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Amazon Commission Rates for Sellers Explained

When you sell on Amazon, you pay a referral fee for each product sold. This is the main part of Amazon commission rates in India. The fee varies by product category and is calculated as a percentage of the total selling price, including the item price, shipping, and gift wrap (if applicable). The referral fee starts at 2% and can increase depending on the category. Knowing this rate helps you set the right price and plan your profit margin better. In this guide, you will know how much Amazon charges for selling in India.How Referral Fee is CalculatedAmazon calculates the referral fee using this simple formula:Referral Fee = Item Price × Referral Fee PercentageLet’s look at an example.If you sell a Bluetooth speaker priced at ₹1,200 and the referral fee for the Electronics category is 7%, the fee will be:₹1,200 × 7% = ₹84So, Amazon will charge a referral fee of ₹ 84 on this sale.This makes it easy to estimate your costs before listing a product.Category-Wise Referral Fees of Some Common ProductsProduct CategoryItem Price Range (INR)Referral Fee (%)Automotive Tools & EquipmentUp to ₹3006.5%₹301–₹5007.5%Above ₹5008.5%Automotive Batteries & Air FreshenersUp to ₹5006.5%₹501–₹1,0007.5%Above ₹1,0008.5%Toys (Balloons, Soft Toys)—11%BooksUp to ₹2503%₹251–₹5004.5%₹501–₹1,0009%Above ₹1,00013.5%School Textbook BundlesUp to ₹2502%₹251–₹1,0003%₹1,001–₹1,5004%Above ₹1,5004.5%Clothing (Sweatshirts & Jackets)Up to ₹5008%₹501–₹1,00020%Above ₹1,00024%Pet FoodUp to ₹3005.5%₹301–₹1,00011.5%Above ₹1,00012.5%Beauty (Hair Care, Bath & Shower)Up to ₹3007.5%₹301–₹5005%Above ₹5008%Rugs & DoormatsAbove ₹1,0009–10.5%Home (Fragrances & Candles)Up to ₹5007.5%Above ₹50012.5%Kitchen (Glassware & Ceramics)Up to ₹3006%₹301–₹1,00011%Above ₹1,00012.5%BicyclesUp to ₹30011%₹301–₹5006.5%₹501–₹1,0007%Above ₹1,0006%Closing FeeThe closing fee usually starts at ₹5 and increases as the product price goes up. It ensures that Amazon covers transaction and payment processing costs.How the Closing Fee is CalculatedAmazon calculates the closing fee based on the item price and category.Total Closing Fee = Fee based on item price and categoryLet’s look at some examples to better understand this.Example 1: FBA Closing FeeIf you sell a book for ₹200 under the Books category (₹0–250 price range),Closing Fee = ₹12If you sell a Bluetooth speaker for ₹450 (₹251–500 price range),Closing Fee = ₹20Example 2: Easy Ship and Self-Ship Closing FeesIf you sell a book priced at ₹200 using Easy Ship,Closing Fee = ₹5If you sell a Bluetooth speaker for ₹450 using Self Ship,Closing Fee = ₹20Example 3: Self Ship (Books and Other Categories)If you sell a book for ₹200 under Self Ship (Books have a special rate for ₹0–300),Closing Fee = ₹6If you sell a pair of sandals for ₹200,Closing Fee = ₹20Weight Handling FeeAmazon also charges a Weight Handling Fee, also known as the shipping fee. This fee covers the cost of storing, packing, and delivering your product to the customer.The starting fee is ₹29 per item and varies based on weight, size, and shipping distance. The farther your product is or the heavier it is, the higher the shipping cost.Weight Handling Fee CalculationAmazon calculates the shipping fee based on the product's weight and the distance between the warehouse and the customer.Total Shipping Fee = Fee based on item weight and size + Fee based on shipping distanceHere’s how it works for different fulfillment options.Example 1: FBA ShippingIf an item weighs 700 grams (for example, a book) and is shipped via FBA from Delhi to Chandigarh (regional shipping),Shipping Fee = ₹40 + ₹17 = ₹57Example 2: Easy ShipIf an electronic item weighing 3.5 kg is shipped via Easy Ship from Bengaluru to Shillong (national shipping),Shipping Fee = ₹72 + ₹25 + (₹27 × 3) = ₹178Example 3: Heavy and Bulky ItemIf a chimney weighing 19 kg is shipped within Bengaluru city using Easy Ship,Shipping Fee = ₹192 + (₹5 × 7) = ₹227Self-Ship FeeIf you choose to self-ship, Amazon does not charge any shipping fees. You handle the delivery yourself or through a courier partner and pay their charges directly.Size GuidelinesAmazon uses its size chart to classify products as Standard or Heavy, or Bulky.An item is considered Heavy and Bulky if it meets one or more of these conditions:It is a large item such as a washing machine, TV, treadmill, refrigerator, or furniture.The package weight exceeds 22.5 kg.The maximum length, width, or height exceeds 183 cm.The circumference (Length + 2 × (Width + Height)) is more than 300 cm.The product is shipped in multiple boxes or needs carpenter installation.For regular-sized products, the minimum chargeable weight is 500 grams. For items above that weight, fees increase by 500 grams.Example:If you ship an 800-gram package to a regional address using Easy Ship, the shipping fee is ₹68. It includes ₹51 for the first 500 grams and ₹17 for the next 500 grams.Amazon calculates fees based on whichever is higher — actual weight or volumetric weight.Volumetric Weight (kg) = (Length × Width × Height) / 5000 (using measurements in centimeters)Other Important Amazon FeesPick and Pack Fee (FBA Only)The Pick and Pack Fee is charged for each unit sold through Amazon FBA. This fee covers the cost of picking the product from storage, packing it securely, and preparing it for shipment.₹14 per unit for standard-size items₹26 per unit for oversized or heavy and bulky itemsStorage Fee (FBA Only)Amazon charges a monthly storage fee for keeping your products in its fulfillment centers. The rate depends on how much space your inventory takes up.₹45 per cubic foot per monthThe longer your inventory remains in storage, the more you’ll pay. Efficient inventory management can help reduce this cost and improve profit margins.FBA Removal Fee (FBA Only)If you choose to remove or return your products from Amazon’s fulfillment center, you’ll be charged a removal fee per unit. These charges are exclusive of GST, and an 18% GST is applied on top of the listed fees.MeasurementStandard ShippingExpedited ShippingStandard Size₹10₹30Heavy and Bulky₹100₹100All the above fees are excluding GST. Amazon applies 18% GST on every charge.If you join special programs such as Amazon Launchpad or Amazon Business Advisory, you may incur additional service fees.Calculating Profit for Sellers on Amazon. inThe profit depends on many factors, such as product category, size, weight, and the fulfillment method you choose. Here’s a simple step-by-step way to find it.Step 1: Calculate the Referral FeeCheck your product’s category and apply the referral fee percentage.For example, if your item sells for ₹1,000 and the referral fee is 8%, then:Referral Fee = ₹1,000 × 8% = ₹80Step 2: Find the Closing FeeNext, check the applicable closing fee based on the price range and fulfillment type. If your closing fee is ₹20, note that amount for your total cost.Step 3: Calculate the Shipping FeeIf you use Fulfillment by Amazon (FBA) or Easy Ship, find the weight handling fee for your product. If you self-ship, use your courier partner’s actual delivery cost instead.Step 4: Add Other Fees (if applicable)If your product is stored in an Amazon fulfillment center or you use FBA services, include:Pick and Pack FeeStorage FeeFBA Removal Fee (if applicable)Now, calculate your total Amazon cost.Total Fee = Referral Fee + Closing Fee + Shipping Fee + Other FeesStep 5: Calculate Your ProfitSubtract the product cost and Amazon fees from the selling price.Profit = Item Sale Price – Product Cost – Total FeeExample CalculationLet’s say you sell a pair of wireless headphones for ₹1,500.ComponentAmount (₹)Referral Fee (7%)105Closing Fee20Shipping Fee70Pick & Pack Fee14Total Fee209Product Cost800Profit = 1,500 – 800 – 209 = ₹491 before taxesAmazon Payment CycleAmazon ensures timely and secure payments for all your sales. Once your order is delivered, you become eligible to receive payment 7 days after the delivery date. You can easily monitor your balance, settlements, and payment reports in your Amazon Seller Central account.You may also like to read - An Introduction to Amazon FBA: Fulfillment by AmazonSimplify Your Amazon Operations with WareIQSelling on Amazon can get complex with multiple fees, fulfillment challenges, and constant operational demands. WareIQ helps simplify it all.WareIQ is a Y-Combinator-backed eCommerce fulfillment platform that enables brands to manage and grow across D2C, marketplaces, quick commerce, and B2B channels.What WareIQ OffersPan-India Fulfillment NetworkOperate with confidence using Seller Flex and FAssured-compliant fulfillment centers across 12+ cities. Deliver to over 27,000+ pin codes through our reliable last-mile delivery partners.Multi-Channel Fulfillment PlatformIntegrate seamlessly with leading platforms like Amazon, Flipkart, Nykaa, Shopify, WooCommerce, Magento, and more. Manage orders, inventory, and analytics across all sales channels from one central dashboard.Inventory LogIQUse AI-driven inventory planning to reduce stockouts and automate replenishment. Keep your bestsellers always available.Smart Returns ManagementOur tech-enabled Returns QC Solution helps you capture HD media evidence of damaged or missing products. This reduces claim rejections and protects your revenue.Seller Support and ComplianceGet a dedicated account manager and help with APOB/PPOB registration, GST compliance, NDR & COD verification, and more.Why Sellers Choose WareIQ Over FBAWareIQ is a powerful alternative to Amazon FBA/FBF, offering greater flexibility and cost control.Scale easily: Expand or reduce storage space anytime, based on sales seasons or campaigns.Faster delivery: Store inventory closer to your customers for quicker regional fulfillment.Save more: Fulfill all orders from Amazon, other marketplaces, and your website using one shared inventory pool.Stay compliant: All WareIQ warehouses meet marketplace SLAs and seller program standards.Explore - Amazon FBA Preparation Services by WareIQFAQsWhat is the Amazon referral fee?It’s a commission Amazon charges on every product sold. The percentage depends on the product category and is calculated on the total selling price.How much commission does Amazon take in India?Amazon commission rates in India usually range from 2% to 20%, depending on the category and fulfillment type.What is the difference between FBA and Easy Ship?FBA (Fulfilled by Amazon) means Amazon stores, packs, and ships your products. Easy Ship allows you to store inventory yourself while Amazon handles delivery.How can I reduce my Amazon seller fees?You can reduce costs by optimizing packaging weight, selecting the right fulfillment type, and partnering with fulfillment providers like WareIQ to manage logistics efficiently.

