How to Get an Export License in India Easily

Published on October 31, 2025

• 7 min read

An export license in India refers to the Import Export Code (IEC), a mandatory identification number issued by the Directorate General of Foreign Trade (DGFT). Without an IEC, neither a business nor an individual can export or import goods legally, unless specifically exempted.

For service exports, IEC is not required unless the service provider wishes to claim benefits under the Foreign Trade Policy. This makes IEC crucial mainly for goods trade and policy-linked advantages.

Since the introduction of GST, the IEC is equivalent to the Permanent Account Number (PAN) of the firm. However, the Directorate General of Foreign Trade (DGFT) still issues an IEC separately upon receipt of an application.

Any business entity, including proprietorships, partnerships, LLPs, private or public limited companies, trusts, HUFs, and societies, can apply for an IEC. In this guide, you will learn about the prerequisites for an IEC, the step-by-step process of applying for an export license in India, the required documents, costs, and more.

Table Of Contents

Pre-Requisites for Applying for IEC: Export License Requirements
How to Apply for an Export License in India: Step-by-Step Process
Documents Required for IEC Registration
Export License Cost in India
Export-Import Performance: India’s Data Bank
Export Management System
How WareIQ Supports Exporters in India
FAQs

Pre-Requisites for Applying for IEC: Export License Requirements

To obtain an Import Export Code (IEC), the applicant firm must fulfil certain prerequisites. IEC can be obtained by a proprietorship, partnership, LLP, private or public limited company, trust, HUF, or society.

The firm must have a valid PAN, a bank account in its name, and a proper registered address. The Directorate General of Foreign Trade (DGFT) may physically verify the address after issuing the IEC.

Before starting the application, it is essential to have your PAN, bank details, and firm details ready.

How to Apply for an Export License in India: Step-by-Step Process

Step 1: Apply for IEC

To begin, apply for an Import Export Code (IEC). A PAN, bank account, and valid firm address are mandatory. The DGFT may physically verify the address after issuance. Keep PAN, bank, and firm details ready before applying.

Step 2: Link Your Profile to IEC

If you already have an IEC, link it to your user profile on the DGFT portal. A digital signature token will be required for this step.

Step 3: View IEC Profile

The IEC profile stores details of your firm as registered with DGFT. Along with the IEC number, it includes RCMC, industrial registration details, status holder details, and past export performance.

Step 4. Print IEC Certificate

Download and print your IEC certificate. It contains the firm’s name, address, IEC number, date of issue, and branch details. New certificates also feature a QR code for online verification.

Step 5: Update or Modify IEC

If any firm details change, please modify them online through the IEC. The system allows for auto-approved updates, ensuring a quick processing time.

Step 6: Surrender IEC

If you no longer wish to use the IEC, submit an online surrender request. The IEC will be suspended from transactions, but can be reactivated later by revoking the suspension.

Step 7: Request Removal from DEL

If your IEC appears in the Denied Entity List (DEL), you can apply online for its removal and regain eligibility for DGFT benefits and schemes.

Step 8: Revoke Suspension or Cancellation

If the IEC has been suspended or cancelled, submit an online request to revoke the suspension or cancellation and resume transactions.

Step 9. Manage Users Linked to IEC

Multiple users can be linked to one IEC. You can add primary or secondary users and assign them permissions to access DGFT schemes.

Step 10. Request for Merger/Demerger

If your IEC has been merged or demerged with another entity, please update the system accordingly. Multiple entities can be linked together under this process.

Documents Required for IEC Registration

Here are the documents required for IEC Registration:

Valid Digital Signatures Token
Valid PAN
Valid Mobile Number and Email ID
Valid Address Details of the Branch Office
Valid Bank Account in the name of the IEC Holder
Valid Aadhar Card matching the details with the PAN Card

Also check – Types of Export Incentive Schemes & Benefits for Indian Businesses

Export License Cost in India

The primary cost of obtaining an export license in India is the government fee for the Import-Export Code (IEC). Currently, the fee is ₹500, which is a one-time payment. The IEC is valid for a lifetime and does not require renewal.

