020, according to the Small Online Business Inclusive Global Trade Report.

eBay said it considers a small business a newcomer to the market if it meets the $10,000 turnover requirement in 2020 and hasn’t sold on the platform for more than four years. In other words, the business must have had no sales on eBay between 2016 and 2020 and must have exceeded the $10,000 sales threshold in 2020.

“India’s new arrivals rate of 58 per shows that a notable proportion of businesses in India use online marketplaces like eBay to expand their customer base and gain access to international markets,” said Pavan Ponnappa, Head of Categories, Acquisition and Marketing at eBay India Cross Border Trade told FE Aspire.

The company reportedly has over 1 lakh registered sellers in India.

Founded in India in 2005, eBay’s India business was acquired by Walmart-owned Flipkart in April 2017 and operated as an independent entity. The two companies had also signed an agreement to jointly pursue cross-border trading opportunities. In exchange for an equity stake in Flipkart, eBay had also made a $500 million cash investment as part of the deal. eBay was also among the early investors in Flipkart’s rival Snapdeal in 2013 and 2014.

Importantly, eBay’s most recent report was based on data on eBay marketplace transactions in the 2020 pandemic year in 18 markets worldwide, and not on more recent data.

“Given the comprehensive nature of the report, which spans multiple markets, it provides a clear and accurate picture of how the eBay level playing field is breaking the traditional link between company size and the ability to be a successful exporter,” Ponnappa said further reference the 2020 data for the study.

eBay currently operates its single-window “Global Shipping” shipping solution, supported by logistics service providers for its cross-border trade sellers. The company said it will integrate “advanced logistics technologies” into the solution in the near future to offer tracking, security and customs clearance services. Additionally, “With the assurance of secure and traceable shipments, sellers can easily expand their customer base globally, bringing a new level of ease and simplicity to their shipping efforts,” said Ponnappa.

The company also last year launched the Global Xpansion Program for Indian brands, aggregators, exporters and manufacturers to help them get into the market and provide them with market insights, merchandise support, seller tools, global shipping services, expert mentoring and more offer to reach international markets.

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