December 16, 2025

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AEO Certification: Benefits for Indian Exporters

In global trade, credibility and compliance are key to building trust and efficiency. The Authorized Economic Operator (AEO) certification serves as a mark of reliability for businesses engaged in import and export activities. For Indian exporters, it signals a commitment to secure and transparent operations while unlocking faster customs clearances and international recognition. As trade volumes rise, the AEO program helps businesses stay competitive, minimize delays, and strengthen cross-border partnerships. This blog explores the AEO certification process, its tiers and benefits, and how it empowers Indianexporters to operate more efficiently in global supply chains.Overview of the Indian AEO ProgramThe Indian AEO Programme, launched in 2011, has evolved significantly over the years. It was designed to set robust standards that secure and facilitate the growing flow of goods in international trade. Today, the program boasts nearly 5,000 AEO entities —economic operators who actively collaborate with Indian Customs to maintain safety and security throughout the supply chain.In return, these entities enjoy a wide range of AEO certificate benefits, including faster cargo processing and clearance, deferred payment of duties, and privileges like direct port delivery or port entry. The program operates under the World Customs Organization (WCO) SAFE Framework of Standards, aligning India’s trade practices with international norms. Its primary objective is to enhance international supply chain security while facilitating the smooth movement of legitimate goods.AEO Eligibility Criteria for an EntityTo qualify for AEO certification, an entity must meet certain criteria. First, the business should have handled at least 25 documents, such as Shipping Bills and Bills of Entry, in the last financial year.The entity must also undertake customs-related work. This includes import, export, or other activities regulated by Indian Customs. Only companies actively involved in the international supply chain are eligible.AEO certification is granted only to a legal entity. Group companies or divisions of a company cannot apply separately. The business should have operated for at least three financial years. In some deserving cases, this requirement may be waived.The entity should maintain proper compliance and documentation with Indian Customs. Financial solvency and operational transparency are important factors.Benefits Associated with AEO Tier T1High facilitation: Faster processing and reduced inspections.DPD/DPE privileges: Direct Port Delivery and Direct Port Entry for shipments.Bank Guarantee (BG) reduction 50%: Lower financial burden on traders.Expedited investigation and dispute resolution: Quick resolution of customs queries.24x7 assistance on request: Support available at all sea-ports and airports.OSPCA once a year: Optional Self-Assessment of Customs Procedures for compliance check.ID cards and warehouse space: Easier identification and access to storage facilities.Email notifications: Alerts on shipment arrival and departure for better planning.Benefits Associated with AEO Tier T2AEO Tier T2 offers all Tier 1 benefits, plus additional privileges:Higher facilitation: Faster cargo processing and reduced documentation.Deferred duty payment: Pay customs duty at a later date.Mutual Recognition Agreement (MRA) benefits: Recognition in other countries.Waiver of seal verification: Reduced physical checks on shipments.Priority in scanning and assessment: Less waiting time at customs.25% Bank Guarantee (BG): Further reduction in financial compliance requirements.On-site inspection and stickers: Smooth access to facilities and warehouses.Refund or rebate in 45 days: Faster financial settlements with customs.Faster drawback processing: Speedy recovery of duties and taxes.Dedicated Client Relationship Manager (CRM): Personalized assistance for customs matters.OSPCA every 2 years: Optional Self-Assessment for compliance verification.Benefits Associated with AEO Tier T3Entities enjoy all Tier 2 benefits, plus additional advantages:Highest facilitation: Fastest cargo processing and minimal checks.Scanning only on intelligence: Shipments are scanned only if required.Reliance on self-certified copies: Reduced need for document verification by customs.No Bank Guarantee (BG): Complete waiver on financial compliance.Risk-based intervention by other departments: Inspections occur only on the basis of a genuine risk assessment.Refund or rebate in 30 days: Faster financial settlement for duties and taxes.OSPCA every 3 years: Optional Self-Assessment of Customs Procedures to ensure compliance.Download the guide to register for Tier T1, T2, and T3.Benefits for AEO-LO (Logistics Operators)AEO-LO applies to logistics service providers, custodians, customs brokers, and warehouse operators. Each category receives specific benefits: Logistic Service ProvidersWaiver of bank guarantee for trans-shipped goods.Facility to execute running bonds.Exemption from permissions for international trans-shipped cargo without customs escort.Custodians or Terminal OperatorsWaiver of bank guarantee under cargo handling regulations.Extended approval validity for custodians up to 10 years.Customs BrokersWaiver of bank guarantee under CBLR 2013.Extended license validity aligned with AEO status.Fee waiver for license renewal.Warehouse OperatorsFaster approval of new warehouses within 7 days.Waivers for antecedent verification, solvency certificates, and security requirements.Simplified processes for sensitive goods and warehouse extension approvals.Download the guide to register for LO Global Authorized Economic Operator (AEO) ProgramsAEO Programs in North AmericaAEO programs are run by customs authorities across North America. In Canada, it is Partners in Protection (PIP). In the United States, it is the Customs Trade Partnership Against Terrorism (CTPAT). In Mexico, it is called Authorized Economic Operator (AEO).These programs help pre-approved, low-risk businesses enjoy faster border clearance and reduced inspections. Members gain trade facilitation for importers, exporters, carriers, and supply chain partners. AEO companies benefit from faster border access, lower risk of delays, and protection of perishable goods.Mutual Recognition Arrangements (MRAs) allow members to receive similar benefits in partner countries. This improves global competitiveness and enhances market reputation. Businesses must provide consent for information sharing to access MRA benefits.EU AEO ProgramThe Authorized Economic Operator (AEO) program in the EU is based on a concept by the World Customs Organization (WCO). In 2005, WCO introduced the SAFE Framework of Standards to secure global trade and prevent international terrorism.In 2007, the AEO program was launched, creating a partnership between customs authorities and traders. EU economic operators that meet specific criteria can obtain AEO status and enjoy a range of benefits.There are three types of EU AEO authorizations:AEOC: Customs simplificationAEOS: Security and safetyAEOC/AEOS: Combination of bothThe program is open to all supply chain actors, including importers, exporters, manufacturers, and freight forwarders.Related -Certificate of Conformity in Global TradeHow WareIQ Supports AEO-Certified ExportersFor exporters, smooth supply chain operations are critical. WareIQ’s smart shipping solution helps businesses reduce costs caused by failed deliveries, weight reconciliation issues, and urgent escalations. The platform ensures efficient, timely, and compliant shipments across all channels.Key capabilities include:Multi-carrier engine for fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimize RTOs and NDRsSame/Next-day courier optionsSeamless integration with WMS, ERPs, and storefrontsCustom-branded tracking pages and precise delivery notificationsWareIQ also offers flexible fulfillment centers in 12+ cities, marketplace-compliant warehouses, centralized inventory management, and AI-led inventory planning.Also readFumigation Certificate: When Is It Required for Exports?FAQsHow long does it take to get AEO certification in India?The process usually takes 90 to 150 days from application to approval, depending on the tier and completeness of submitted documents.Does AEO certification require physical verification?Yes. Customs officers may conduct on-site verification to assess security standards and the accuracy of documentation before granting approval.Is AEO certification valid permanently?No. AEO certification is valid for three years and must be renewed to maintain an active status.Can small and medium exporters apply for AEO certification?Yes. SMEs are encouraged to apply for Tier 1 certification, which offers basic facilitation benefits and simpler requirements.Is there any application fee for AEO registration?No. The AEO application process is free, though businesses must meet all compliance and documentation requirements.

December 15, 2025

What Is Upselling and How to Use It Effectively

In today’s competitive landscape, businesses need smart ways to grow revenue and retain customers. One of the most effective methods is upselling. For example, when Netflix suggests upgrading to a higher plan for more screens or better video quality, that is a clear upsell. Unlike cross-selling, which offers related products, upselling focuses on increasing the value of the customer’s existing purchase. In this blog, you will learn what is upselling, how it differs from cross-selling, proven techniques, and real-world examples that businesses use to grow revenue while keeping customers happy.What Is Upselling?Upselling is a sales technique where a seller encourages customers to buy a higher-priced item, upgrade, or add-on to increase the total value of a sale. It focuses on offering options that truly improve the customer’s experience, such as premium versions or extended warranties. This approach helps customers see more value in what they purchase while helping businesses grow revenue.Many people mix up upselling and cross-selling, but they are different. Upselling suggests a better version of the same product, while cross-selling offers related items. For example, if a customer orders a medium pizza and is offered a large one for a small price difference, that is upselling.The psychology behind what is upselling and cross-selling lies in value and convenience. When customers feel they are getting more for a little extra, they are likely to upgrade. Effective upselling increases both average order value and customer satisfaction.Why Upselling Matters for BusinessesUpselling matters because it helps businesses grow faster without constantly having to find new customers. When companies upsell, they earn more from each existing customer by offering better versions or added features. This not only boosts revenue per customer but also strengthens relationships through improved value and trust.Effective upselling strategies make customers feel understood and cared for, which increases satisfaction and loyalty. It costs less to encourage a current buyer to upgrade than to acquire a new one. That’s why upselling is one of the most efficient ways to drive long-term growth.Both B2B and B2C businesses benefit from it. In B2B, upselling might involve offering advanced tools or premium support plans. In B2C, it could mean suggesting higher-end models or service packages. In every case, well-planned upselling strategies help companies grow profitably while keeping customers happy.7 Effective Upselling Techniques1. Premium Product UpgradesOne of the most common upselling strategies is offering premium product upgrades. This approach gives customers a clear “good-better-best” choice. The basic model sets the price anchor, while upgraded options highlight better features, quality, or performance. Seeing the differences side by side encourages customers to trade up for more value. Businesses use this method to increase revenue without alienating budget-conscious buyers. For example, Apple uses this technique effectively by offering “Pro” versions of its products, like the iPhone Pro and MacBook Pro. These premium models attract customers who value performance and design, turning a regular sale into a profitable upsell.2. Volume Discounts and Bulk OffersVolume-based pricing is another effective way to upsell customers. It rewards them for buying more by lowering the price per item. For instance, “Buy 2, Save 10%” or “Buy 3, Save 20%” deals motivate buyers to add more items to their cart. In B2B commerce, companies use bulk pricing to offer lower rates for larger orders, such as a clothing manufacturer buying 1,000 shirts at a discounted rate. Amazon applies this concept through its “Buy 3, Get 1 Free” offer, showing how simple upselling and cross-selling tactics can drive higher order values.3. Extended Warranties and Protection PlansAdding optional warranties or protection plans is a low-friction way to increase order value. Customers pay a small extra fee upfront for repair or replacement coverage, gaining peace of mind. For businesses, this upselling strategy generates high-margin revenue with minimal effort. The offer usually appears right after a customer decides to purchase, making it easier to accept. A great example is Best Buy, which offers protection plans on electronics.4. Personalization and CustomizationPersonalization helps products feel more meaningful to customers. Businesses can upsell by offering custom names, colors, or components that reflect personal taste. Even a small fee for personalization, such as engraving or special packaging, can raise perceived value and create emotional attachment. For instance, Spotify uses personalization in its upgrade offers by recommending premium plans based on listening behavior. Customers are more likely to pay for an ad-free experience tailored to their music preferences. 5. Time-Limited OffersCreating urgency is one of the simplest upselling strategies to prompt faster decisions. Time-sensitive upgrades or discounts trigger FOMO (fear of missing out) and drive conversions. Businesses can add a countdown timer to highlight how long an offer lasts. A SaaS company, for example, might send a message saying, “Upgrade to Premium at 20% off for the next 48 hours.” 6. Bundle PackagesBundling related products or services helps customers save money while increasing total purchase value. It’s a proven upselling strategy because it offers convenience and perceived savings. Instead of buying each product separately, shoppers can get an all-in-one solution for less. Businesses also benefit by selling multiple items at once and clearing inventory. Microsoft Office 365 is a strong example of this. The company combines Word, Excel, PowerPoint, and other tools into one affordable plan. 7. Subscription UpgradesSubscription-based upselling strategies focus on turning one-time buyers into loyal, repeat customers. By offering better features, faster delivery, or exclusive support, businesses can motivate customers to move to higher plans. These upgrades improve convenience and save money over time. For instance, Netflix encourages users to upgrade to its Ultra HD plan for a better viewing experience. Upselling Examples from B2B and B2C CompaniesCalendly uses a freemium model to introduce users to its full set of features. During the free trial, users experience the value of premium tools firsthand. This approach makes the upsell natural and helpful, not pushy. By giving early access to advanced scheduling features, Calendly shows customers what they’re missing and encourages them to upgrade. This strategy has helped the company grow to a $3 billion valuation.Squarespace connects with its audience emotionally. Instead of focusing only on logic, it reminds users why they started their website journey. Through personalized and inspiring emails, Squarespace encourages customers to upgrade to higher plans that unlock advanced design tools.Google Drive and Zapier use behavioral data for smarter upselling. Google Drive alerts users when they’re running out of storage, nudging them to upgrade. Zapier tracks product usage and sends personalized reminders before free limits expire. Upselling vs Cross-SellingMany businesses use upselling and cross-selling together to increase customer value. While upselling focuses on encouraging a customer to buy a better or higher-priced version of a product, cross-selling involves offering additional items that complement their main purchase.Cross-selling is a common strategy across industries such as finance, retail, and e-commerce. It means selling related products or services to existing customers. For example, a financial advisor may recommend a mutual fund in another sector to help clients diversify their portfolio. This type of sale benefits both parties when it adds real value. However, cross-selling can feel pushy if done without understanding the customer’s needs.Here’s how what is upselling and cross-selling differ:AspectUpsellingCross-SellingDefinitionEncouraging customers to buy a higher-end or upgraded version of a product.Suggesting related or complementary products to an existing customer.GoalIncrease order value by enhancing the original purchase.Expand product usage through add-ons or accessories.ExampleUpgrading from a standard to a premium software plan.Recommending antivirus software for a new laptop.How WareIQ Supports Growth for E-Commerce BrandsWareIQ is a Y-Combinator-backed eCommerce platform that helps brands scale through fast, reliable, and intelligent fulfillment. The platform supports every major sales channel, including D2C, marketplaces, quick commerce, and B2B.With a pan-India network of Seller Flex and FAssured-compliant centers across 12+ cities, WareIQ ensures quick deliveries through its 27,000+ pin code coverage. Its Multi-Channel Fulfillment Platform integrates with Amazon, Flipkart, Shopify, Magento, and more, helping businesses manage inventory, distributors, and online channels efficiently.Through Inventory LogIQ, WareIQ uses AI-led planning to reduce stockouts and automate replenishment. The platform also provides tech-enabled returns QC to prevent marketplace claim rejections and improve profitability.In the same way that upselling and cross-selling enhance customer value, WareIQ’s smart fulfillment tools help brands build loyalty by delivering better experiences.FAQsHow do upselling and cross-selling help in e-commerce?Both increase revenue by improving customer experience. Upselling boosts order value with premium options, while cross-selling adds complementary products to a cart.When should a business use upselling strategies?Use upselling strategies when customers show interest or are about to make a purchase, such as at checkout or during free trials.What tools can help automate upselling and cross-selling?CRM systems, AI-powered recommendation engines, and platforms like Shopify or WooCommerce plugins can automatically suggest upgrades.Can upselling work in B2B sales?Yes. In B2B, an upsell can mean offering advanced plans, analytics dashboards, or faster delivery options that add measurable value.