Export-Import Performance: India’s Data Bank

HS Code	Commodity	2024-2025 (IN Cr)	% Share	% Growth
09	Coffee, Tea, Mate and Spices	45,433.67	1.2268	15.81
17	Sugars and Sugar Confectionery	21,182.41	0.5720	-22.28
33	Essential Oils, Resinoids, Perfumery, Cosmetic or Toilet Preparations	22,862.51	0.6173	-6.80
52	Cotton	53,602.90	1.4474	-4.53
58	Special Woven Fabrics, Tufted Fabrics, Lace, Tapestries, Trimmings, etc.	3,107.36	0.0839	4.28
57	Carpets and Other Textile Floor Coverings	17,743.68	0.4791	14.25
95	Toys, Games and Sports Requisites; Parts and Accessories Thereof	4,820.53	0.1302	11.34

Source: Tradestat

Export Management System

The Directorate General of Foreign Trade (DGFT), under the FTDR Act, notifies restrictions, quotas, or conditions on specific categories of exports from India. In such cases, exporters must obtain a license or registration before exporting.

The Export Management System provides modules for applying for export licenses, quotas, and registrations. These include licenses for restricted items, SCOMET items, and licenses issued under agreements such as the Indo-US Memorandum of Understanding or Indo-EU arrangements.

Restricted Exports

Certain items are restricted for export and require prior approval from DGFT. Exporters must apply for an export license through the system before shipping such goods.

SCOMET Exports

Exports of Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) listed in Appendix 3 of Schedule 2 of ITC(HS) require a license. Exporters must submit a request online to obtain this approval.

Registration Certificate (RC) for Export

For certain products, exporters are required to obtain a Registration Certificate (RC) prior to exporting. For example, exports involving the USA’s unilateral export crime control items or regional security items require an RC.

Suggested read – Import Export Code Registration

How WareIQ Supports Exporters in India

WareIQ goes beyond fulfillment to help Indian exporters streamline operations, stay compliant, and scale globally. Here’s how:

Pan-India Fulfillment Network: WareIQ’s 12+ city hubs and last-mile delivery coverage across 27,000+ pin codes ensure faster domestic distribution before export dispatch.
Seamless Multi-Channel Integrations: Plug-and-play integrations with Amazon, Flipkart, Nykaa, Shopify, Magento, WooCommerce, WMS, and ERPs simplify order management across domestic and international channels.
Export-Ready Inventory Management: With Inventory LogIQ (AI-driven planning), exporters can avoid stockouts, automate replenishment, and maintain optimal inventory across markets.
Returns & Compliance Support: A tech-enabled returns QC solution captures and stores HD media proof, reducing disputes and marketplace claim rejections—key for exporters shipping to strict compliance markets.
End-to-End Seller Enablement: Services such as APOB/PPOB registrations, GST compliance, COD/NDR verification, and dedicated account managers empower exporters to focus on business growth, while WareIQ handles the backend.

Suggested read – How to Export from India: A Complete Beginner’s Guide

FAQs

Is an IEC required for exporting samples from India?

Yes, IEC is mandatory even for exporting product samples, unless exempted by DGFT.

How long does it take to get an export license in India?

The IEC is usually issued within 5-15 working days of a successful online application.

Do exporters need separate IECs for each branch or business line?

No, one IEC is valid for the entire firm and all its branches or units.

Can an individual apply for an IEC without being associated with a registered company?

Yes, individuals can apply for an IEC using their personal PAN and bank account details if they plan to export or import goods.

What happens if an exporter fails to update IEC details?

Failure to update the IEC may lead to deactivation, and exporters will be unable to process shipments until it is reactivated.

Supercharge your fulfilment with WareIQ now, contact our team.

Author

Mariyam Jameela

Mariyam Jameela works as a content writer at WareIQ. With a proven track record of working with renowned brands such as GO Digit, Urban Ladder, Juspay, Hong's Kitchen, and many more. She actively contributes to the creation of blog posts centered on eCommerce operations, fulfillment, and shipping, in addition to providing insights on various strategies and techniques tailored for eCommerce sellers

