Small businesses in Tier Z cities ahead in using eBay marketplace for export

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Only 8.8 per cent of traditional Indian firms exported to international markets, while small businesses on eBay exported to an average of 42 different countries, says India Small Online Business Trade Report. 

Among the small businesses in India, 32 per cent were “newcomers.” Tier Z cities led the way, with a 37 per cent newcomer rate, higher than in Tier X or Tier Y cities.

While 92 per cent of eBay enabled small businesses export to 10 or more markets, 93 per cent exported to four or more continents, and collectively made sales in 210 markets. 

The report is based on 2019 eBay marketplace transaction data and details how small online businesses across India use the eBay marketplace.

The top export destinations for Indian small businesses through eBay were the United States, the United Kingdom, Australia, Canada, and Germany. 

‘Newcomers’ on e-bay small businesses that had no sales on eBay in 2015 or later broke the mark of $10,000 for the first time in 2019. Among the community of eBay-enabled small businesses in India in 2019, 32 per cent were newcomers.

The top 10 states with the highest Share of eBay-Enabled Small Business Newcomers were from Bihar (67%), Himachal Pradesh (67%), Goa (50%), Jammu & Kashmir (50%), Jharkhand (50%), Karnataka (44%), Odisha (43%), Uttarakhand (40%), West Bengal (38%), and Gujarat (37%).

Small business communities in Haryana, Delhi, and Rajasthan were among the leaders, with 96, 95, and 94 per cent, respectively. Up to 93 per cent of Indian small businesses were Global Sellers, with sales to four or more continents.

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Further, the top five product categories exported by eBay-Enabled small businesses were jewellery and watches, office and industrial products, health and beauty, clothes, shoes and accessories, and home furnishings.

In Rajasthan, 39 per cent of small businesses exported products in the fashion jewellery category and 35 per cent exported products in the loose diamonds and gemstone category, 33 per cent exported home décor products, and 16 per cent exported bedding-related goods to the United States or United Kingdom.

The report found that fine jewellery is a priority export industry in Maharashtra, with 41 per cent of the sellers making sales to the United States or the United Kingdom.

In Delhi, eBay’s small business sellers are achieving export success in ayurvedic natural remedies.

The report found that bedding has a small business export focus in Madhya Pradesh, and 67 per cent of eBay-enabled small businesses in the state are serving the United States or United Kingdom export markets.

In Gujarat, 42 per cent of eBay-enabled small businesses export fine jewellery items. Nearly a quarter are successfully exporting products in the clothes, shoes and accessories categories.