December 12, 2025

EDI in E Commerce: What It Is and How It Helps

EDI in e commerce, Electronic Data Interchange (EDI) is a system that enables the digital exchange of business data and documents between organizations. It allows information to move directly from one company’s computer system to another without manual intervention. EDI standards define how data is structured, including the order and placement of each element in a document. Businesses use EDI to share various documents such as purchase orders, invoices, shipment notices, loan applications, and requests for quotes.About ICES (Indian Customs EDI System)The Indian Customs EDI System (ICES) exchanges customs data electronically. It uses Electronic Data Interchange (EDI) to process clearance documents online.Trade, transport, and regulatory agencies share data through this system. These trading partners submit and receive customs information digitally.ICES operates at over 252 customs locations across India. It handles nearly 98% of India’s international trade.The system has two main parts:First, it automates customs offices for a paperless clearance process.Second, it connects traders and agencies through the ICEGATE portal.ICES receives and processes all incoming electronic messages. It also generates outgoing messages at each clearance stage.ICEGATE links customs with external agencies and banks. It also shares trade data with DGFT, DGCI&S, and RBI.The Single Window Interface for Facilitating Trade (SWIFT) simplifies procedures. It lets traders file documents and get approvals online. This system reduces clearance time and business costs.The E-Sanchit system supports paperless document submission. It cuts physical interaction and speeds up customs processing.Remote EDI System (RES)The Remote EDI System (RES) is a Windows-based application. It helps Custom House Agents, importers, and exporters prepare documents.Users can create Bills of Entry, Shipping Bills, and Reports. These are submitted to customs remotely via ICEGATE.The RES includes modules for import, export, and border ports. It also covers RES/Consol (Air) for air cargo declarations.EDI technology in e-commerce enables faster digital documentation. Stakeholders can file papers online and receive on-desk clearance. This system has greatly improved processing speed and accuracy.UN/EDIFACT (United Nations Rules for Electronic Data Interchange for Administration, Commerce and Transport)UN/EDIFACT stands for the United Nations rules for Electronic Data Interchange for Administration, Commerce and Transport. It defines globally accepted standards, directories, and guidelines for the electronic exchange of structured data between independent systems.The framework is approved and published by the United Nations Economic Commission for Europe (UNECE) under the United Nations Trade Data Interchange Directory (UNTDID). It is maintained through standardized procedures to ensure consistency and uniformity across global trade systems.Trade Facilitation and Early DevelopmentTrade facilitation involves the flow of information needed for moving goods internationally. Earlier, this process relied heavily on paper documents.Customs forms, invoices, and shipping documents were manually handled and exchanged. As a result, early efforts focused on simplifying and standardizing these paper documents.With technological progress, new ways to process and transmit information have become possible.The goal expanded beyond simplifying documents to creating standardized digital formats.In 1972, the UN/ECE Working Party on Trade Facilitation was established to improve data exchange in international trade.Standardization of Trade DocumentationThe United Nations Layout Key for Trade Documents played a major role in this transformation. It created uniformity in trade documents worldwide. This standardization reduced paper-handling costs and simplified document processing.The layout key defined consistent sizes, formats, and data fields for trade documents. It grouped key information such as parties, transport, references, and goods details.This organization made analyzing and digitizing data much easier. It also laid the groundwork for future EDI technology in e-commerce and logistics.Automation and Data ProcessingThe rise of automated data processing systems changed how trade data was handled. Businesses could now process information electronically and share it instantly.Instead of printing and mailing documents, data could be exchanged directly between systems. This improvement saved time, reduced manual errors, and increased accuracy.Automatic data exchange also required a new level of discipline. Unlike paper-based communication, electronic transmission requires strict data formats and codes. UN/EDIFACT established those uniform rules for presenting, transmitting, and interpreting trade data.The Need for Common StandardsEven with advanced technology, data exchange could fail without common standards. Different systems use different formats, which can cause errors or miscommunication.To solve this, UN/EDIFACT defined standard message structures and data elements. They made it easier for companies, customs, and logistics providers to share accurate data.Also read - How to Check Your Shipping Bill Status Online in India?GS1 EDI StandardsGS1 EDI (Electronic Data Interchange) provides global standards for electronic business messaging. It enables automation of common supply chain transactions between trading partners.GS1 EDI covers master data alignment, orders, deliveries, and financial settlements. It also supports transport, warehouse, and inventory management processes.The main users of GS1 EDI are retailers, manufacturers, material suppliers, and logistics providers. It helps streamline communication across the entire supply chain efficiently.As demand for digitization increases, companies often update their EDI systems. New legal, regulatory, or business requirements require frequent adjustments in EDI implementations.To reduce ambiguities and improve consistency, GS1 developed a semantic methodology. This approach standardizes business terms and transactional message content. It also supports emerging technologies, new syntaxes, and evolving market requirements.GS1 EDI Standards SetsGS1 currently maintains four complementary EDI standards:GS1 EDI Business Terms (Semantics / Dictionary) – Defines clear business terminology.GS1 EANCOM® – A widely used standard for EDI messaging.GS1 XML – Optimized for internet-based data exchange.GS1 UN/CEFACT XML – Supports structured global trade messages.These standards are implemented in parallel depending on user needs. XML-based standards are preferred for web and cloud-based transactions. The GS1 Global Office conducts annual surveys to monitor EDI adoption. The survey measures the use of standards across GS1 Member Organizations worldwide.ANX12 for North AmericaANX12, also known as X12, is the Electronic Data Interchange (EDI) standard used across North America. It defines how businesses exchange data electronically, supporting automation and accuracy in trade and communication.Chartered by the American National Standards Institute (ANSI), X12 has been active for over 40 years. It develops and maintains EDI standards and XML schemas that power global business operations.X12 standards are used across many industries, including healthcare, insurance, transportation, finance, government, and supply chain. Its members include both technology professionals and business process experts from these sectors.Members meet regularly to update and maintain EDI standards. These standards help businesses exchange information efficiently, reducing manual errors and paperwork.X12 enables electronic exchange of common business documents. These include orders, shipping details, invoices, payments, and cash applications. It supports over 320 transaction standards used in day-to-day business operations.The X12 organization is managed by a Board of Directors and a Steering Committee. The Board oversees strategic and business affairs. The Steering Committee manages the creation and publication of standards and related work.X12 StandardsX12 provides a flexible and evolving framework for EDI communication. It is built to handle millions of transactions daily with consistency and reliability.Consensus-BasedEvery X12 standard is developed through stakeholder consensus. This ensures it meets industry needs and remains transparent.InteroperableX12 standards work alongside other international standards, ensuring smooth data exchange across platforms.Syntax-NeutralThey are compatible with multiple data formats and syntaxes, making integration simple.Ready for the FutureX12 continues to evolve with business and technology changes. Its adaptive structure supports new tools, platforms, and global business requirements.X12 remains a core standard for EDI in e-commerce and other industries across North America.Smarter, Faster, and Scalable eCommerce Fulfillment With WareIQWareIQ is a Y-Combinator-backed, full-stack eCommerce fulfillment platform. It enables brands to simplify and scale their operations across multiple online and offline sales channels.The platform supports D2C, Marketplaces, Quick Commerce, and B2B distribution. With its pan-India presence, WareIQ helps eCommerce brands deliver faster, manage inventory better, and optimize fulfillment costs.Nationwide Fulfillment NetworkWareIQ operates a network of Seller Flex and FAssured-compliant centers across 12+ cities. It covers 27,000+ pin codes through trusted last-mile delivery partners, ensuring speed and reliability.Unified Multi-Channel Fulfillment PlatformThe system integrates easily with marketplaces like Amazon, Flipkart, Myntra, and Nykaa, as well as D2C platforms such as Shopify, Magento, and WooCommerce.It also connects with ERPs and WMS to centralize operations across distributors, flagship stores, and online channels. Built-in analytics tools allow sellers to track and improve performance.Smarter Inventory Planning with Inventory LogIQWareIQ’s AI-led Inventory LogIQ automates replenishment and reduces stockouts. It helps maintain balanced inventory across all sales channels.Tech-Enabled Returns ManagementThe platform offers a returns QC solution that captures and indexes high-definition media proof for damaged or missing items. This reduces disputes and prevents marketplace claim rejections.Comprehensive Seller SupportSellers get end-to-end enablement services, including dedicated account managers, GST and APOB/PPOB registrations, and NDR & COD verification.On-Demand, Flexible FulfillmentBrands can scale capacity up or down based on demand, especially during festive peaks. Inventory can be stored closer to customers to speed up deliveries and reduce logistics costs.Omnichannel EfficiencyWareIQ allows brands to fulfill all orders from their own website and marketplaces using a single inventory pool. This minimizes holding costs and maximizes efficiency.Centralized Tech PlatformWith one dashboard, sellers can manage orders, inventory, and shipments across all channels, ensuring smooth, data-driven operations.Also check - What Is e-SANCHIT: Simplifying Digital Document Submission in IndiaFAQs - EDI in E CommerceWhat is EDI in e-commerce?EDI in e-commerce stands for Electronic Data Interchange. It enables businesses to exchange documents like orders, invoices, and shipping details electronically between systems, reducing manual work and errors.What are the main types of EDI standards used globally?The major EDI standards include UN/EDIFACT for international trade, GS1 EDI for supply chain communication, and ANX12 (X12) for North America. Each defines standard message formats for smooth, automated data exchange.What are the advantages of EDI in e-commerce?EDI technology in e-commerce speeds up transactions, reduces paperwork, improves accuracy, and enhances communication between trading partners. It also lowers operational costs by automating routine processes.How does EDI help in customs and trade documentation?Systems like ICES and RES use EDI to process customs documents online. This reduces clearance time, minimizes physical paperwork, and ensures faster movement of goods across borders.How does WareIQ support e-commerce fulfillment?WareIQ offers a full-stack, tech-enabled fulfillment solution. It integrates with multiple e-commerce channels, automates inventory management, supports faster delivery, and helps brands manage orders from a single platform.