Read all of Mariyam Jameela's Posts

Role of IT in Supply Chain Management Explained

In today’s fast-paced business environment, the role of IT in supply chain management has become more critical than ever. Modern supply chains are no longer just about moving goods from point A to point B. They involve complex networks of suppliers, manufacturers, warehouses, and customers that require smooth coordination. Supply chain and information technology work hand in hand to bring visibility and agility to these processes. IT is transforming traditional supply chains into intelligent, data-driven systems that can respond quickly to market demands. Understanding this synergy is crucial for businesses seeking to deliver exceptional customer experiences. In this guide, you will learn about the role of IT in supply chain management.Why IT Matters in Modern Supply ChainsInformation technology in supply chain management is essential for efficiency and competitiveness. It enables real-time tracking, accurate forecasting, and better decision-making across networks.Supply chains involve suppliers, manufacturers, transporters, and customers collaborating to work together. Information and supply chain management ensure smooth coordination among these entities.Globalisation has increased competition, demanding smarter and faster operations. IT tools improve visibility, minimise delays, and help predict disruptions effectively.Traditional centralised systems are vulnerable to attacks and failures. Decentralised solutions like blockchain provide secure, transparent, and reliable data sharing.Blockchain creates immutable records that are independent of third parties. This strengthens trust, enhances performance, and supports efficient supply chain flows.Modern supply chains must adopt emerging technologies to remain competitive and survive. Information technology in supply chain management drives resilience, innovation, and long-term growth.Functions of Information Technology in Supply Chain ManagementProcurement and Supplier Management Modern procurement relies heavily on data analysis to optimise supplier relationships and enhance overall efficiency. Spend analysis provides a clear view of expenditure patterns, highlighting opportunities for cost reduction and supplier consolidation.Supplier performance analysis helps organisations assess vendors using KPIs like quality, timeliness, and reliability. This supports smarter supplier selection and builds stronger partnerships.Predictive analytics further strengthens procurement by forecasting demand and inventory needs. It reduces risks of overstock or shortages, ensuring smoother supply chain operations.Logistics, Transportation, and Last-Mile DeliveryTechnology has transformed logistics with real-time tracking and visibility. Expensive and sensitive goods are now monitored using IoT-enabled tracking devices.Cloud-based platforms integrate tracking data from multiple sources. This creates a centralised view of goods movement, improving control and responsiveness.IoT sensors form the backbone of logistics data collection. They can be simple passive tags on packages or advanced edge devices with GPS on trucks and containers.Edge devices provide precise location and long-range communication capabilities. Combined with base stations, they transmit data to the cloud for continuous monitoring.Distribution centres and warehouses benefit from these systems by gaining accurate, real-time insights into asset location and condition.Case Study – Role of IT in Supply Chain Management in ActionThe role of IT in the supply chain management case study is well illustrated by Lotus Herbals’ collaboration with WareIQ. By adopting WareIQ’s full-stack fulfilment solution, the brand streamlined its operations and achieved rapid growth.Key IT-Enabled Advantages for Lotus HerbalsPan-India Network Access: On-demand fulfillment centres, including temperature-controlled warehouses, eliminated upfront investment and supported expansion into two new locations.Smart Fulfillment Platform: Seamless integration with multiple sales channels, lightning-fast order processing, analytics-driven control, and simplified returns management.Shipping Engine: Automated courier selection across 29,000+ pin codes, optimised cost and delivery speed.AI-Powered Inventory Optimisation: Placing the right SKUs in the right quantities at the right locations reduces holding costs and accelerates deliveries.Operational Support: Skilled WareIQ teams managed inwarding, processing, packing, dispatch, returns, and SLA compliance.Marketplace Enablement: Catalogue listing, inventory transfers, pricing, and promotions for Amazon, Flipkart, Meesho, and more boosted marketplace sales.Impact Achieved by Lotus Herbals3x increase in sales across channels11 percentage point improvement in regional shipments1-day reduction in average delivery timelines (1.3x faster deliveries)7.5% lower average cost per shipment20-point reduction in product returnsSCM IT – Key Technologies Powering Supply ChainsRole of AI in Supply Chain ManagementArtificial Intelligence enables predictive insights and smarter decision-making. AI algorithms analyse historical data to forecast demand, optimise inventory, and minimise stockouts. Machine learning models improve supplier selection, delivery