eBay India releases 1st Online Business Index report

eBay India has released the first eBay India Online Business Index report containing the key findings related to Indian businesses engaged in eCommerce. The report was released at an event in Delhi.  It highlights eCommerce adoption trends by entrepreneurs and small & medium enterprises and covers both domestic & retail export entrepreneurs. The findings were compiled using survey responses from over 700 of eBay India's top sellers, whose annual turnover ranges from $10,000 to $4.5 million.
 
Anil Bhardwaj, Secretary General, Federation of Indian Micro and Small & Medium Enterprises (FISME) was the chief-guest of the event. Latif Nathani, Managing Director, eBay India and Anil jointly revealed the report and spoke about the growth of the ecommerce in India.
 
Key findings of the eBay Online Business Index are:
 

• Multi-Channel Strategy: The majority of both domestic & retail exports entrepreneurs on eBay (53%) only sell online. The top reason being they don't feel the need for having an offline store (57%- Domestic & 47% Retail Exports). However, some entrepreneurs follow a multichannel strategy with eBay being the major contributor of sales (Domestic 38% & Exports 44%).

 

• Profitable Channel: Savvy entrepreneurs find sales from eBay are the most profitable given the low transaction fees and that they are charged only as they successfully sell.

 

• Healthy growth rates: eBay entrepreneurs are overall seeing healthy eCommerce growth rates with over 36% of domestic sellers stating a 20% YoY growth rate & over 24% stating a 21%-40% YoY growth rate. eBay retail export entrepreneurs are also seeing healthy eCommerce growth rates with over 36% of exporters stating a 20% YoY growth rate & over 30% stating a 21%-40% YoY growth rate.

 

• Optimism: 89% of Domestic Entrepreneurs and 84% of Retail Export Entrepreneurs on eBay India are optimistic about the business outlook for the next year.

 

• Generating employment: In terms of employment opportunities, domestic sellers, on an average, employ approximately *4.8 full time staff. This number is projected to increase to *5.2 full time staff over the next year. Retail exporters, on an average, employ *5.3 full time. This is projected to increase to over 6.1 full time staff over the next year.

 

• Mobile Commerce: Both domestic (59%) & retail export entrepreneurs (55%) are excited about the potential of mobile commerce as a customer acquisition channel and are keen to leverage it to grow their business and  see it playing a very important role over the next 12 months. They plan to invest in mobile in multiple ways including leveraging eBay as a channel since it invests heavily in mobile commerce (64%).

 

• Growth enablers: Logistics is the lifeblood of eCommerce shipping parcels from the seller to the end consumer and hence they have high demands from their logistic partners. Both domestic (53%) and retail export (46%) entrepreneurs demand more competitive shipping rates from logistic partners.

 

• Government incentives : While eBay entrepreneurs are excited about the growth & potential of eCommerce, they also seek greater incentives from the government both at the Center & at the state level. About 26% Domestic Entrepreneurs seek tax benefits for eCommerce transactions and 21% Retail Exporters want recognition of online retail export transactions as exports.

 
Speaking on the occasion, Latif Nathani, Managing Director, eBay India, said, "eBay India is committed to encouraging many more Indian entrepreneurs to benefit from the large domestic & export opportunity provided by eBay's strong entrepreneurship platform & consumer base. The eBay Online Business Index is an attempt to present the pulse of the online entrepreneur and give their views a voice.”
 
Anil Bhardwaj, Secretary General, Federation of Indian Micro and Small & Medium Enterprises (FISME) said, "The internet remains unconstrained by geography and offers a big opportunity to micro, small and medium businesses to expand their reach. I strongly urge entrepreneurs to explore this medium and enjoy the multiple benefits offered through an online presence.”