December 11, 2025

EAN Code: What It Is and Why You Need One

In retail and e-commerce, accurate product identification is essential. An EAN code helps businesses track and manage products globally. The EAN number, also called the European Article Number, is a unique identifier for each item. Understanding what is EAN code helps brands streamline inventory and sales. This system uses EAN barcodes to make scanning fast and accurate. In this blog, you will learn more about EAN code, different types, and how to obtain an EAN code.What is EAN?The European Article Number (EAN) is a globally recognized system for identifying retail products. Originally developed in Europe, it assigns a unique numeric code to every item, preventing duplication and ensuring accurate tracking across retail and e-commerce platforms.In retail, the EAN full form stands for European Article Number, which later evolved into the Global Trade Item Number (GTIN) in 2009, expanding its adoption worldwide under the management of GS1, the global standards organization.There are two main formats of the EAN number:EAN-8: Used for small products with limited labeling space.EAN-13: The standard format used across most countries for retail and logistics.What is an EAN Code?An EAN code is a unique product identifier used to track and manage retail items across global supply chains. It represents the European Article Number, now standardized as part of the Global Trade Item Number (GTIN) system, recognized worldwide.Visually, an EAN barcode consists of a series of black lines and white spaces with a numeric code beneath. This combination enables scanners to instantly identify products, streamlining billing, shipping, and inventory management.Unlike an SKU (Stock Keeping Unit), which is an internal identifier used by businesses to manage inventory, an EAN code is a universal identifier used across retailers, marketplaces, and distributors. Different Types of EAN CodesThe EAN barcode comes in several formats, each designed for specific use cases across retail and logistics.EAN-8This shorter EAN code contains eight digits and is used for small products where there’s limited space for labeling, such as cosmetics, stationery, or small packaged goods. EAN-13The most common format, EAN-13, features a 13-digit barcode used globally in retail. It evolved from the 12-digit UPC-A code used in North America. EAN-13 includes a country prefix, manufacturer code, product code, and a check digit to ensure accuracy. The data is encoded in a series of black and white lines that scanners read instantly.EAN-128 (GS1-128)Also known as GS1-128, this version is used beyond retail in warehousing, logistics, and supply chain management. It can include extra details like batch numbers, expiry dates, or weight, improving tracking and traceability.Related SystemsUPC-A and UPC-E are related barcoding formats used mainly in the US and Canada, compatible with global EAN systems.Importance of EAN CodeAn EAN code provides a unique identifier for every product. When selling different versions of the same product, such as different sizes, colors, or models, each version should have its own EAN number.If variations differ only in packaging, the same EAN code can be used for all versions. Proper use of EAN codes helps businesses maintain order and avoid confusion in product management.In retail stores, EAN barcodes are essential for products that need to be scanned at checkout counters. They allow cashiers to process items quickly and reduce errors during transactions. For e-commerce businesses, platforms like Amazon, Flipkart, and other online marketplaces require EAN codes to manage product listings. Using EANs prevents duplication and ensures that each product is listed correctly, which improves visibility and sales.EAN codes also enhance supply chain efficiency. They make it easier to track products from manufacturers to warehouses and retailers, ensuring accurate inventory management. EANs help maintain product authenticity and prevent duplication or fraud. They also support compliance with regulations, including requirements from the European Union.Structure of 13-Digit EANThe EAN-13 code is a 13-digit EAN number that uniquely identifies a product. Each part of the code has a specific purpose to ensure accurate tracking and identification across retail and logistics systems.Country Code (GS1 Prefix): The first three digits of the EAN code represent the GS1 member organization associated with the manufacturer. This identifies the country or region where the manufacturer is registered.Manufacturer Code: This section varies in length and is assigned to each manufacturer by the numbering authority. All products made by the same company share this code, allowing businesses and retailers to identify the source of the product easily.Product Code: Each product receives a unique code assigned by the manufacturer. This identifies the specific product within the company’s catalog. The length of the product code may vary depending on the manufacturer's code length.Check Digit: The last digit of the EAN barcode is the check digit. It verifies that the barcode has been scanned correctly. A mathematical formula calculates this number, ensuring data accuracy in retail and supply chain systems.For example, in the EAN-13 code 4006381333931:400 is the country code6381 is the manufacturer code33393 is the product code1 is the check digitHow to Obtain an EAN Code To obtain an EAN number, you must register with GS1, the organization that manages all rights and patents for GTIN barcodes. This applies to GS1 India for Indian businesses or the relevant GS1 organization in your country.Step 1: RegistrationVisit the GS1 website and complete the online registration. Submit required business documents such as PAN card, GST certificate, and a copy of your balance sheet. Pay the registration fee and specify the number of EAN codes needed. The process usually takes 7–10 working days.Step 2: Select Code TypeYou can choose a company prefix to generate multiple EAN numbers for different products or obtain a single GTIN for one product. This ensures global identification and proper tracking of your products in retail and e-commerce markets.Step 3: Assign CodesOnce your EAN codes are issued, link each code to the specific product details, including name, description, and dimensions.Renewal and SubscriptionGS1 codes are valid under an active subscription, which may require renewal depending on the organization’s rules. Maintaining your subscription ensures your EAN codes remain active and valid.Documents Required to Obtain EAN CodeTo apply for an EAN number, you need to submit the following documents to GS1:PAN card of the applicant company or proprietorCopy of balance sheetRequest letter for barcode allotment on the company letterheadProof of company status, such as a GST/VAT certificate, ROC certificate, or Memorandum of Association (MOA)Canceled cheque of the companyEAN/UPC BarcodesThe EAN/UPC family is designed for the high-volume scanning environment, making it suitable for the retail point-of-sale (POS). They are also used in general distribution and logistics. If these barcodes need to be scanned at both retail POS and in general distribution, their minimal sizes are increased.Applications for EAN/UPC barcodes are limited to:GTIN (Global Trade Item Number)Restricted Circulation Numbers (RCN)CouponsIn-store codesSymbolCapacityOmnidirectional?GS1 KeysAttributes?UPC-A12 Numeric Yes GTIN-12 No EAN-1313 Numeric Yes GTIN-13 No UPC-E12 NumericYes GTIN-12 No EAN-88 Numeric Yes GTIN-8 No WareIQ: Smart Full-Stack eCommerce FulfillmentWareIQ is a Y-Combinator-backed full-stack eCommerce fulfillment platform offering multi-channel solutions for D2C, marketplaces, quick commerce, and B2B (general and modern trade). It helps brands streamline inventory, orders, and shipping across all sales channels.The platform provides a Pan-India network of Seller Flex and FAssured-compliant fulfillment centers across 12+ cities, supported by shipping partners covering over 27,000 pin codes. Its multi-channel fulfillment platform integrates with marketplaces like Amazon, Flipkart, Myntra, Nykaa, D2C platforms such as Shopify, Magento, WooCommerce, WMS, and ERPs, enabling brands to manage inventory, orders, and analytics from a single system.WareIQ’s Inventory LogIQ uses AI to plan inventory, minimize stockouts, and automate replenishment. The tech-enabled returns QC solution captures and stores HD media of returned products to reduce claims rejections. Brands also receive seller support, including account management, APOB/PPOB registration, GST registration, and COD verification.The smart shipping solution ensures fast deliveries, reduces RTOs and NDRs, and offers same/next-day options. With multi-carrier integration, shipping badges, custom tracking pages, and automated workflows, WareIQ optimizes fulfillment and enhances the customer experience while minimizing operational costs.ConclusionHaving an EAN code is vital for smooth retail and e-commerce operations. The EAN number ensures every product is unique and easily traceable. Understanding what is EAN code is and what is EAN number is helps avoid errors and confusion. EAN barcodes simplify scanning at checkout and improve inventory management. The EAN full form in retail or the EAN number full form represents a globally recognized standard. Businesses that use EAN numbers can track products efficiently, prevent duplication, and meet marketplace requirements. Proper use of EAN codes ensures accuracy, authenticity, and better operational performance.Suggested -The Importance of Shipping Barcodes: Streamlining Your Supply ChainFAQsWhat is EAN full form?EAN's full form is European Article Number.What is an EAN code?An EAN code is a unique barcode that identifies a product globally.Is the EAN code the same as a barcode?EAN codes are represented as barcodes, but the number identifies the product.What is the difference between EAN and UPC?EAN is used internationally; UPC is popular in the US.Do all products need an EAN code?Not all products require it, but marketplaces and global trade often do.