scheduling, and risk management. AI-powered chatbots also enhance customer service by providing real-time order updates. The role of information technology in supply chain management is strengthened by AI’s ability to learn continuously and improve accuracy over time.Role of IoT in Supply Chain ManagementThe Internet of Things connects physical assets through sensors and tracking devices. The IoT enables real-time monitoring of goods, from warehouses to the last mile of delivery. Sensors measure temperature, location, and movement, making them vital for industries handling perishable or sensitive items. IoT devices enhance visibility, minimise losses, and provide actionable data for informed decision-making. Its integration demonstrates the growing role of IT in SCM.Role of Blockchain in Supply Chain ManagementBlockchain provides an immutable and decentralised ledger, ensuring transparency and trust. It allows all stakeholders to access a single source of truth for transactions, from raw material sourcing to final delivery. This reduces fraud, improves traceability, and strengthens compliance with regulations. The role of information technology in supply chain management is amplified by blockchain’s ability to secure and validate every transaction without relying on third-party dependencies.Role of Cloud in Supply Chain ManagementCloud technology enables real-time collaboration across global supply chain networks. It centralises data storage, making information accessible to suppliers, manufacturers, logistics providers, and retailers from any location. Cloud platforms scale easily, adapt to business needs, and lower IT infrastructure costs. By providing a unified view of operations, the cloud highlights the role and importance of IT in supply chain management for agility and responsiveness.Role of Automation in Supply Chain ManagementAutomation enhances efficiency by reducing manual tasks and errors. Robotics in warehouses accelerate the processes of picking, packing, and sorting. Automated systems streamline order processing and inventory management, enhancing efficiency and accuracy. In transportation, automated scheduling tools optimise routes and lower costs. The role of IT in SCM is evident, as automation directly improves speed, accuracy, and scalability.Strategic Benefits of Information and Supply Chain ManagementIt is no longer optional to leverage modern technology in managing supply chain functions. To stay competitive in today’s fast-paced global economy, brands must rely on tools that optimise, scale, and move products efficiently around the world. Here are the top five reasons technology outperforms traditional solutions:VisibilityTechnology centralises and controls supply chain information. Operators gain complete visibility, from manufacturing and procurement to assembly, distribution, and last-mile delivery. Greater visibility enables accurate forecasting and informed decision-making based on historical data.Lower Error RatesAccuracy is crucial for global product distribution, particularly in e-commerce. Automation tools significantly reduce human errors. For instance, picking robots have near-zero error rates, whereas manual warehouse operations can have error rates of 1–3%. Fewer mistakes mean less revenue loss due to mismanaged shipments, damages, or lost items.Ease of ImplementationMany technology solutions are off-the-shelf and require little to no coding. Unlike analogue or manual procedures, which demand extensive experience and time to implement, these tools can be deployed quickly and efficiently.FlexibilityTechnology enhances organisational agility, allowing quick adaptation to dynamic market conditions. Businesses can respond to changing demands, capture new opportunities, and increase market share, revenue, and profitability.Cost EfficiencyWhile some solutions may appear expensive initially, most deliver a high return on investment. Software solutions are cost-effective to implement, and hardware costs are decreasing due to technological advances and widespread adoption. Combined with operational improvements, these tools provide exponential benefits that justify the investment.FAQsHow does IT help in risk management within supply chains?IT enables real-time monitoring of disruptions, predictive analytics for demand fluctuations, and automated alerts for delays, helping companies proactively manage risks.Can cloud-based SCM systems reduce operational costs?Yes, cloud SCM platforms reduce the need for on-premise infrastructure, minimise manual errors, and allow scalable operations, which lowers overall supply chain costs.What role does data analytics play in improving supplier performance?Data analytics tracks supplier KPIs, delivery times, and quality metrics, enabling informed decisions, fostering stronger partnerships, and optimising procurement strategies.How does IT enhance sustainability in supply chains?IT tools optimise routes, reduce excess inventory, and track carbon footprints, helping organisations minimise waste and adopt environmentally friendly practices.Can small businesses benefit from IT in supply chain management?Absolutely. Even SMEs can leverage cloud-based SCM, automation, and analytics to improve inventory control, reduce lead times, and enhance customer satisfaction.

