Chennai, Sep 23 () : eBay has now traditional companies like Nalli Silks and jewellery giant Joy Alukkas on board with the motive to export as the rupee has slid to the dollar.
Many companies in India are taking to eBay to get export orders. Domestic market being sluggish, the export market after rupee decline is seen to be lucrative. The portal has registered a 100% growth in terms of listing. The e- commerce portal charges very little for listing and instead relies on commission from sales.
Spare parts of vintage bike parts and riding gear are exported from Tamil Nadu. Royal Enfield parts are exported through a third-party trading assistant certified by eBay.
Those who want to export get relief from servicing clients at odd time due to the time zone with eBay. However, a lacuna in the custom duty causes heartburns to those who find their products returned back by the client due to product being not satisfactory. The exported product on arrival attracts custom duty as e-commerce is yet to be recognized. To avoid this, client sends a new product.
Things are changing as Industry Department is working on foreign direct investment (FDI) in e-commerce and includes e-retail. Indian e-commerce companies Myntra and Flipkart can benefit from the investment and eBay or Amazon would want to invest in Indian players.
IT body Nasscom has been consulted. US has asked India to allow FDI in e-retail. DIPP has been asked to give a policy note so that Indian PM while visiting US can take it up further.
A single brand retail store can have 100% foreign investment while it is 51% in multi-brand retail. If FDI in e-commerce is allowed, then eBay and Amazon will set shop in India. Analysts say that FDI in e-retail could not be a problem but opening up e-commerce can be done with laws to protect data.