December 10, 2025

Product Packaging: Best Practices for Small Businesses

Product packaging does more than protect an item. For small businesses, well-designed product packaging helps stand out in competitive markets, build trust create memorable customer experiences. The right product packaging boxes and product packaging materials also ensure safety during shipping and retail display. This guide explores creative product packaging examples and essential Amazon FBA packaging requirements to help small businesses design packaging.Standout Packaging Ideas for Small BusinessesGood product packaging can make a small business stand out. It helps attract customers, improves brand recall, and adds value to the product. Here are ten simple and effective packaging ideas that small businesses can use:Focus on Branding With Personalized MaterialPersonalized packaging helps customers remember your brand. Use branded product packaging boxes with your logo and color theme. Add small touches like printed tissue paper, brand stickers, or thank-you cards. These details make your product packaging material feel premium and personal. Use Eco-Friendly MaterialsEco-friendly product packaging materials show that your brand cares about the environment. Choose recyclable cardboard, biodegradable paper, or compostable mailers. Replace plastic fillers with shredded paper or cornstarch peanuts. Sustainable product packaging not only reduces waste but also appeals to customers who prefer responsible brands.Stick to MinimalismMinimalist packaging is simple, clean, and cost-effective. Use solid colors, simple typography, and limited graphics. This approach highlights the product instead of overwhelming it. Minimalist product packaging examples show that elegance doesn’t require complexity. Many small brands use plain boxes with subtle branding to create a refined look.Tell Your Brand Story Through DesignPackaging can tell your story without words. Use colors, fonts, and visuals that reflect your values and mission. For example, a handmade brand can highlight its craftsmanship through hand-drawn illustrations. Effective product packaging and labeling should communicate the brand's values at a glance.Add Interactive Elements (QR Codes, Thank-You Notes)Make your packaging more engaging with small interactive touches. Add QR codes that link to your website, social media, or tutorials. Include thank-you notes or discount codes inside the box. These elements show customers that you value them.Opt for Custom Shapes or TexturesCustom designs make your packaging stand out instantly. Try unique shapes, such as hexagonal product packaging boxes, or textured surfaces with matte, linen, or embossed finishes. Even a small design twist can make a product package feel exclusive.Focus on FunctionalityGood design is not only about looks but also ease of use. Customers prefer packaging that’s easy to open, store, and reuse. Use tear strips, magnetic closures, or resealable bags for convenience. Limited Edition or Seasonal PackagingSeasonal packaging helps boost sales during holidays or events. Change your product packaging labels or box colors for occasions like Diwali, Christmas, or Valentine’s Day. Small tweaks like a festive ribbon or sticker can make your product feel special.Include Reusable or Multi-Purpose PackagingCustomers appreciate packaging they can use again. Try tote bags, glass jars, or boxes that double as storage. Using durable product packaging material adds perceived value and reduces waste. It also keeps your brand visible long after purchase. Create a Premium Unboxing ExperienceA memorable unboxing can turn a customer into a loyal fan. Use layered product packaging with tissue paper, inserts, or small freebies. Organize each layer so it reveals the product step by step.Amazon FBA Product Packaging RequirementsGeneral Packaging RequirementsInventory sent to an Amazon fulfillment center must not have theft-prevention devices. Each product needs a unique FNSKU that matches only one item type or condition. Every unit must have a clear, scannable barcode placed on a flat surface. Cover or remove all other visible barcodes to prevent scanning errors during check-in.Loose ProductsEach item, including multi-volume book sets, must arrive as a single, secure package. Amazon won’t accept products that require assembly, such as unassembled wheelbarrows. Items in loose sleeves or pouches must be sealed in a bag or secured with removable tape. Footwear must be packed in boxes or poly bags and fully enclosed.Sold as a SetProducts sold as sets must stay together. Add a clear label stating “Sold as set,” “Ready to ship,” or “Do not separate.” Assign a unique ASIN for the full set. Hide or cover barcodes on individual items to ensure the set is received and sold as one complete unit.Boxed UnitsBoxed units must be six-sided and securely closed using tape, glue, or staples. They shouldn’t collapse under moderate pressure. If boxes have openings or perforations, the product must pass a 3-foot drop test. If it fails, place it in a sealed poly bag with a suffocation warning.Poly-Bagged UnitsPoly bags with openings of 5 inches or more need a visible suffocation warning printed or labeled on the bag. The bag must be at least 1.5 mil thick, transparent, fully sealed, and have a scannable barcode. The bag shouldn’t extend beyond 3 inches beyond the product’s size.Bubble WrapProducts wrapped in bubble wrap must be tightly sealed and labeled with a scannable barcode. They must pass a 3-foot drop test, flat on each side and a corner, without damage. Bubble wrap is required for fragile, heavy, or dense items that could break or damage other products during shipping.Over-BoxingOver-boxing adds an extra protective box around the product when needed for safety. Items over 10 lb should use double-wall corrugated boxes. It’s required for fragile products that fail drop tests, hazardous liquids in glass containers over 4.2 oz, and vinyl records that need extra protection.Mattress Packaging GuidelinesMattresses must be packed in strong corrugated boxes and correctly categorized during ASIN setup. When creating listings, classify them under Home & Kitchen > Furniture > Bedroom Furniture > Mattresses & Box Springs > Mattresses. Following these steps prevents rejection at Amazon fulfillment centers.Case-Packed ProductsAll products in a case pack must have the same SKU, condition, and quantity. Each box must contain the same unit count, up to 150 units per case. Amazon scans one unit per case for inventory. Larger boxes with multiple case packs must be separated before shipping.Expiration DatesExpiration dates must be printed as MM-DD-YYYY or MM-YYYY. If shown differently, cover it with a correct-format sticker. Display expiration dates in at least 36-point font on both the outer box and each unit. Perishable items are not allowed. Lot numbers alone don’t replace expiration dates.How WareIQ Simplifies Product Packaging for Small BusinessesWareIQ is a Y-Combinator-backed eCommerce platform that provides full-stack fulfillment and shipping solutions for D2C brands, marketplaces, quick commerce, and B2B channels. It helps small businesses manage product packaging, labeling, storage, and delivery with accuracy and speed.WareIQ operates a pan-India network of Seller Flex and FAssured-compliant fulfillment centers across 12+ cities. It also offers last-mile delivery through shipping partners covering over 27,000 pin codes. Businesses can store inventory closer to customers, reduce delivery times, and manage festive-season surges with flexible storage capacity.Its multi-channel fulfillment platform offers plug-and-play integrations with major marketplaces like Amazon, Flipkart, Myntra, and Nykaa, as well as D2C platforms such as Shopify, Magento, and WooCommerce. WareIQ also connects with ERPs and WMS systems to unify order and product packaging workflows.With Inventory LogIQ, an AI-powered inventory planning tool, WareIQ automates replenishment and minimizes stockouts. It also provides a tech-enabled returns QC solution to record HD evidence of damaged or missing products, reducing claim rejections.Small businesses benefit from dedicated account managers and support services, including APOB/PPOB setup, GST registration, and COD verification. All WareIQ warehouses meet marketplace standards, ensuring compliance with FBA, FAssured, and Seller FlexExplore - Amazon FBA Preparation ServicesFAQsWhat are the most cost-effective packaging options for small businesses?Corrugated cardboard boxes, kraft paper, and reusable mailer bags are affordable and durable. Buying in bulk and choosing standard sizes also helps reduce packaging costs.How can small businesses test the durability of their packaging?You can perform a simple drop test by dropping the packaged item from different angles and heights. Check for any dents, tears, or internal damage before finalizing the packaging design.Can small businesses customize packaging without high minimum orders?Yes. Many local printers and online vendors offer low minimum order quantities for custom boxes, stickers, and labels. Digital printing also makes small-scale customization affordable.What should be included on product packaging labels?Labels should display the product name, brand, quantity, ingredients or materials, manufacturing details, and any regulatory information required for the product category.How can packaging support brand sustainability goals?Using recycled materials, biodegradable fillers, and eco-friendly inks reduces environmental impact. Offering reusable or returnable packaging options also helps build a greener brand image.

December 09, 2025

GST Exempted Goods: Complete Updated List [2026]

