Tapping Into New Markets With MSME Exports & Online Sales

Did you know that firms of all sizes can now compete on a global scale? There are a lot of opportunities for small and medium-sized businesses (SMEs) in international trade. Most SMEs require participation in foreign B2C marketplaces due to domestic market saturation and reliance on a small number of critical business accounts. Expanding internationally is also a source of pride for small and medium-sized enterprises (SMEs). Knowing how prepared a company is to do business on a global scale is essential before embarking on an international expansion strategy.

Increased opportunities and a more realistic view of future growth in international markets are the results of intensifying global competition. Eventually, businesses become more competitive as a result of the knowledge and experience they get from their forays abroad. Also, diversifying into the expense and revenue structures of MSME exports helps spread the risks associated with expanding into international markets. Let us discuss the strategies MSMEs should follow to penetrate new markets via eCommerce and export.

Learn How E-commerce is Empowering MSMEs to Expand Exports

India was able to increase its position in global commerce by crossing the 400 billion dollar export mark during the FY 2021-22. This occurred as the country’s millions of micro, small, and medium-sized enterprises (MSMEs) were gradually returning after the Covid crisis. E-commerce exports have become vital for MSME exporters seeking an affordable route to worldwide markets. Furthermore, this was in addition to the challenges that had previously prevented MSMEs from fully realizing their export potentials, such as difficulties in the investments, supply chain, cross-border payments, demand unpredictability and technology.

Businesses from many other countries will dominate the global market if Indian SMEs don’t start exporting. Of the 200 nations in the world, selecting the proper one to export to is the biggest challenge for any MSME. Once that’s settled, you can start thinking about product branding and marketing. And then what? The distribution will be the next big obstacle. In order to overcome these obstacles and reach a wider audience, MSMEs often rely on intermediaries like export trading and have a physical presence in their target market. However, e-commerce exports eliminate the need for it. The four major problems with exports that can be addressed through e-commerce are:

Accessing the market

Accessing the market requires substantial up-front investment due to the prevalence of trade fair participation in business-to-business (B2B) exports. Amazon’s initial goal was to find a way to automate the storefront creation process using technology. According to Kamra, an Indian exporter can reach buyers in over two hundred countries through Amazon’s sixteen marketplaces underlining the value of digital direct access to clients that e-commerce platforms offer. In order to facilitate international trade, Amazon now operates a Global Selling initiative in India. The number of vendors using Amazon’s overseas marketplaces has reportedly reached over 70,000.

Market insights

Amazon has spent the past year developing a massive machine-learning engine to process all the data generated. It provided exporters with the most up-to-date information on export opportunities for MSMEs and their trends and assisted them in making informed decisions regarding product development.


Kamra claims that it is difficult for a micro, small, or medium-sized enterprise (MSME) to establish an international supply chain if it creates its own identity and aims to export its products. He explained that the carrier would pick up the merchandise from the MSME’s storage facility and deliver it to clients anywhere in the world using Amazon’s logistics service, or the MSME may utilize its own facilities instead.

IP creation

Developing original intellectual property (IP) can help set a business apart and win consumers’ trust. When it comes to pricing and financial terms, Kamra says IP wins hands down. Hence, if a micro, small, or medium enterprise (MSME) sees that the cost of production is going up, they might charge more for their goods. In order to assist its sellers in gaining trademarks, combating infringement, etc., Amazon introduced an IP accelerator initiative in India last year.

An Overview of How the Export Opportunities for MSMEs Work

Manufacturing companies in India are constantly on the lookout for new international markets. Companies rely on trade organizations for information on potential markets, and those organizations often provide them with the names of importers in such nations. Such information is obtained through the experiences of Indian traders and manufacturers in specific countries. In order to measure the interest of vendors in a new market, any exporter interested in expanding into that market should begin by exhibiting their products at exhibitions or trade shows in any of those countries. Only major Indian manufacturers or merchants can afford the time and money to travel to overseas trade events. Individuals without the resources must rely on trade reports produced by the trade organization or Commerce Ministry specializing in a given product category.

The next phase is locating potential customers (importers) in the target market outside the country. This requires investigation into factors such as market size, competition, quality requirements, payment terms, etc., which are not always included in the reports. Reaching out to overseas importers can be difficult for small producers who lack the necessary insights. If agreements are reached with importers, the next step is to “deliver product samples” and pricing information to receive positive answers. However, this process is time-consuming with low odds of success, creating obstacles for domestic producers. With digital technologies, many of these steps may be streamlined for exporters, saving them time and effort.

Also Read: The Importance of Innovation for Chinese SMEs

E-commerce Export From India- All You Need to Know

Let us now analyze a situation to learn about the e-commerce export from India. Imagine a shopper is in search of Indian jewelry or artifacts, where brick-and-mortar outlets for these things may or may not exist. The shopper goes to an online store and selects the items he wants. An Indian vendor lists these items on this online marketplace. In-person transactions eliminate the need for international money transfers because the buyer can pay in his own currency. Fortunately, the products are delivered to the buyer within a few days, and the manufacturer in India receives payment directly to their account upon order fulfillment without having to deal with currency conversions, international payments, etc. International e-commerce giants are able to facilitate such borderless product sales and purchases with the help of technology-based global selling programmes.


Exports will be essential for India’s economy to thrive in the years ahead. E-commerce exports offer a simple, fast, scalable path for India’s micro, small, and medium-sized enterprises (MSMEs) and manufacturers to bring in more foreign currency. Two other top priorities are building effective yet inexpensive logistics solutions and raising awareness of e-commerce exports. These will help small and medium-sized enterprises (SMEs) and manufacturers get started on their exporting journey. And this is the point at which the new trade policy will be a powerful tool for change. Thousands of India’s micro, small, and medium-sized enterprises (MSMEs) and manufacturers will be able to seize the export chance and fuel the next chapter in India’s economic growth story.

MSMEBlog discusses issues with finding suitable funding sources for MSMEs and guides them with the procedures to acquire the necessary financing. Visit MSME Blog website for more information on MSME finance.

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