E-commerce can have a big impact on any trade these days, but E-commerce was initially met with resistance. E-commerce was still a controversial topic at the time. E-commerce makes it possible to even export imports without them.
E-commerce has become an integral part of any business’s operations. E-Commerce has become an integral part of modern life for most people. It would not only make life more difficult, but it would also be much more convenient.
What is E-commerce?
E-commerce (also known as Electronic commerce and Internet commerce) is the sale and purchase of goods and/or services via the internet. Data transfer and money are also involved in these transactions.
E-commerce has many effects on the export business. E-commerce can boost export by highlighting export products’ quality. However, it can also expose the ugly truth in a harsh manner that negatively affects exporters.
E-Commerce is a tool that can be used to promote any business and serve all sectors. E-commerce is used by many websites. E-commerce also helps them run more efficiently.
We are optimistic about the potential for e-commerce exports to India because of the role technology has played in changing the way business is conducted in the last few months. Indian businesses can now export their products internationally through e-commerce.
We believe that e-commerce can help make exports more accessible to lakhs of MSMEs in India.
Let’s first look at the various types of e-Commerce before we get to the topic of how E-commerce impacts export businesses. These are the six main types of Ecommerce:
Business-to-Consumer :
One of the most common sales models in E-commerce is B2C. B2C refers to a transaction between a business owner and a customer, as the name implies. This type of e-commerce could be illustrated by buying clothes online.
Business-to-Business:
B2B E-commerce is different from B2C. It involves sales between businesses. This means that there is trade between manufacturers and wholesalers. This type of commerce does not involve consumers. B2B focuses more on the repackaging and sale of products to customers.
Consumer-to-Consumer:
C2C, which is the earliest form of E-commerce, deals primarily with selling products or services between customers. UBER & OLA is the best example. It connects the car owner with those who need its services.
Customer-to-Business:
C2B is exactly the opposite of traditional E-commerce. Individual customers offer their services to business buyers. Customers may have unique products or services that are valuable to businesses. This type of E-commerce allows customers to invest their capital in products or services, but not in themselves.
Business-to-Administration:
B2A refers to transactions between businesses and administration bodies. An example of this type of commerce is filing taxes. A B2A transaction is when you fill out the online form to pay taxes. The tax is then paid to the Government through a third party.
Consumer-to-Administration:
Consumer to Administration(C2A) type of E-commerce is similar to Business to administration, the only difference being a consumer directly offers services or sells products to a Government organization.
E-Commerce can benefit every industry and every business because it is easy to promote any business and allows for immediate involvement. E-commerce has been used by many websites. Ecommerce allows them to run their businesses more effectively.
E-commerce allows small and large businesses to reach a wider audience, which in turn leads to greater profits. E-commerce has a profound impact on every business. But let’s focus on how it impacts export-import businesses.
Reaching out to global customers can be possible for small businesses
Although it can be slow for small businesses to adopt E-commerce, those who embrace it openly unlock new possibilities and opportunities. Small business owners find E-commerce particularly beneficial because it allows them to reach diverse customers around the globe and also gives them a fair chance of being successful in competition.
E-commerce is a great way to promote small businesses in India. They need to purchase items within their economic range. However, not many people are aware that there are small businesses on the local market.
Many large offline businesses are now turning to E-commerce.
Online businesses, especially small and local ones, are increasingly competing with established big businessmen. To promote their family business, they have to use E-commerce. For their expansion and growth, large businesses need to promote their business online using E-commerce.
Increased use of E-commerce platforms
A decade ago, an Indian citizen could not even dream of dressing in American fashion unless he or she visited the States. Everybody who dreams is now able to achieve it thanks to the growth of e-commerce platforms like Amazon and Alibaba.
Customers have access to a wide range of products from these Giants, and they deliver those products at home. This is one of the many reasons E-commerce Giant Marketplaces have been so successful.
India has adopted several policies to promote and protect E-commerce. The National E-commerce Policy employs a variety of strategies to encourage exports via E-commerce.
Introduction of E-commerce Policy under Logistics Policy
The Indian Government has introduced the Logistics Policy policy to encourage the growth of e-commerce. It is essential to have a physical platform where products can be collected.
This infrastructure is designed to encourage exports of Indian goods. E-commerce should be handled separately under Logistics Policy.
The Indian Government proposed to increase this limit and make Indian E-Commerce Export more attractive, even for high-value parcels that are exported via courier mode.
Policies Supporting Courier Export:
The Courier Import and Export (Clearance) Regulations 1998 state that exports are done through courier services and cost within 25 k Indian Rupees. Only courier services can be used. Exports of packages exceeding this value are made via Cargo mode. This increases the costs significantly.
The Indian Government proposed to increase this limit and make Indian E-Commerce Export more attractive, even for high-value parcels that are exported via courier mode.
International Freight Carriers
International Logistics costs are borne by the exporting body. These companies can charge large sums that might not be affordable for small businesses. This could make it difficult for small businesses to export.
Private courier companies offer end-to-end services that guarantee small businesses sustainable and uninterrupted export. Indian Post is responsible for negotiating lower freight costs with International Freight Carriers.
India’s government is working to expand and promote E-commerce. E-commerce is bound to grow in India because of its growing business and the convenience-seeking youth.
Numerous trusted Import Export Consultancy Services providers are available for your questions regarding import-export. These DGFT consultants may be of assistance to businesses or companies when it comes to exporting or importing to a country. Consulting Services help companies find the right market. They also make sure every step is smooth.