The Goods and Services Tax (GST) applies to most goods and services in India, but some are completely exempt. These GST-exempted goods include essential items such as food, books, and healthcare products that the government keeps tax-free to make them more affordable. Understanding which goods fall under this category is important for both consumers and sellers, especially those operating on platforms like Amazon. In this blog, we’ll explore the latest list of GST Exempted Goods, how exemptions work, and what sellers need to know to stay compliant while benefiting from these exemptions.The GST Council: The Authority Behind ExemptionsThe GST Council decides which goods and services are taxable or exempt under GST. It also suggests changes to GST laws, rates, and rules for both the Center and States.The Council updates the exemption list regularly. For example, in its 36th meeting, it reduced GST on electric vehicles from 12% to 5% and exempted electric buses carrying over 12 passengers. In the 55th meeting, it was clarified that vouchers are not subject to GST.The Council also works on improving GST systems, such as the Invoice Management System (IMS), and recently approved a full GST exemption on gene therapy. These steps show how the Council ensures that GST-exempt goods and GST-exempt items align with national priorities.Types of GST Exemptions in IndiaGST exemptions in India are divided into different types based on their purpose and conditions.Absolute exemptions apply to goods or services that are completely free from GST, such as fresh fruits, vegetables, or education services.Conditional exemptions require specific conditions to be met, like using goods for charitable or government-approved purposes.Partial exemptions allow reduced tax rates on selected items. These help make essential goods more affordable and boost consumption.Supplier-based exemptions apply to small businesses or non-profit organizations. They help reduce their tax load and support growth.Supply-based exemptions cover essential services like healthcare and education to keep them accessible for everyone.The government maintains a non-GST product list that includes all GST-exempted products and GST-free products. This list is reviewed regularly to ensure it stays relevant and continues to support social and economic priorities.Read more - Types of GST and How They Impact Your Business?Reasons for Exemption Under GSTThe government provides GST exemptions for several important reasons.Affordability is one of the main goals. By removing GST on essential goods and services, such as food and healthcare, the government ensures these items remain accessible to everyone.Social welfare is another key factor. Exemptions on healthcare, education, and public services help improve the overall quality of life.Some exemptions support specific sectors, like small businesses, by reducing their compliance burden and encouraging growth.In addition, certain exemptions simplify tax administration. By excluding complex or low-value transactions, the system becomes easier for both businesses and tax authorities to manage.Updated List of GST Exempted Goods (As per Notification No. 10/2025-Central Tax)The Government of India released Notification No. 10/2025-Central Tax (Rate) on 17 September 2025, effective from 22 September 2025, under the Central Goods and Services Tax Act, 2017.This notification replaces the earlier 02/2017 notification and updates the list of GST-exempted goods based on recommendations from the GST Council.These exemptions apply to goods considered essential for daily life, social welfare, and sustainable growth. Below is a simplified list of GST-exempted products based on the categories mentioned in the official notification.Common GST Exempted Goods with HSN CodesS. No.Description of GoodsHSN Code / Chapter1Live animals, including bovine, sheep, goats, and poultry0101–01062Fresh or chilled meat and fish (not pre-packaged or labeled)0201–03093Fresh milk, curd, lassi, and buttermilk0401–04034Paneer and chenna (unbranded)04065Fresh fruits, vegetables, and legumes0701–08096Seeds for sowing and oilseeds of seed quality127Rice, wheat, maize, and pulses (unbranded)1001–10088Jaggery (gur), khandsari sugar, and rab1701–17029Puffed rice, chira, murki, and papad1904–190510Bread, roti, paratha, khakhra, and pizza base1905, 210611Tender coconut water (not pre-packaged)200912Water (excluding mineral or aerated)220113Animal feed, poultry feed, de-oiled cake2301–230914Salt (including seawater)250115Electricity (electrical energy)271616Organic manure310117Newspapers, printed books, and children’s coloring books4901–490318Human blood and contraceptives3002, 300619Firewood, charcoal, and wood products4401–440220Hearing aids and indigenous handmade musical instruments9021, 92Category-wise GST Exempted ItemsA. Food and Agricultural ProductsFresh fruits, vegetables, potatoes, and onionsRice, wheat, pulses, and millets (non-packaged)Milk, curd, lassi, paneerJaggery and puffed riceTender coconut waterSeeds for sowing and oilseedsB. Health and Medical SuppliesHuman blood and its componentsAll types of contraceptivesGene therapy and listed life-saving drugs (Annexure I)Hearing aids and parts for their manufactureC. Education and PublicationsPrinted books and Braille booksNewspapers, journals, and periodicalsChildren’s coloring and drawing booksEducational materials like maps and atlasesD. Handicrafts and Cultural ItemsHandmade musical instruments (Annexure II)Earthen pots, clay lamps, idols, and khadi productsBangles made of glass, shellac, or lacIndian National FlagE. Environment and Rural GoodsOrganic manure and bio-wasteMunicipal waste and sewage sludgeFirewood, charcoal, and bamboo productsPlates and cups made from leavesBrooms, brushes, and jhadoo materialsF. Religious and Traditional ItemsPrasadam supplied by temples, mosques, churches, etc.Puja samagri such as rudraksha, tulsi mala, vibhuti, roli, and chandan tikaWooden khadau and diyasList of Drugs or Medicines (Annexure I)Some of the major GST-exempt items under life-saving medicines include:Gene Therapy, Agalsidase Beta, Onasemnogene Abeparvovec, Imiglucerase, Daratumumab, Avelumab, Emicizumab, and Risdiplam.List of Indigenous Handmade Musical Instruments (Annexure II)The notification exempts over 130 traditional Indian instruments, including:Sitar, Sarod, Tabla, Dholak, Mridangam, Veena, Santoor, Shehnai, Bansuri, Nadaswaram, Pakhavaj, Ghatam, Manjeera, and Harmonium.Download the full listGST Exempted Categories on AmazonAmazon offers a wide range of GST-exempted products that fall under government-approved categories. These exemptions are guided by Section 6 and Section 11 of the GST Act, which define the rules and reasons for exemption.Types of GST Exemptions for Goods on AmazonAbsolute Exemption:These are unconditional. The product remains GST-free no matter who sells or buys it, and regardless of whether it’s an interstate or intrastate sale.Example: Fresh fruits, milk, or printed books.Conditional Exemption:These apply when specific conditions mentioned in the GST Act or official notifications are met.Example: Jaggery or pulses are exempted only when sold unbranded or unpackaged.List of GST Exempted Product Categories on Amazon1. Food and Grocery ItemsCereals like rice, wheat, and maizeFresh fruits and vegetables (not frozen or processed)Edible roots and tubersFish and meat (unpackaged or unprocessed)Tender coconut and jaggeryUnprocessed tea leaves and unroasted coffee beansSeeds, ginger, turmeric, and betel leavesSalt and papadNon-branded flour, gram flour, and natural honeyBread and puffed riceEggs and dairy products (milk, curd, lassi, buttermilk, paneer)Aquatic, poultry, and cattle feedOrganic supplements and animal feed additives2. Raw Materials and TextilesRaw silk, jute, and woolSilk waste and khadi fabricCotton is used in khadi yarnHandloom fabrics and raw jute fiberFirewood and charcoal3. Tools and InstrumentsHearing aids and devices for the differently abledManually operated agricultural tools like spades, hoes, and shovelsHand tools used in horticulture and farmingHandmade Indian musical instruments like sitar, tabla, and veena4. Educational and Miscellaneous GoodsBooks, maps, newspapers, and journalsNon-judicial stamp papers and postal itemsChildren’s drawing or coloring booksEducational aids and chartsLive animals (except horses)Beehives, human hair, and bloodGlass or shellac bangles, chalk sticks, and contraceptivesEarthen pots, idols, bindi, kumkum, and pooja samagriIndian national flag and Gandhi topiOrganic manure and vaccinesExplore - Logistics GST Rate: What You Need to Know for Freight and TransportSimplify E-commerce Compliance and Fulfillment With WareIQWareIQ is a Y-Combinator-backed eCommerce fulfillment platform that simplifies multi-channel logistics across D2C, Marketplaces, Quick Commerce, and B2B.The company operates a pan-India network of Seller Flex and FAssured–compliant fulfillment centers across 12+ cities and partners with top courier companies to deliver across 27,000+ pin codes.Its multi-channel fulfillment platform integrates easily with Amazon, Flipkart, Myntra, Nykaa, Shopify, Magento, and WooCommerce. Brands can manage inventory, distributors, flagship stores, and online orders from one dashboard with real-time analytics.With Inventory LogIQ, WareIQ uses AI to predict demand, reduce stockouts, and automate inventory replenishment. It returns QC solution records and stores high-quality evidence of damaged or missing products, helping prevent marketplace claim rejections.Sellers also receive dedicated support for GST registration, APOB/PPOB filings, COD verification, and NDR resolution.Suggested - Transportation Charges GST Rate: What You Must KnowFAQsWhat is the difference between GST-exempt goods and zero-rated goods?GST-exempt goods are not taxed at all, while zero-rated goods are taxed at 0%. In zero-rated goods, sellers can still claim input tax credit on their purchases, but this is not allowed for exempt goods.Can GST-exempt goods later become taxable?Yes. The GST Council regularly reviews exemptions. If the government decides that an item no longer needs exemption, it can be moved to a taxable category through a new notification.Do I need to issue an invoice for GST-exempt sales?Yes. Even if a product is exempt, sellers must issue a Bill of Supply instead of a tax invoice. This document records the sale without charging GST.Are GST exemptions the same across all states?Generally, yes. GST is a unified national tax. However, certain state governments may have additional exemptions under SGST for local products or sectors.Can I claim input tax credit on purchases used for exempt supplies?No. If you sell only GST-exempt goods, you cannot claim input tax credit on inputs or services used to make those supplies.

December 08, 2025

RCMC Certificate: Importance for Exporters

The RCMC certificate, or Registration-cum-Membership Certificate, is an official document that certifies an exporter’s registration with an authorized trade body in India.In simple terms, what is RCMC in export? It is proof that your business meets the government’s export compliance requirements. Holding an RCMC validates your company’s eligibility to participate in regulated trade activities and access export incentives.RCMC is issued by Export Promotion Councils (EPCs), Commodity Boards, or recognized authorities under the DGFT. These bodies monitor export performance, ensure compliance with policies, and provide membership benefits to registered exporters.This article will guide exporters through the benefits of RCMC, the registration process, amendment steps, and renewal instructions, helping businesses stay compliant while optimizing their export operations.Benefits of the RCMC Certificate for ExportersOfficial Recognition in Global TradeAn RCMC certificate officially identifies your business as a registered exporter under India’s trade framework. It assures global buyers and authorities that your operations meet the government’s compliance standards.Access to Government IncentivesExporters with an RCMC can access a wide range of Foreign Trade Policy incentives, including duty drawbacks, tax exemptions, and export subsidies. These benefits help reduce financial burdens and enhance market competitiveness.Simplified Licensing ProceduresThe RCMC certificate simplifies the process of acquiring export-related licenses and permits. As your business is already verified by an authorized council, additional approvals often take less time.Opportunities for Market ExpansionRCMC holders gain access to market development assistance programs that promote participation in global trade fairs and exhibitions. These initiatives help exporters showcase products, connect with buyers, and strengthen their global presence.Introduction to the DGFT PortalThe Directorate General of Foreign Trade (DGFT) manages India’s export and import policies through its online portal. This platform enables exporters and importers to complete trade-related procedures digitally, including the RCMC registration process.To simplify compliance, DGFT introduced the e-RCMC module as part of its IT Revamp project. The goal is to offer a seamless, paperless experience for businesses applying for or managing their Registration-cum-Membership Certificates.Launched officially on 6 December 2021 under Trade Notice No. 27/2021-2022, the module allows the electronic filing of RCMCs or Registration Certificates (RCs) through a common digital platform. It replaced manual paperwork with a streamlined online process accessible to all exporters.The e-RCMC module offers several key features:Paperless and real-time issuance of RCMC certificates.Auto-authentication of IEC details to ensure consistency across the trade ecosystem.Integration with CBDT and MCA systems for automatic PAN and DIN validation.Auto-generation of invoices reduces manual errors.Single source of information for exporter credentials and updates.Logging Into the New DGFT PortalExporters must have an active internet connection and valid login credentials, including a registered User ID and password created during the IEC registration process, to access the DGFT portal.Follow these steps to log in to the system:Visit https://www.dgft.gov.in.Click on Login or New User Registration if you are accessing it for the first time.Enter your User ID, password, and the captcha code displayed on the screen.Click on the Login button to access your account.Once logged in, the Dashboard displays essential details, including your IEC number, its validity, and current status. You can also view issued authorizations and pending applications directly from this panel.The left pane of the dashboard shows important FYA notifications and system updates related to export documentation and RCMC management. Exporters can navigate to the RCMC registration process section from this dashboard to apply, renew, or download their RCMC certificate.Registration-cum-Membership CertificateThe Registration-cum-Membership Certificate (RCMC) is an official document that verifies an exporter's status as a registered member of an authorized trade body in India. It is issued to exporters dealing in products governed by a specific Export Promotion Council (EPC), Commodity Board, or Development Authority.While applying for an RCMC certificate, exporters must declare their main line of business. Based on this, they need to register with the council that manages the export of those products.If the product category does not fall under any specific EPC or Board, the Federation of Indian Export Organizations (FIEO) issues the certificate. For multi-product exporters with headquarters in the North-Eastern States, RCMC may be obtained from the Shellac & Forest Products Export Promotion Council, except for items managed by APEDA, Spices Board, or Tea Board.Exporters of handicrafts and handloom products from Jammu & Kashmir can obtain RCMC from the Director, Handicrafts, Government of Jammu & Kashmir.The RCMC certificate is valid for five financial years, starting on 1 April of the licensing year in which it was issued and ending on 31 March of the fifth year. The certificate remains valid unless otherwise specified by the issuing authority.Issuance of Registration-cum-Membership Certificate: Step-by-StepFollow the steps below to complete your RCMC registration process:Step 1: Log In to the DGFT PortalVisit https://www.dgft.gov.in.Click on the Login button at the top-right corner.Enter your Username, Password, and CAPTCHA code, then click Login.Once logged in, you’ll see a dashboard that displays your basic details, such as your IEC Number, validity status, and issued authorizations.Step 2: Navigate to the e-RCMC SectionFrom the main menu, go to Services → e-RCMC → Apply for e-RCMC.You can either click Start Fresh Application or continue with an existing draft by selecting Proceed with Existing Application.Step 3: Update and Verify Profile DetailsThe system will prompt you to declare whether your profile is updated.Select Yes, ensure your profile information is accurate, and then click Save & Next to proceed. Step 4: Fill in RCMC DetailsUnder the RCMC Details section, choose the relevant Export Promotion Council (EPC) or Commodity Board (CB).Provide the required details related to your product category and business line.If any RCMC certificate fees were already paid outside the DGFT portal, select Yes under the “Fee Details” option, and enter the payment details, including the transaction number, date, and amount.Step 5: Specify Office, Branch, and Product InformationSelect the office of submission and the branch through which you are applying for the RCMC certificate.Add details of export products or services by clicking Add to save each entry.Next, provide the contact details of authorized representatives or department heads for the chosen council, then click “Add Details”.Step 6: Enter Company and Export InformationUnder the Other Information section, specify the countries your company exports to, add your firm profile, and mention your website URL.After reviewing all information, click Save & Next.Step 7: Upload Required AttachmentsGo to the Attachments section. Upload documents such as:IEC certificatePAN cardGST registrationBank certificate or canceled chequeUpload files from your system, click Upload Attachments, and then Save & Next to proceed.Step 8: Accept the DeclarationRead through all declaration statements displayed on the screen.Check the box to confirm your acceptance, enter your place of signing, and click Save & Next.Step 9: Review Application SummaryThe system will show your filled-out application and uploaded documents under the Application Summary tab.Verify all details before final submission.When ready, click Sign to digitally sign the application.Step 10: Complete PaymentClick Payment for RCMC to proceed to the payment gateway.Enter payment details and click Submit.After the transaction, a Payment Response Page will appear, displaying the transaction ID.Click Submit again to confirm.Why WareIQ is best for End-to-End Fulfillment and Shipping SolutionsWareIQ is a Y Combinator-backed full-stack eCommerce platform offering multi-channel fulfillment for D2C brands, marketplaces, quick commerce, and B2B operations.Pan-India Fulfillment NetworkWareIQ operates a network of Seller Flex and FAssured-compliant fulfillment centers across 12+ cities. It partners with multiple carriers to ensure last-mile delivery to 27,000+ pin codes, enabling fast, reliable shipping across India.Multi-Channel Fulfillment PlatformThe platform integrates seamlessly with marketplaces (Amazon, Flipkart, Myntra, Nykaa), D2C stores (Shopify, Magento, WooCommerce), WMS, and ERPs. It supports fulfillment across distributors, flagship stores, and eCommerce channels while providing analytics to monitor operational performance.Inventory LogIQAn AI-led inventory planning solution that minimizes stockouts, automates replenishment, and optimizes multi-channel inventory for consistent product availability.Returns and Quality ControlTech-enabled returns QC captures and stores HD evidence of damaged or missing products. This reduces marketplace claim rejections and ensures accurate return handling.Seller Enablement and SupportWareIQ provides end-to-end support, including dedicated account managers, APOB/PPOB registrations, GST registration, NDR & COD verification, and prompt resolution of urgent operational issues.Smart Shipping SolutionsWareIQ’s platform helps minimize RTOs, fake delivery attempts, and weight reconciliation errors. Key capabilities include:Multi-carrier engine for fast deliveries to 24,000+ pin codesControl Tower & automated workflows to reduce NDRs & RTOsSame/Next-day delivery optionsIntegration with WMS, ERPs, and storefrontsShipping badges to show accurate Estimated Delivery Dates (EDD)Custom-branded tracking pages and notifications for enhanced customer experienceFAQsWhat is RCMC in export?RCMC stands for Registration-cum-Membership Certificate. It is issued to exporters as proof of registration with an authorized trade body.Is RCMC mandatory for export?RCMC is not required for all exports. However, it is essential to claim government export incentives and participate in EPC schemes.Who issues the RCMC certificate?The certificate is issued by Export Promotion Councils (EPCs), Commodity Boards, or recognized authorities under the DGFT.How to download the RCMC certificate?Once approved on the DGFT portal, exporters can log in to their dashboard, track application status, and download the RCMC certificate electronically.What is the validity and renewal process for RCMC?An RCMC is valid for five financial years. It can be renewed online through DGFT by updating details and paying applicable fees.