October 30, 2025

RCMC Registration: Step-by-Step Process Explained

The Registration Cum Membership Certificate (RCMC) is a mandatory certificate for exporters in India, confirming their membership with an Export Promotion Council (EPC) or the Federation of Indian Export Organisations (FIEO). It validates that the exporter is authorised to trade specific goods under India’s Foreign Trade Policy (FTP).This registration is essential because it enables exporters to access various benefits, incentives, and government schemes. Without RCMC registration, exporters cannot avail duty exemptions, export subsidies, or participate in global trade promotions through EPCs.In this blog, we will explain what RCMC registration is, including the required documents, applicable fees, and a step-by-step procedure for online registration. This guide will help exporters understand how to obtain RCMC efficiently and stay compliant with the FTP.Why Do Exporters Need RCMC Registration?RCMC registration is important for exporters because it provides legal authorisation to trade under India’s Foreign Trade Policy. It acts as proof that the exporter is registered with a recognised Export Promotion Council or FIEO.One major benefit of RCMC registration is the ability to export or import restricted items, provided proper approval is obtained. Exporters also become eligible for various government incentives and schemes that reduce export costs and improve competitiveness.Through RCMC online registration, exporters can claim benefits under schemes like RoDTEP, RoSCTL, and SEIS. They also gain access to a Letter of Undertaking (LUT) under GST, which enables them to export goods without incurring duties.The certificate helps simplify customs procedures, reduce transaction costs, and ease compliance. Exporters can also trade in multiple product categories without restriction.Additionally, RCMC registration connects exporters with EPCs and Commodity Boards, giving them access to technical support, guidance, and global market opportunities.RCMC Registration Online Process: Step-by-Step GuideIf you are planning to apply, here is a comprehensive explanation of the RCMC registration process, step by step.Step 1: Identify the Relevant Export Promotion Council (EPC)The first step is to find out which EPC, Commodity Board, or Export Development Authority is responsible for your product category. Each restricted product comes under the jurisdiction of a specific council approved by the Directorate General of Foreign Trade (DGFT).Once identified, exporters must apply to the respective authority for their RCMC. This certificate also works as proof of membership and is necessary to avail concessions under the FTP.Step 2: Gather the Documents Required for RCMC RegistrationBefore filling out the RCMC registration form, it is important to prepare all the documents. Exporters must have an active Import Export Code (IEC), an updated IEC profile, and a linked Digital Signature Certificate (DSC) or Aadhaar e-Signature.The complete list of documents required for RCMC registration includes:IEC number issued by the regional licensing authority.Permanent Account Number (PAN) from the competent authority.Memorandum of Association (MOA) for corporate, institutional, or limited companies.Partnership Deed for partnership firms and Individuals.Trust Deed for Trusts and Institutional Entities.Certificate from the Registrar of Companies for registered office change (if applicable).Certified data on foreign exchange earnings for the last three years, issued by a chartered accountant.Board resolution or power of attorney in favour of the signing authority, if not mentioned in the IEC or MOA.GST registration certificate.Step 3: Fill Out the RCMC Registration FormAfter gathering the documents, exporters must fill out the RCMC registration form. This form can be obtained from the respective EPC or completed online via the DGFT portal.Step 4: Submit Letter of Authority for RCMC Registration (If Applicable)In certain cases, exporters may need to provide a letter of authority. This is especially relevant if the application is submitted by someone other than the official signatory of the business.The online submission can be made through DGFT’s e-RCMC portal.Step 5: Pay the RCMC Registration FeesThe RCMC registration fees vary depending on the EPC and the business type (manufacturer, merchant exporter, or service exporter). The fees are generally nominal and are paid directly during the online application.Step 6: Complete RCMC Online Registration on the DGFT PortalThe final step is to complete the RCMC registration process online via the DGFT portal. Exporters must upload scanned copies of all supporting documents, pay the fees, and digitally sign the application.RCMC Registration Fees and ValidityThe RCMC registration fees differ across Export Promotion Councils (EPCs) and Commodity Boards. The amount depends on various factors, including export turnover, product category, MSME status, and the duration of membership. For example, the