Maier and Vidorno

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Can I sell online in India directly to Indian customers?

Client Speak
LI Ping HR Director / BHS Corrugated Machinery(Shanghai) Co.Ltd

Strong support in recruitment
M+V is very professional in India HR market. They were able to provide us with strong support in our recruitment. We are satisfied with their service.

Falk Tzchichholz Sales Manager Export / Kjellberg Vertrieb GmbH

Incubation solution
With the incubation solution from Maier + Vidorno , we successfully placed our products in the Indian market and established valuable product market presence, which we can now build on further with our subsidiary

Andreas Dauerbock Quality Assurance / Voestalpine Grobblech GmbH

BIS registration project
The BIS registration project went smooth and efficient. We are very satisfied with the way the documentation, communication and inspection on-site was handled from the Maier+ Vidorno Team. We are happy to recommend working with M+V in India – with the expert’s advice you will need.

Rajesh Nath Managing Director / VDMA India Services Pvt Ltd German Engineering Association

Competent Partner
India has great investment potential for foreign companies if you manage the highly complex business environment professionally. Our experience shows – Maier+Vidorno is a competent partner to efficiently set up and run business.

Bjoern Becker Export Sales / Jumo GmbH & Co KG

Market Presence and Profitability
The cooperation of JUMO and Maier+Vidorno is a success story in India since 2008. Our sales, market presence and profitability in India shows constant growth. M+V knows about the challenges foreign companies face while doing business in India – and provides hands-on solutions.

Rene Pluss CFO, Member of the Board / Regent Beleuchtungskorper AG

Business Diagnostic and Implement Improvement
Maier+Vidorno understands business challenges in the Indian business environment and provides solutions with the help of its experts. M+V has experience in running business diagnostics and implement improvement and expansion strategies in various industries in India.

    Can I sell online in India directly to Indian customers-M+V Altios

    Can I sell online in India directly to Indian customers?

    E-commerce is booming in India and is an excellent way to reach customers disbursed across such a vast country. Foreign companies are increasingly showing interest to sell online in India in order to increase market penetration and tap the huge opportunity of online sales. However, there are some legal restrictions for foreign companies to sell online in India. There are two models for selling online within Indian law;

    • Market Place Model:Market places like AMAZON, FLIPKART Or METRO Cash & Carry India work as facilitators of e‐commerce providing a platform for business transactions between buyers and sellers. The “Market Place” itself can be owned by a foreign company (100% FDI), but any foreign “Market Place” owner can only make money from brokerage/service fees and not from margins earned while buying and selling products. Foreign companies are not allowed to directly sell products on that Market Place.
    • Inventory Based Model:This is the term used when companies sell their products directly online – either through their own web-portal or by utilizing other web-portals. Companies with a majority foreign shareholding (+50% FDI) are not permitted to sell in India using an inventory model – Irrespective of whether business transactions are Business to Business (B2B) or Business to Consumer (B2C).

     

    So what this means is the law requires that foreign products can not sell online in India directly but foreign company products can only be sold in partnership with an Indian company. Whichever of the above options is best for you it is still necessary for you to have a local partner to sell online in India for you. Partners vary in their skills and capacities, and also in the level of transparency and control, you will have so choose carefully!

    M+V can act as your local partner keeping you in control of your sales strategy while we take care of the orders and shipping and compliance.  Click here for more detail.