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Amazon Sellers with Private Labels and Sourcing in India

 Check the forecast Amazon sellers: By the year 2030, India is set to become the world’s third-largest economy and will expand at a rate of 7%. That means India will surpass four developed countries in the manufacturing sector, two of which are Germany and Japan. Amazon sellers with private label products should consider India as their source for goods. India’s economic growth matches the goals of Amazon sellers on multiple levels.

  • Amazon sellers can source their goods in India at low costs;
  • Amazon sellers can look forward to selling their products in India as the next great consumer market opens, and;
  • Business is easier when the people involved speaking the same language: English.

Amazon Sellers Lives Made Easier: English is India’s Primary Language

India is the world’s second largest English speaking country, second to only the United States. The country’s population is 1,028,737,436 and the number of English speaking citizens is estimated to be 125,344,736. While other reports show more non-native English speakers that the aforementioned number, the percent of the country’s population that speaks English is estimated to be 12% to 20%.

Parallel to having one of the world’s largest labor forces, the accessibility of the English language is perhaps the country’s most prized to Amazon sellers looking to have their products manufactured.

Amazon Sellers Benefit from India’s Massive Workforce

It is estimated that there are over 502 million people in the country’s workforce. This is only 9 million fewer workers than the total number of individuals employed in the European Union, the United States and even Indonesia combined. What’s even better is that the country’s labor force continues to grow at a very impressive rate. The Wall Street Journal reported that as many as 12 million citizens entered the country’s labor market last year.

India’s workforce has also become globally acclaimed for the specialized skills they maintain. India is becoming known for manufacturing quality products. India’s worker attrition levels are also at a five-year low. Worker satisfaction is up and attrition numbers have dipped down to 16% – the lowest that India has observed since their financial crisis back in 2009. All of these factors mean that Amazon sellers with private labels can count on a steady workforce and a workforce that tends to stay in their jobs.

Amazon Sellers Benefit from India’s “Make In India Campaign”

India is ranked as the fourth most competitive manufacturing country in the entire world according to Deloitte’s Global Manufacturing Competitiveness Index. That means the country is gaining ground very fast. It is anticipated that by 2025 that India will be second only China in terms of manufacturing. India’s Prime Minister implemented the Make In India campaign, which will correlate with manufacturing demands. The campaign will increase the contribution of manufacturing output to nearly 25% of the country’s gross domestic product within the next decade. For Amazon sellers, you have a workforce and a government that wants your private label business.

India’s massive establishment as a manufacturing center is apparent by its presence at trade events such as the Global Sources Amazon Sellers Summit and Global Sources Fashion events in Hong Kong in April 2017.

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Global Sources Fashion Products Trade Show April 2017

If projections are correct, India will experience a 10% increase in the GDP within an eight-year span. It is projected that India’s manufacturers will improve their productivity by nearly five times during this time frame. The Make in India campaign showcases the government’s commitment to placing extreme emphasis on the manufacturing sector, all the while providing the funds necessary to further develop it.

Cost of Sourcing in India for Amazon Sellers with Private Labels versus the Cost of Sourcing in China

 Amazon sellers can find solace in the fact that labor wages are significantly lower in India than they are in China. In terms of manufacturing wages, India is known to have some of the lowest labor costs in the entire world. An Amazon seller would have to pay a worker in India roughly around $4.23 (USD) per day, compared to the per hour wage of around $3.52 per hour in China. That would mean an investor would get an entire day’s work in India for only a $0.71 differential.

Michael Joyce is a contributing writer for Rosenbaum Famularo, P.C., the law firm behind AmazonSellersLawyer.com. The law firm focuses on the needs of Amazon Sellers around the world: Suspensions, Rights Owner Complaints & Intellectual Property Enforcement

This Post Has 8 Comments
  1. Hi Michael – great article thank you! Are you aware of any valid sourcing sites for India? Alibaba claims to be international, but obviously is VERY China focused.

  2. This article starts well and is informative, but doesn’t really discuss Sourcing in India. This article appears to focus only on the differential in labor rates between manufacturing in China vs. India. To help complete this article, what are some recommended distributors or websites to start sourcing products from India?

    1. From the team at Amazon Sellers Lawyer: We are constantly expanding and we have recently acquired contacts in India to help assist or clients who operate on a Global Scale. We reached out to our team in India and were referred to the following websites which have been considered similar to Alibaba.com and utilized to source products:

      1. http://www.indiamart.com
      2. http://www.tradeindia.com

  3. Good article but I would not be comfortable sourcing at +/- 50c an hour labor. Guess its the way of the world, but…

    1. Having worked and travelled around India a few times the poverty is still eye wateringly dreadful. In terms of product sourcing I used to import a lot of books and although the products were great getting reliable suppliers was very, very hard work. The roads are dreadful and i just dont think India has the same quality road infrastruscture to make sure goods arrive on time and manufactured as specified. Culturally agreeing on a price with Indian suppliers has always involved a lot of brinkmanship, bravado and sometimes outright dishonesty. This all said, a great article and I wish all success in sourcing in India

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