Federation of Indian Export Organisations (FIEO) charges a one-time admission fee plus an annual term fee, while the Export Promotion Council for Handicrafts (EPCH) follows a fixed annual fee model.The cost ranges from a few thousand to over ten thousand rupees, with an additional 18% GST applied. Exporters should check the respective EPC’s official fee structure before applying. Some councils also offer discounts for multi-year membership payments, making long-term registration more economical.The validity of RCMC registration is usually five years. Exporters must renew their certificate before expiry to continue accessing benefits under the Foreign Trade Policy.Comparison Table: RCMC Registration Fees & Validity (Major EPCs)EPC / CouncilFee Structure HighlightsApprox. FeeEPCH (Export Promotion Council for Handicrafts)Entrance + annual membership (incl. GST).₹8,850 (₹2,500 entrance + ₹5,000 annual + GST)APEDA (Agri & Processed Food Export Authority)Govt. registration + professional fee.~₹9,400 (₹5,900 govt. + ~₹3,500 service)FIEO (Federation of Indian Export Organisations)Entrance/processing and subscription fees vary by category.~₹6,250 for new individual exporter/service provider (higher for Export House).CEPC (Carpet Export Promotion Council)One-time entrance + annual fee (based on turnover).₹2,360 entrance; annual fee ₹2,360–₹11,800 (turnover-based).AEPC (Apparel Export Promotion Council)Entrance + annual fee; MSME reimbursement available.₹10,620 (₹1,180 entrance + ₹9,440 annual, incl. GST).TEXPROCIL (Textile Export Promotion Council)Fees differ for members and registered exporters.Member: ₹20,060; Registered Exporter: ₹10,620 (incl. GST).CAPEXIL (Chemicals & Allied Products Export Promotion Council)Admission + first-year annual fee; MSME discount.Small biz: ₹3,000 admission + ₹1,000 annual; Larger: ₹5,000 admission + ₹14,500 annual (plus GST).Coffee Board of IndiaRegistration + application + service charges.~₹11,999 (incl. ₹5,000 registration + form + professional fees).ESC (Electronics & Computer Software EPC)Annual fee based on export turnover.Starts at ₹10,000 (+ GST) for exports ≤₹10 lakh; higher for larger exporters.GJEPC (Gems & Jewellery EPC)Fee based on export performance + admission fee.₹7,400 – ₹2,00,000 (depending on turnover) + ₹5,000 admission (+ GST).Tea Board of IndiaFees vary; some cite RCMC as free, others charge.~₹4,999 – ₹15,899 (depending on registration type).Note: The fees and validity mentioned above are approximate values. Exporters should always refer to the official EPC or Commodity Board website for the latest fee structure and renewal guidelines.Power Export Growth With WareIQ Beyond RCMC RegistrationOnce exporters complete their RCMC registration, the next challenge is ensuring smooth operations across the supply chain, fulfillment, and compliance. This is where WareIQ, a Y Combinator-backed e-commerce full-stack platform, comes into play. WareIQ enables multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B channels, helping exporters expand globally with efficiency and scale.Key Solutions Offered by WareIQPan-India Fulfillment NetworkOperates Seller Flex & FAssured compliant centres across 12+ cities, supported by shipping partners delivering to 27,000+ pin codes.Multi-Channel Fulfillment PlatformPlug-and-play integrations with marketplaces (Amazon, Flipkart, Myntra, Nykaa), D2C platforms (Shopify, Magento, WooCommerce), WMS, and ERPs. Exporters can manage fulfillment across distributors, flagship stores, and eCommerce channels with built-in analytics.Inventory LogIQAn AI-driven inventory planning tool that minimises stockouts, automates replenishment, and ensures products are always export-ready.Tech-Enabled Returns QCCaptures and stores high-definition evidence of damaged or missing returned products, reducing disputes and preventing marketplace claims rejections.Seller Enablement & Compliance SupportServices include dedicated account management, APOB/PPOB registrations, GST registration, NDR & COD verification, and more.Seller of Record SolutionAllows exporters to go live rapidly on multiple marketplaces with premium-tier access, simplified operations, and zero compliance risks.FAQsIs RCMC mandatory for all exporters?No, RCMC is mandatory only for exporters seeking benefits under the Foreign Trade Policy (FTP). Voluntary exporters can still apply for access schemes and incentives.Can one exporter hold multiple RCMCs?Yes, an exporter dealing in products across different sectors can obtain multiple RCMCs, each from the relevant Export Promotion Council or Commodity Board.What documents are generally required for RCMC registration?Key documents include an Import Export Code (IEC), company PAN, GST registration, bank certificate, and proof of business premises. Specific requirements may vary by council.How does RCMC help in resolving trade disputes?Many Export Promotion Councils offer mediation and support services to registered members in the event of disputes with international buyers, thereby reducing risks for exporters.

