Export Promotion for Indian MSMEs: Role of Amazon Global Selling & Flipkart Exports

Introduction

India’s Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in driving economic growth and employment. With over 63 million MSMEs, they contribute to nearly 40% of India’s total exports. However, traditional export barriers, including high logistics costs, lack of market access, and regulatory complexities, have limited their global reach.

To address these challenges, eCommerce export platforms like Amazon Global Selling (AGS) and Flipkart Exports provide MSMEs with easy access to international markets, reducing dependencies on traditional export channels. This blog explores their impact, data trends, policies, and future initiatives, while analyzing the pros and cons for Indian MSMEs.

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Market Trends & Data Insights

1. Growth of eCommerce Exports from India

• India’s eCommerce exports market is projected to reach $200 billion by 2030.
• Over 125,000 Indian MSMEs are selling globally through Amazon Global Selling & Flipkart Exports.
• India’s top export categories include apparel, home décor, jewelry, handicrafts, and beauty products.
• 80% of new sellers on AGS & Flipkart Exports come from Tier 2 & Tier 3 cities.
• The US, UK, UAE, Canada, and Australia are among the top markets for Indian MSME exports.

2. Government Support for eCommerce Exports

• Foreign Trade Policy (FTP) 2023 aims to increase India’s total exports to $1 trillion by 2030.
• Remission of Duties and Taxes on Exported Products (RoDTEP) supports MSMEs with tax refunds.
• ONDC (Open Network for Digital Commerce) is expected to integrate export-ready MSMEs.

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Amazon Global Selling: Expanding Global Reach

1. What is Amazon Global Selling (AGS)?

Launched in 2015, Amazon Global Selling (AGS) allows Indian MSMEs to sell their products across 18+ international Amazon marketplaces, including Amazon USA, UK, UAE, Canada, Australia, and Japan.

2. Key Features & Benefits

✅ Access to 300+ million customers worldwide. ✅ Easy onboarding process with Amazon Seller Central. ✅ Global Fulfillment by Amazon (FBA) for logistics & warehousing. ✅ Advertising & brand-building tools to increase international sales. ✅ Amazon’s Global Logistics & Compliance support for exports.

3. Success Stories

• SleepyCat, a D2C mattress brand, saw a 4X jump in exports through Amazon Global Selling.
• Kashmir Box, a handicraft seller, expanded from local sales to global revenue of $1 million+ annually.
• Snitch, an Indian fashion brand, scaled exports by 3X within a year using AGS.

4. Challenges for MSMEs on AGS

❌ High competition from international sellers. ❌ Pricing pressure due to global competition. ❌ Compliance & documentation complexities for new exporters.

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Flipkart Exports: Making Indian MSMEs Global

1. What is Flipkart Exports?

Flipkart launched its global exports program in 2021, enabling Indian MSMEs to sell on Walmart’s global marketplaces, including the US, Canada, Mexico, and Chile.

2. Key Features & Benefits

✅ Direct integration with Walmart’s global network. ✅ Seller training & support for international trade compliance. ✅ AI-driven pricing & demand analytics for better sales insights. ✅ Faster shipping through Flipkart-Walmart logistics integration.

3. Growth & Impact

• Over 25,000 MSMEs have joined Flipkart Exports since its launch.
• India’s fashion, handicrafts, and home furnishing brands have seen significant success.
• Tier 2 & Tier 3 city MSMEs dominate Flipkart’s export ecosystem.

4. Challenges for MSMEs on Flipkart Exports

❌ Limited global marketplace coverage compared to Amazon. ❌ Logistics dependency on Flipkart-Walmart network. ❌ Complex pricing adjustments for international markets.

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Future Initiatives & Policy Support

1. Strengthening eCommerce Export Policies

• Simplified tax compliance under GST for exports.
• Expansion of RoDTEP tax refunds for MSME eCommerce exports.
• Integration of MSME exporters with ONDC for better global visibility.

2. Enhancing Logistics & Infrastructure

• National Logistics Policy (NLP) aims to reduce shipping costs & improve fulfillment infrastructure.
• Government subsidies for warehousing & cross-border logistics for MSME exporters.

3. AI & Data-Driven Market Expansion

• AI-powered market trend analysis for MSME exporters.
• Automated pricing optimization for global marketplaces.

4. Expanding Payment & Banking Support for MSMEs

• Integration of RBI-backed Digital Rupee for cross-border trade.
• Faster foreign exchange settlements for MSMEs via fintech solutions.

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Pros & Cons of Amazon Global Selling & Flipkart Exports

Pros:

✅ Easy global access – No need for traditional export setups. ✅ Lower operational costs – No middlemen, direct-to-consumer (D2C) model. ✅ Scalability & brand-building – Digital-first approach for MSMEs. ✅ Government-backed incentives – Tax rebates & export benefits.

Cons:

❌ High competition from international sellers. ❌ Logistics & fulfillment costs can be high. ❌ Strict compliance & regulatory norms. ❌ Currency fluctuations affecting pricing.

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Is eCommerce Export the Future for MSMEs?

With Amazon Global Selling & Flipkart Exports, Indian MSMEs now have an unprecedented opportunity to tap into global markets. While challenges remain, the integration of government policies, AI-driven insights, and improved logistics infrastructure is making global trade more accessible and profitable for small businesses.

For MSMEs looking to expand beyond India, leveraging these platforms with the right pricing strategy, compliance knowledge, and marketing efforts can unlock exponential growth opportunities.

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Are You Ready to Take Your Business Global?

✅ Join Amazon Global Selling & Flipkart Exports today & start your global eCommerce journey!