Both domestic & retail export entrepreneurs are excited about mobile commerce & are keen to leverage it

eBay India, the eCommerce marketplace, shared key findings on Indian businesses engaged in eCommerce at an event in Delhi. Mr. Latif Nathani, Managing Director, eBay India and Mr. Anil Bhardwaj, Secretary General, Federation of Indian Micro and Small & Medium Enterprises (FISME) jointly unveiled the first eBay India Online Business Index report.

The report 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. Speaking on the occasion, Mr. 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."

Echoing the sentiment, 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."

Key findings of the eBay Online Business Index

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 of 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%).

eCommerce as the most 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.

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 demands of their logistic partners. Both domestic (53%) and retail export (46%) entrepreneurs demand more competitive shipping rates from logistic partners.

Government asks: While eBay entrepreneurs are excited about the growth & potential of eCommerce, they also have some asks of the government both at the centre & 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. To get many such interesting insights on domestic & export sales, please visit the microsite www.ebay.in/onlinebusinessindex