October 29, 2025

E-Commerce Models: Types and How They Work

India’s e-commerce ecosystem is experiencing unprecedented growth, driven by the adoption of UPI, integration with ONDC, the availability of affordable smartphones, and increased rural internet penetration. E-commerce models define how value is created, how transactions flow, and which strategies are most effective in achieving this goal. The impact of e-commerce on business models is evident in the rise of D2C brands, the growing popularity of aggregator apps, and even in government-driven digital transactions.However, regardless of the path a business chooses, whether it’s an inventory-based e-commerce model or a value chain model, fulfillment and logistics are crucial for success. In this blog, we’ll break down five types of e-commerce models, explain how they work, highlight market trends, and share e-commerce models with examples to help you choose the right strategy for your business.Business-to-Consumer (B2C) ModelIn the Business-to-Consumer (B2C) model, businesses sell products or services directly to consumers, bypassing intermediaries such as wholesalers. For example, a clothing brand selling directly to customers online follows this model. Flipkart, Nykaa, and BigBasket are leading B2C players in India.The aggregator model in e-commerce, specifically in the B2C model, involves a platform partnering with multiple service providers or sellers, standardizing their offerings under its brand, and directly connecting them with consumers. Examples include Uber, Zomato, and Swiggy, among others.How It WorksA consumer identifies a need, explores available options, and completes the purchase. In e-commerce models, this process moves online.Consumers browse a website or app, pay digitally or via COD, and receive doorstep delivery.Market Size & TrendsThe global B2C e-commerce market was valued at USD 5.47 trillion in 2023 and is projected to reach USD 17.77 trillion by 2030, growing at a CAGR of 19.1% (2024–2030). Future OutlookB2C will continue to evolve through social commerce, D2C brands, and quick commerce (Q-commerce). With consumers demanding faster delivery, hyperlocal fulfillment, and advanced logistics, this e-commerce model will be at the core of the industry.Business-to-Business (B2B) ModelThe B2B e-commerce model involves businesses selling products or services to other businesses, rather than directly to individual consumers. Examples include SaaS providers offering productivity tools to enterprises or wholesalers supplying retailers. Some examples are: IndiaMART, Udaan, and JioMart.How It WorksIn this B2B model in e-commerce, a company employee or department purchases on behalf of the organization. The buying process is longer and more complex compared to B2CInvolves stages such as awareness, evaluation, engagement, and negotiation before a purchase. Contracts, bulk orders, and custom pricing often define these transactions.Market Size & TrendsThe global business-to-business e-commerce market was valued at USD 18,665.95 billion in 2023 and is expected to reach USD 57,578.97 billion by 2030, at a CAGR of 18.2% (2024–2030).Future OutlookThe B2B e-commerce model is expected to continue growing with the digitization of supply chains, the adoption of AI-driven procurement, and the implementation of seamless payment solutions. Platforms offering bulk B2B fulfillment, such as WareIQ, and those with transparent pricing will dominate the next phase.Consumer-to-Consumer (C2C) ModelThe Consumer-to-Consumer (C2C) model is one of the earliest e-commerce business models, where individual consumers sell goods or services directly to other consumers. In the C2C model, a third-party platform facilitates the exchange of goods and services. Examples include OLX and Meesho.How It WorksA consumer lists a product or service on a C2C platform. Other consumers browse these listings, contact the seller, and complete the transaction through the platform’s payment gateway. The platform earns revenue by charging listing fees, commissions, or transaction charges.Market Size & TrendsThe global consumer-to-consumer e-commerce market was valued at USD 1,789.58 billion in 2023 and is projected to reach USD 7.91 trillion by 2030, at a CAGR of 24.3% (2024–2030).Future OutlookC2C platforms will continue to expand further with the rise of social commerce and recommerce trends. As sustainability gains importance, second-hand and thrift platforms are expected to reshape e-commerce models in India.Consumer-to-Government (C2G) Model The Consumer-to-Government (C2G) model enables digital transactions between individual citizens and government agencies. Citizens act as customers, while the government provides services online. Examples: Income tax and GST payments, Passport Seva applications, driving license renewals, and property tax payments.How It WorksA citizen accesses a government portal or mobile app, selects the service, fills in the required details, and completes a secure payment via credit/debit card, UPI, or digital wallet. The government processes the transaction and issues a digital confirmation or receipt.Future OutlookC2G adoption will expand as