December 05, 2025

EPCG Scheme: Benefits and Eligibility Explained

The Export Promotion Capital Goods (EPCG) Scheme aims to help Indian manufacturers and service providers stay globally competitive. It allows them to import capital goods at zero customs duty to produce high-quality goods and services for export.The EPCG full form in customs is Export Promotion Capital Goods. This is an export incentive scheme in India that allows businesses to import machinery and equipment for pre-production, production, and post-production. These imports are exempt from IGST and Compensation Cess as notified by the Department of Revenue.Alternatively, companies can source capital goods domestically under the Foreign Trade Policy (FTP). The capital goods covered under the EPCG scheme include machinery, computer systems, software, spares, molds, dies, jigs, fixtures, tools, and catalysts.Every EPCG authorization carries an export obligation equal to six times the duty saved on imported goods, which must be fulfilled within 6 years. The authorization remains valid for import for 24 months from the date of issue. Restricted items can be imported or exported under EPCG only with prior approval from the Exim Facilitation Committee (EFC) at the DGFT headquarters.Services Covered Under EPCG SchemeThe Export Promotion Capital Goods (EPCG) Scheme offers several online services for exporters and service providers through the DGFT portal. Below are the key services available under the EPCG scheme:Apply for EPCG (ANF-5A): Submit a fresh application using your Importer Exporter Code (IEC).Amend EPCG Authorization: Request changes or updates to an existing authorization.Invalidation or Certificate of Supplies: Obtain or submit invalidation certificates.Clubbing of EPCG Authorizations (ANF-5C): Combine multiple EPCG authorizations.Closure or Post-Export Scrip Issuance: Apply for closure of EPCG authorizations.Installation Certificate: Upload the installation certificate for capital goods.License Status at Customs: Check the current license status online.EO or Block Extension: Apply for export obligation or block period extension.Authorization Transmission Details: Track the transmission status from DGFT to CBIC.Manual EODC Status Update: Manually update redeemed licenses.EPCG Committee Application: Request relaxation in policy or procedure.Review Application (ANF-2D): Apply for review of committee decisions.Transfer of Authorization: Request transfer of EPCG authorization.Annual Reporting of EO Fulfillment: Submit annual export obligation reports online.Pre-Requisites for Applying for the EPCG SchemeThe application for an EPCG Authorization is submitted online to the jurisdictional Regional Authority (RA) of the Directorate General of Foreign Trade (DGFT). Before filing, ensure all the following prerequisites and documents are in place. Pre-requisites are mentioned in the Foreign Trade Policy Handbook of Procedures, Chapter 5.Applicant Eligibility and RegistrationImporter-Exporter Code (IEC) is Mandatory:You must possess a valid Import Export Code (IEC).The IEC is issued by the DGFT.It is the fundamental document for any import or export activity.A valid Digital Signature Certificate (DSC) is required:The EPCG application must be filed online (Download Form ANF-5A).A DGFT Digital Signature Certificate (DSC) is mandatory for electronic submission.Registration-cum-Membership Certificate (RCMC):Registration with an appropriate Export Promotion Council (EPC) is compulsory.A valid RCMC must be obtained from the relevant EPC.Proof of Manufacturing Unit/Service:You must be an eligible entity: a Manufacturer Exporter, a Merchant Exporter tied to a supporting manufacturer, or a Service Provider.For manufacturing, proof such as an MSME/SSI registration, Udyog Aadhar, Industrial License (IL), or Industrial Entrepreneurs Memorandum (IEM) is required.The manufacturing proof must list the export product.The factory address for capital goods installation must be clearly stated.Mandatory Certification DocumentsChartered Engineer Certificate (CEC) – Appendix 5A:This is a critical document for the application.A Chartered Engineer (CE) must issue a certificate in the format of Appendix 5A.The certificate must establish the nexus (relationship) between the imported capital goods and the resultant export product/service.The CE certifies that the capital goods are necessary for pre-production, production, or post-production.Chartered Accountant (CA) Certificate – Appendix 5B:The application must include a certificate from a Chartered Accountant, Cost Accountant, or Company Secretary (Appendix 5B).This certificate must confirm the export performance for the same or similar products.It certifies the average export level achieved in the preceding three licensing years. This data is used to calculate the mandatory Average Export Obligation.Transaction and Financial DocumentsProforma Invoice / Purchase Order:Submit a copy of the Proforma Invoice or the firm's Purchase Order.This confirms the details of the capital goods being purchased from the overseas supplier.Detailed Duty Saved Statement:A statement is required that clearly indicates the CIF (Cost, Insurance, Freight) Value of the capital goods.It must detail the full effective customs duty applicable.The statement specifies the amount of duty to be saved under the EPCG scheme.Application Fee Payment Proof:The requisite application fee must be paid.Proof of payment, such as a Treasury Receipt (TR), Challan, or Electronic Fund Transfer (EFT) details, must be submitted.Other Supporting DocumentsSelf-certified copy of the GST Certificate, if applicable.Details of any previous EPCG Authorizations obtained and their current status.If the capital goods are being used by a Supporting Manufacturer, their details (name, address, manufacturing proof) must be included in the application and endorsed on the license.Coverage Under the EPCG SchemeThe EPCG scheme is available to a wide range of exporters and service providers. It covers:Manufacturer exporters (with or without supporting manufacturers)Merchant exporters tied to supporting manufacturersService providers recognized under the schemeThe name of the supporting manufacturer must be mentioned on the EPCG license before the capital goods are installed. If there is any change in the supporting manufacturer, it must be reported to the jurisdictional Customs Authority and the port of registration.The Export Promotion Capital Goods Scheme also includes Common Service Providers (CSPs) certified by the DGFT. These CSPs can operate in a Town of Export Excellence or PM MITRA Parks under the following conditions:Common utility services such as electricity, water, gas, or sanitation are not eligible.Exports made by users of the CSP can count toward the CSP’s export obligation if shipping bills mention the CSP’s authorization details.These exports cannot be used to meet obligations under any other EPCG license.A bank guarantee equal to the duty saved must be submitted by the CSP or its users.All capital goods must be installed within the designated export town or park.Export Obligation (EO)The EPCG scheme requires the EPCG license holder to fulfill the export obligation (EO). The key points are:Who can fulfill EO:EO must be fulfilled by exporting goods manufactured by the holder or supporting manufacturer.Services rendered by the holder under the EPCG authorization also count.Exports can be made directly or through third parties.Average Export Obligation (AEO):EO is calculated over and above the average exports of the previous three licensing years for the same or similar products.The arithmetic mean of export performance over the last three years serves as the AEO.AEO must be maintained every financial year until EO is fully completed.Exports above the AEO count toward fulfilling EO.Indigenous sourcing:If capital goods are sourced domestically, specific EO is 25% lower than the standard EO.Average EO remains unchanged.Eligible exports:Exports under the Advance Authorization, DFIA, Duty Drawback, RoSCTL, and RoDTEP schemes are allowed.EO can be fulfilled by physical exports or deemed exports.Supplies to DTA units are counted toward EO and AEO.ITA-I item supplies to DTA, royalty in foreign currency, R&D service payments, and certain rupee payments are eligible.Restrictions and rules:Only one benefit from the specified provisions can be claimed for EO.Extension of the EO period is permitted under the Handbook of Procedures.Calculation of Export ObligationUnder the EPCG scheme, the export obligation (EO) is calculated based on the type of capital goods procurement. Key points include:Direct ImportsEO is calculated with reference to the actual customs duty, taxes, and cess saved on imported capital goods.Domestic SourcingEO is calculated using the notional customs duty, taxes, and cess saved on the FOR value.This value is indicated in the ARO (Authorization Redeemed Order) or Invalidation Letter.Incentive for Early EO FulfillmentIf the authorization holder fulfills 75% or more of the specific EO and 100% of the Average Export Obligation (AEO) within half or less of the original EO period, the remaining EO may be condoned.The EPCG license can then be redeemed early by the concerned RA.WareIQ: Simplifying Fulfillment and ShippingWareIQ is a Y-Combinator-backed full-stack eCommerce platform that helps exporters and sellers manage multi-channel fulfillment across D2C, marketplaces, quick commerce, and B2B channels. It supports seamless operations and integrates with eCommerce platforms, WMS, and ERPs.Key offerings include:Pan-India Fulfillment Network: WareIQ operates across 12+ cities, delivering to over 27,000 pin codes, using Seller Flex and FAssured-compliant processes.Multi-Channel Fulfillment Platform: Plug-and-play integrations with marketplaces like Amazon, Flipkart, Myntra, and Nykaa, and D2C platforms such as Shopify, Magento, and WooCommerce. It supports distributors, flagship stores, and analytics for operational performance.Inventory LogIQ: AI-led inventory planning to prevent stockouts and automate replenishment.Tech-Enabled Returns Management: Capture and store HD media of damaged or missing products to prevent marketplace claim rejections.Smart Shipping Solutions: Multi-carrier engine, control tower, same/next-day delivery, NDR and RTO management, shipping badges, and branded tracking pages to enhance customer experience.FAQsWhat is EPCG, and who is eligible?The Export Promotion Capital Goods (EPCG) Scheme allows exporters to import capital goods at zero customs duty. Manufacturer exporters, merchant exporters tied to supporting manufacturers, and certified service providers are eligible.How do I apply for an EPCG license?Applications are submitted online using ANF-5A on the DGFT portal. An Importer-Exporter Code (IEC) is required, along with other prerequisites under the Foreign Trade Policy.What are the benefits of the EPCG scheme?Benefits include zero customs duty on capital goods, exemption from IGST and Compensation Cess, reduced export obligations for green technology products, and incentives for early EO fulfillment.Can service providers apply for EPCG?Yes. Service providers certified as Common Service Providers (CSPs) in eligible export towns or parks can apply under the scheme.What happens if the export obligation is not fulfilled?Non-fulfillment of EO may lead to penalties or recovery of duties saved. Early fulfillment may lead to redemption of the EPCG license.

