Export From India to UK: Why Should eCommerce and Traditional Offline Sellers Export to UK From India in 2023 and How Can They Do It?
International shipping in eCommerce has become easier and more widely adopted than ever before. As the world gets more consumer-oriented, retailers need to find ways to maintain their profit margins and take advantage of the increasing demand. Prior to the advent of globalised eCommerce, the only companies that could really take advantage of manufacturing goods in one market and selling them in other countries were large MNCs that could bypass the various restrictions that were in place.
However, since the mainstreaming of international shipping, countries across the world have relaxed certain laws and regulations, making it simpler for even smaller businesses to set their sights on selling in international markets. Historically, one of the most prominent markets for Indian goods has been UK. In this blog, we will go over why now is the best time to export from India to UK, the paperwork that is needed and how WareIQ can help.
- Why Makes the UK an Ideal Market to Export Your Goods to?
- Why is 2023 the Best Time to Export From India to UK?
- List of Required Documents to Get Your Products Exported From India to UK
- 5 Most Common Products Exported From India to UK in 2023
- Conclusion: Introduce Your Brand to International Shipping to UK With WareIQ Global
- Export From India to UK: FAQs
Why Makes the UK an Ideal Market to Export Your Goods to?
The UK is the 4th largest eCommerce market in the world, placing it ahead of countries with much larger populations, such as India and Japan. Crucially, the industry is continually experiencing stable year-on-year growth in the country, with it expanding by 9% in 2021, compared to 18% globally. The country’s population also enjoy relatively high incomes compared to most countries in the developing world.
Additionally, eCommerce customers are no strangers to international shipping, with 82% of them having purchased at least 1 item from another country. This, combined with manufacturing goods in India for much cheaper than if it were done in the UK, contributes to sellers being able to make consistently high-profit margins on most of their products. Therefore, enterprising sellers on the lookout for lucrative opportunities to expand their business globally can export from India to UK to get the ball rolling on their aspiration for worldwide expansion.
WareIQ, an eCommerce fulfillment company, empowers online brands with a superior-tech platform to compete with Amazon like service levels by bringing their average delivery timelines from 5-10 days to 1-2 days.
Why is 2023 the Best Time to Export From India to UK?
Financially Capable Populace
It is no secret that the UK is one of the most financially successful countries in the world. The general public enjoys a very high standard of living, which gives them the ability and privilege of being able to purchase almost anything they’d want or need. Thus, if your company is able to provide a product that has shown potential to gain popularity in the UK, it could be an instant hit.
Additionally, even if you are forced to initially sell your items at competitive prices to capture a sizeable market share, the fact you will be manufacturing your goods in a country where it is cheaper to do so will give you a considerable advantage over local players in the market. The country’s larger cities like London, Manchester and Birmingham constitute a large portion of the majority of eCommerce orders
India and the UK share a large and diverse history, for better or for worse. This has contributed to the countries having very similar outlooks and laws in regard to international shipping. Regulations between the two countries are constantly being reduced, making it easier for small and medium-sized businesses to penetrate the market and gain a foothold.
However, there still are products that are subject to various limitations, so it is important to identify the specific legalities that are associated with the products you are selling.
Flexible Payment Options
In the current day and age, there are a vast number of payment options that add to the convenience of the modern world and business transactions. India has had a budding eCommerce market in recent years, resulting in the wide adoption of most major payment methods, such as debit cards, credit cards, bank transfers, UPIs and more.
Similarly, the UK is a developed country with highly efficient eCommerce infrastructure, including accepting most major payment alternatives. Since these options coincide across both countries, sending and receiving money between different parties is intuitive and simple.
Variety of Shipping Options
Because the UK and India are among the largest eCommerce markets in the world, with the latter experiencing rapid expansion, most major shipping companies and 3PLs offer varying degrees of shipping options for products exported from India to UK.
Large-scale global juggernauts such as FedEx, DHL, Aramex and more provide seamless shipping services between both countries, taking care of things like customs clearance, documentation and other important processes. There are also many 3PL fulfillment companies, like WareIQ, that have increasingly started offering high-quality international shipping options to help you export from India to UK.
Increased Profit Margins
Because products in the UK are generally bought and sold in pounds, manufacturing your products in India for cheap and selling them at much higher prices in the UK than you could command locally, would help your business stretch its profit margins to the maximum limits.
This is one of the main reasons to even get products exported from India to UK. Additionally, because your company doesn’t need to have employees or a physical office in the UK, all business interactions can be handled directly from India, which contributes to lower expenditures and higher profit margins.
List of Required Documents to Get Your Products Exported From India to UK
A way bill is simply a record provided by every shipping carrier that comprises all important shipping-related information, such as the consignor’s and consignee’s names, the products’ point of origin, its end-destination and the transit route that is assigned.
Commercial Export Invoice
Customs offices utilise the commercial export invoice to declare exported items at both the port of origin and end destination. The document has the following specifications:
- Name, address and phone number of the seller
- Name, address and contact information, as well as the EORI and VAT registration numbers of the recipient
- Name, address and phone number, as well as the VAT registration number of the customer
- Issuance location and date, bill number and nation of origin
- Payment and delivery terms and conditions, including incoterms, the type of SKUs and quantity of units being shipped
- Product description, including item codes and quantity specifications
- Pricing of the product
Letter of Instruction From the Shipper
The exporting side of a trade (in this case, India) files the Shipper’s Letter of Instruction (SLI), which is then granted to the shipping carrier, who will now oversee the shipment of goods on the exporter’s behalf. This document assists in providing the logistics partner engaged in the shipping with transportation and paperwork instructions. In the documentation, an SLI is advised for when you export from India to UK.