digital governance strengthens, offering more services online with seamless payment and verification options, simplifying citizen-government interactions.Business-to-Government (B2G) ModelThe Business-to-Government (B2G) model refers to transactions in which businesses provide goods or services to local, state, or federal government agencies. Office supply firms, IT service providers such as TCS and Wipro, and specialized equipment manufacturers are collaborating with public sector agencies.How It WorksGovernment agencies usually release tenders or requests for proposals (RFPs). Businesses that meet the eligibility criteria participate in the bidding process by submitting proposals and pricing information. The government then reviews submissions and awards contracts to the most suitable vendor.Market Size & TrendsThe Indian government is increasingly digitizing procurement through platforms like the Government e-Marketplace (GeM), where over 60,000 buyers and 5 million sellers are already registered. This has accelerated the adoption of the B2G e-commerce model across various industries, including IT, infrastructure, and defense.Future OutlookWith initiatives like Digital India and GeM, B2G e-commerce is expected to continue expanding, offering greater transparency, faster procurement, and more opportunities for SMEs to engage with the government.Comparison Table of All Models ModelDefinitionHow It WorksExamplesFuture OutlookB2CBusinesses sell directly to consumers.The consumer browses, pays, and receives doorstep delivery.Flipkart, Nykaa, BigBasket, SwiggyGrowth via D2C, social commerce, and quick commerce.B2BBusinesses sell to other businesses.Bulk orders, contracts, and longer buying cycles.IndiaMART, Udaan, JioMartDigitized supply chains, AI-driven procurement.C2CConsumers sell to other consumers.The seller lists, the buyer pays via the platform, and the platform charges fees.OLXRise of recommerce and thrift-driven platforms.C2GCitizens transact with the government online.Pay taxes, bills, fines, or apply for services digitally.Income Tax Portal, GST, Passport SevaMore services to move online under Digital India.B2GBusinesses provide goods/services to the government.The government issues tenders, businesses bid, and contracts are awarded.TCS, Wipro, GeM sellersExpansion via GeM and SME participation.Which Model is Best for You and how WareIQ can HelpThe right e-commerce model depends on your business goals, target customers, and industry.If you’re building a D2C brand, a B2C model with quick, reliable deliveries works best.For wholesalers and distributors, the B2B model enables bulk orders and long-term partnerships.Sellers of pre-owned or thrift products benefit from the C2C model, while digital-first startups can explore B2B2C or aggregator models.Businesses and citizens interacting with the government leverage B2G and C2G models.WareIQ, a Y-Combinator-backed full-stack e-commerce platform, enables brands to scale across D2C, marketplaces, quick commerce, and B2B (general & modern trade) with ease.What WareIQ Offers:Pan-India Fulfillment Network: Seller Flex & FAssured compliant warehouses in 12+ cities, delivering to 27,000+ pin codes.Multi-Channel Fulfillment Platform: Plug-and-play integrations with leading marketplaces (Amazon, Flipkart, Myntra, Nykaa), D2C platforms (Shopify, Magento, WooCommerce), WMS, and ERPs.Smart B2B Fulfillment: From inventory transfers to picking, packing, and last-mile shipping with real-time tracking.Analytics & Visibility: Centralized dashboard to monitor operational performance and optimize costs.By combining a tech-first SaaS platform with an extensive logistics network, WareIQ has become the preferred fulfillment partner for over 400 leading Indian e-commerce brands.FAQsCan a business operate under more than one e-commerce model at the same time?Yes. Many brands use hybrid strategies. For example, a D2C brand (B2C) that also supplies to retailers (B2B) or sells through marketplaces (B2B2C).What role does logistics play across different e-commerce models?Logistics is critical in every model. In B2C and quick commerce, speed of delivery is the most important factor. In B2B, bulk shipping and warehouse efficiency are crucial for success. In C2C, platforms need reliable courier integrations.How do payment systems differ across e-commerce models?B2C and C2C focus on instant digital payments or COD, while B2B often uses credit terms, bulk invoicing, or recurring billing. Government-related models (C2G/B2G) rely on secure gateways, UPI, and compliance-based payment processes.Which e-commerce model is most suitable for startups in India?For most startups, B2C or D2C is the best entry point due to lower barriers, direct customer relationships, and scalability via marketplaces. Over time, startups may expand into B2B or B2B2C once their brand and supply chains mature.What are the common e-commerce revenue models?Common revenue models include commission-based (e.g., Flipkart, Meesho), subscription-based (e.g., Amazon Prime), freemium (e.g., SaaS tools), advertising-based (e.g., OLX, marketplaces), and inventory-based (e.g., brands selling directly).

October 28, 2025