Alibaba Group Holding Limited a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals which also provides electronic payment services, a shopping search engine and data-centric cloud computing services and Paytm an Indian e-commerce website headquartered in Noida, India which was launched in 2010 and is owned by One97 Communications are working towards enabling Indian sellers to source products from China at cheaper rates as well as help them with logistics and payments.
While speaking about the development, Bhushan Patil, who is heading the initiative for Paytm mentioned,
“Inventory is the third pillar of commerce, after logistics and payments, which requires optimisation in India,”
He further added,
“We expect the Indian SME’s cost to come down three times with our direct connect,””Most SMEs don’t import directly, they import from local distributors, and there may be 2-3 steps shuffling, we connect directly. We also offer bonded warehousing facilities, leveraging our tie-ups with import houses and trusted payments with our partnership with Citibank, which further reduces costs at scale.”
As per the company statement, it has identified about 25-30 Indian merchants with a credible track record to incubate under categories including home and kitchen, micro innovation including USB cookers, etc, fashion and mobile accessories and western fashion to begin the pilot. There are plans to get on board at least 10,000 merchants by the end of this year, giving them access to more than 5-million products from China.