Import Duties and VAT
On orders of any value, the minimum duty imposed when you export from to UK is £135. In addition, all imports entering the country, including those from India, are subject to a 20% VAT. When importing low-value items into the UK, VAT submission is always required.
Along with this, other documents, including a packing list, a letter of credit (LOC) and an airline bill, may also be needed, depending on the type of cargo being exported, such as a drug licence in the case of exports of pharmaceuticals.
5 Most Common Products Exported From India to UK in 2023
India is one of the global leaders in supplying industry-grade equipment, machinery and other hardware required to manufacture various items. The country is also one of the largest steel producers in the world and hence, produces a variety of stainless steel tools and apparatus to assist with the efficient use of the material.
Pre-pandemic, the rate and valuation of the export of industrial goods from India to UK was slightly higher than it is now. However, since 2021, the industry has seen a positive recovery, racking in more than $76 billion. Many leading UK-based manufacturing and engineering companies rely on the export from India to UK, of all the various materials they need for their production lines.
When it comes to petroleum products like oil and gas, most people’s minds would instantly think of countries like Saudi Arabia and Russia. However, it may come as a surprise that India factors into the list of the 5 leading exporters of petroleum-based goods. Some of the petroleum products exported from India to UK include petrol, natural gas, jet fuel, diesel, liquid petroleum, lubricants and more.
These materials are essential to the smooth running of essential services, such as petrol stations and vehicle servicing, and also for manufacturing and operational processes. India also boasts of the 2nd largest network of oil refineries in Asia, which makes it an appealing alternative to countries like China.
Jewellery and Gems
India has always had a penchant for unearthing valuable materials and jewellery is no exception. The country is a prime source of various valuable gems, such as gold, diamonds, silver and more. Additionally, Indian jewellery is revered all over the world for its unique and intricate designs, making it an appealing option for westerners and people from other cultures.
In addition to the sheer amount of natural gems, synthetic gems are also produced and exported in large quantities. These factors have made India the 5th largest exporter of valuable gems and jewellery in the world. They are one of the leading products exported from India to UK.
Clothing and Fabrics
India is home to a comprehensive fashion and textile industry, producing some of the largest quantities of cotton and other fabrics in the world. As a result, India is one of the leading exporters of cotton, especially to the UK. In fact, even countries that commonly manufacture clothing items, like Vietnam and Bangladesh, import huge amounts of cotton from India.
Since cotton is highly necessary for the creation of high-quality clothing goods, a high premium is placed on it, making it a desirable and sought-after commodity. In the latter half of 2020, cotton exports went up by more than 100%.
India is one of the largest manufacturers of pharmaceutical items in the world and the UK is among its leading customers. Pharmaceutical products exported from India to UK are estimated to be valued at $705 million in 2021, a consistent expansion from previous years.
Additionally, the country also has a reputation for producing vaccines at faster rates than the global average, as was evidenced by the rapid production and export of vaccines worldwide in the midst of the global pandemic. Due to the increased emphasis placed on healthcare in countries like the UK, pharmaceutical products exported from India to UK are highly desired.
Conclusion: Introduce Your Brand to International Shipping to UK With WareIQ Global
International shipping has taken the world by storm and has made it possible to seamlessly export from India to UK and to enjoy the best of what both countries have to offer. India provides an expansive and cost-effective labour force which makes it possible for goods to be manufactured at cheap rates. Conversely, the UK is a highly developed country with a refined eCommerce customer base that is accustomed to using online services to purchase the products they need.
Because of these factors, products exported from India to UK have a high chance of being successful and garnering the attention of customers in the UK. Therefore, from a business standpoint, it could be the push that your company needs to increase its sales figures and profit margins. If you need assistance exporting products from India to the UK or any other country or territory worldwide, you can consider partnering with WareIQ.
WareIQ is one the fastest-growing eCommerce fulfillment companies in India. Our WareIQ Global Service offers retailers the infrastructure and facilities to ship their products to almost anywhere across the globe. To aid with this, we provide the following features:
We have partnered with most major international courier service and shipping carriers, such as FedEx, DHL and more, to provide cost-effective shipping services, in return lower shipping costs to more than 220 countries and territories across the world, including the UK, US, EU and Australia.
Multiple Inventory Storage Options
We have partnered with multiple warehousing companies and fulfillment companies worldwide to provide localised storage facilities in countries you’d want to ship to, including the UK. Additionally, you can also store your inventory in India and export each order individually, as soon as they come in.
We provide international last-mile delivery services in most international destinations to the customer’s doorstep.
Cost-Effective and Flexible Rates
We offer some of the most cost-effective rates in the industry in addition to providing multiple offers and discounts on bulk orders.
Seamless Setup Process
We require only the essential documents required for international shipping and provide a swift onboarding and setup process so you can start shipping your goods instantly.
Suggested Read: Top 10 Courier Services From India to USA