December 04, 2025

E-Commerce Payment System: How It Works in India [2026]

The number of daily online transactions varies widely. Globally, over 1 billion credit card transactions occur each day. On an individual level, the average consumer completes about two online transactions per day. The total value of the digital payments market is expected to reach US$24.07 trillion by 2026.In India, the adoption of digital payment solutions has grown rapidly, transforming how people shop online. This blog explores how e-commerce payment system work, the key players in India’s digital payment ecosystem, and the various types of payment systems available.National Payments Corporation of India (NPCI)The National Payments Corporation of India (NPCI) is the main organization managing retail payments and settlement systems in the country. It was created by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the Payment and Settlement Systems Act, 2007.NPCI operates as a not-for-profit company under Section 8 of the Companies Act, 2013. Its main focus is to support the banking system by providing reliable infrastructure for electronic payment and settlement systems. NPCI plays a key role in designing electronic payment systems that make transactions faster and safer.The initial promoter banks of NPCI included major names such as the State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank N.A., and HSBC. In 2016, NPCI expanded its ownership to include 56 member banks from different sectors.Indian E-commerce Market OverviewIndia’s e-commerce market is among the fastest-growing in the world. It was valued at $46.2 billion in 2020 and is projected to reach $136.47 billion by 2026, growing at an annual rate of 18.29 percent. Market Segments (2020 vs. 2026)Online Retail: 44% (2020) → 49% (2026)Online Travel Services: 25% (2020) → 14% (2026)Online Financial Services: 10% (2020) → 12% (2026)Online Matrimony & Classifieds: 18% (2020) → 3% (2026)Other Online Services: 18% (2020) → 22% (2026)Customers in India increasingly prefer online shopping for categories like apparel, accessories, electronics, personal care, and household items. Around 25%–30% of consumers now choose online platforms over offline stores.According to ACI Worldwide, digital payments in India will make up 71.7% of all transactions by 2026, while cash and checks will drop to 28.3%.Consumers prefer using Google Pay, Visa, Mastercard, and Paytm for secure and quick transactions. As per Statista, India recorded 35 billion digital transactions worth over $769 billion in 2021. This figure is expected to cross 210 billion transactions by 2026.Types of Payment Systems in India According to Mordor Intelligence, the India Payment Gateway Market size is estimated at USD 2.07 billion in 2026, and is expected to reach USD 3.62 billion by 2030, at a CAGR of 11.89% during the forecast period (2026-2030). Credit CardCustomers enter their card number and expiry date on the seller’s website to complete the purchase. To ensure safety, online payments include a Card Verification Number (CVN). The CVN helps detect fraud by matching the number with the cardholder’s details.Debit CardDebit cards are the second most used payment method in India. They allow customers to spend only what is available in their bank accounts. Unlike credit cards, there are no bills or delayed payments. This electronic payment system is preferred by users who want to manage their spending within limits.Smart CardA smart card is a plastic card with a built-in microprocessor. It stores a customer’s personal and payment information. The card can be loaded with funds for online transactions and instant bill payments. The balance reduces with every use and can be reloaded from the bank account.E-WalletAn e-wallet is a prepaid digital account that stores multiple cards and bank account numbers securely. It removes the need to enter payment details for every transaction. Once registered, customers can pay quickly using their e-wallet profile. This electronic payment system in e-commerce offers speed and convenience.Net BankingNet banking allows customers to pay directly from their bank accounts. It does not require a physical card but needs registration with the bank. During checkout, users log in with their banking ID and PIN to authorize the payment.Mobile PaymentMobile payments are a newer form of e-payment system in e-commerce. Customers send a payment request through a mobile app or text message. The purchase amount is charged to their mobile account or linked card. To use this service, customers download software from their service provider and link their payment details.Amazon PayAmazon Pay is a secure and convenient option for online shopping. It uses stored information from the customer’s Amazon account to make payments on partner websites and apps. This saves time and keeps payment details safe.Major Payment Gateways in IndiaRazorpayRazorpay supports a broad set of payment methods: credit & debit cards, net banking, UPI, mobile wallets, EMIs, and PayLater options.Here are some of its notable features:Accepts domestic and international cards, UPI, net banking, and mobile wallets.A developer-friendly setup with APIs, plugins for popular platforms (WooCommerce, Shopify, Magento), and minimal onboarding.A powerful merchant dashboard offering real-time tracking of payments, settlements, refunds, and analytics.Security: PCI DSS Level 1 compliance, frequent audits, and a dedicated security team.Paytm Paytm gateway arm is part of the broader Paytm ecosystem. It provides merchants with access to a large consumer base and a familiar checkout experience in India. Some key points:Offers over 100 payment sources, including cards, net banking, UPI, and wallets.Instant activation and digital onboarding with minimal documentation.Transparent pricing: for example, UPI & RuPay debit at 0% MDR in some tiers, card/net-banking at ~1.75% + GST in the standard plan. Trusted checkout experience leveraged by millions of users in India.PayUPayU is another prominent gateway in India, especially for merchants who value scalability, reliability, and advanced analytics. Accepts cards, UPI, net banking, and digital wallets across one unified platform. Offers robust dashboard features: reports, transaction history, settlements, chargebacks, and analytics.High uptime during peak sales, good support for scaling e-commerce businesses.CCAvenueCCAvenue is one of the older gateways in India, offering wide global payment mode support and deep merchant features. Key features:Support for 200+ payment modes: credit & debit cards, EMI options, 58+ banks’ net banking, UPI, prepaid instruments, and multi-currency processing.Fast onboarding (digital KYC) and easy integration with shopping carts (Magento, WooCommerce, etc).Fraud & risk prevention engine (F.R.I.S.K) with velocity checks, blacklist control, and other sophisticated risk measures. MobiKwikMobiKwik is a popular digital payment platform in India. It has over 180 million users and more than 4.4 million merchant partners. MobiKwik offers an easy-to-use electronic payment system in e-commerce for a wide range of transactions:Scan any QR code or pay to any UPI ID.Instantly settle bills.Add funds using debit/credit cards, UPI, or wallet balance.Earn rewards and cashback on payments.MobiKwik provides quick loans up to ₹500,000 in just 2 minutes. Loans can be used anywhere in India, making it convenient for urgent financial needs.Users can invest in digital gold, mutual funds, or fixed deposits. MobiKwik offers up to 14% annual returns on certain investment options. The platform also helps track expenses, earnings, and investments in one place.WareIQ: Fulfillment and Shipping for E-CommerceWareIQ is a Y-Combinator-backed full-stack e-commerce platform offering multi-channel fulfillment across D2C, marketplaces, quick commerce, and B2B operations. It helps businesses streamline order fulfillment, manage inventory, and ensure smooth last-mile delivery.Pan-India Fulfillment NetworkOperates Seller Flex and FAssured centers in 12+ cities.Partners with couriers to cover 27,000+ pin codes for last-mile delivery.Ensures timely order dispatch and delivery for all sales channels.Multi-Channel IntegrationPlug-and-play integrations with marketplaces like Amazon, Flipkart, Myntra, and Nykaa.Compatible with D2C platforms: Shopify, Magento, WooCommerce.Supports WMS and ERP systems for fulfillment across distributors, flagship stores, and e-commerce channels.Provides analytics to track operational performance.Inventory Management with Inventory LogIQAI-powered multi-channel inventory planning.Reduces stockouts and automates replenishment.Improves efficiency across all sales channels.Returns ManagementTech-enabled QC system captures HD evidence of damaged or missing items.Central storage and auto-indexing prevent marketplace claim rejections.Quick Commerce FulfillmentRegional inventory placement to serve Blinkit, Zepto, Swiggy Instamart.Local fulfillment centers act as feeder warehouses.PO creation & management platform tracks orders in real-time via OMS/WMS/ERP.The trained operations team ensures accurate preparation and on-time dispatch.Integrated courier partners deliver orders as per appointment.Seller Support & EnablementDedicated account managers.Assistance with APOB/PPOB registration, GST registration, NDR & COD verification.End-to-end operational and technical support.FAQsWhat is the typical setup time for an e-commerce payment system in India?Most modern payment gateways allow businesses to go live within a few hours to a couple of days. Setup usually involves registering your business, verifying bank details, and integrating the gateway with your website or app.Are international transactions supported by Indian payment gateways?Yes, many gateways such as Razorpay, PayU, and CCAvenue allow international payments. They support multiple currencies and provide automatic currency conversion for global customers.How secure are digital payments for small e-commerce businesses?Digital payments are generally very secure. Gateways use encryption, two-factor authentication, and PCI DSS compliance. Even small businesses benefit from fraud detection and secure transaction processing.Can e-commerce platforms track payments in real-time?Yes, most payment gateways provide dashboards with real-time tracking. Merchants can monitor transactions, refunds, and settlements instantly, helping them manage cash flow and reconcile accounts efficiently.Do payment gateways charge extra for returns or refunds?Some gateways may charge a small fee for failed transactions or certain refund processes. However, most platforms have transparent pricing, and fees can often be negotiated based on transaction volume.

December 03, 2025

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