How US e-commerce sellers can save costs by sourcing from India

TL;DR

• U.S. e-commerce sellers can cut costs and stand out by sourcing unique, handmade, and eco-friendly products from India.

• Labor costs in India are 60–70% lower than in China, and suppliers often accept smaller minimum order quantities (MOQs).

• Indian manufacturers are flexible, open to private label projects, and familiar with U.S. packaging, labeling, and compliance standards.

• U.S. imports from India grew by 16% in 2024, showing a rising trend of businesses diversifying away from China.

• Sellers should follow a clear process: identify India’s strong product categories, vet suppliers, request samples, negotiate terms, and start with small test orders.

Running an e-commerce business in the U.S. isn’t just about selling, it's about staying profitable in a market squeezed by rising product costs, supply chain delays, and cutthroat competition. Many sellers feel trapped sourcing from China, where prices have climbed and trade tensions loom.

But here’s the hook: what if you could cut costs and stand out on Amazon by looking somewhere fresh?

India is emerging as a powerful, reliable alternative for U.S. sellers looking to source unique, affordable, high-quality products. From handcrafted home goods to eco-friendly textiles, India offers categories China simply can’t match all with the bonus of competitive pricing and lower minimum order quantities.

Plus, Indian suppliers understand Western compliance and often communicate in English, removing many sourcing headaches. This guide shows you why India is worth considering and walks you through exactly how to get started without costly mistakes.

Why India is the most reliable sourcing option for U.S. sellers

For U.S. e-commerce sellers, the pressure to stay competitive is intense. Profit margins are getting squeezed from every angle, rising ad costs, shipping delays, inflation, and tough price competition.

If you’re still sourcing the same generic, mass-produced products from China as thousands of other sellers, you’re likely feeling stuck.

• How do you stand out?

• How do you lower your costs without sacrificing quality?

This is where sourcing from India becomes a smart alternative and a great way to grow your business.

Let’s break it down in a way that connects directly to your business goals as a U.S. seller.

Reason 1: Access to unique, high-demand products
If you sell on Amazon or Shopify, you know how crowded the market is. Generic “Made in China” products often face intense price competition, with razor-thin margins. India offers something different, such as handmade crafts, artisan textiles, eco-friendly products, natural beauty items, and culturally rich home décor. 

These are products that carry a story, and shoppers love stories. They’re willing to pay more for items that feel authentic, handmade, or ethically sourced. For a U.S. seller, this means higher average order values, stronger branding opportunities, and reduced competition.

Reason 2: Cost savings where it matters
India’s labor costs are 60–70% lower than China’s, and suppliers are often willing to work with smaller minimum order quantities (MOQs). For U.S. sellers, that means you don’t have to overcommit upfront. 

You can test new product ideas without tying up thousands of dollars in inventory. Imagine being able to launch a small batch of a new eco-friendly home décor line without the big factory order requirements many Chinese suppliers demand. Cost-effective sourcing from India is a smart, lower-risk way to expand your catalog and test new products.

Reason 3: Flexible suppliers who listen
Unlike many large Chinese factories focused on mass production, India’s manufacturing sector is filled with small to mid-sized businesses that value relationship-building. They’re often more open to customization, private labeling, co-branding, and working closely with international clients. 

This means if you have a vision for a unique product, maybe a limited-edition jewelry design or a custom fabric pattern, you’re more likely to find an Indian supplier who’s ready to collaborate. For U.S. sellers, this flexibility is gold. It lets you build unique offerings and strengthen customer loyalty.

Reason 4: Familiarity with U.S. standards and expectations
Indian exporters have deep experience working with Western markets. They know the packaging, labeling, safety, and compliance standards U.S. buyers require, which reduces costly headaches. 

As a seller, you don’t want to deal with shipments held up at customs or Amazon rejecting your listings due to non-compliant labeling. Indian suppliers help you move faster, get products into FBA (Fulfilled by Amazon) or your warehouse smoothly, and avoid last-minute surprises.

Reason 5: Smarter diversification for long-term security
Here’s the reality: Relying solely on China is risky. Between unpredictable U.S.–China tariffs, global supply chain bottlenecks, and geopolitical tensions, having all your products tied to one country is a dangerous bet. 

Recent data shows that U.S. imports from India grew 16% in 2024 — more American businesses are already diversifying their sourcing strategies. By adding Indian suppliers to your mix, you reduce your exposure to disruption and make your supply chain more resilient. That’s not just smart business — it’s survival.

In short, for U.S. e-commerce sellers who want to cut costs, boost product uniqueness, and reduce sourcing risk, India offers a powerful, reliable alternative. If you want help navigating this shift, working with an experienced Amazon consultant can make your transition faster, smoother, and more profitable, ensuring you avoid costly mistakes and set your business up for long-term success.

After sourcing the product, listing is also a major aspect that shouldn’t be overlooked, as strong product listing performance optimization is key to driving sales, improving search visibility, and maximizing conversions on platforms like Amazon.

Practical advantages for U.S. sellers

Sourcing products from India isn’t just about saving money — it’s about making your business smoother, more flexible, and less risky. Let’s break down the key advantages U.S. sellers get when working with Indian suppliers, compared to China.

#1 English-speaking suppliers ease communication

India has over 125 million English speakers, making it the second-largest English-speaking country in the world. In contrast, China has a much smaller percentage of fluent English speakers, often leading to communication gaps or the need for third-party translators.

With Indian suppliers, U.S. sellers can discuss product details, solve problems, and negotiate confidently without worrying about misunderstandings.

#2 Familiarity with Western packaging, labeling, and compliance requirements

Indian manufacturers regularly export to Western markets and understand U.S. packaging, labeling, and compliance rules. While Chinese factories are also experienced, China’s scale often leads to mass production with less flexibility, and sometimes, sellers encounter issues like improper labeling or missing certifications.

Indian suppliers, many of whom operate on a smaller scale, are often more careful and adaptable, helping sellers avoid compliance headaches and costly fixes.

#3 Opportunities for private label and co-branded products

India’s manufacturing landscape is largely made up of small to mid-sized businesses, which means they are highly open to private labeling and custom projects. Recent industry reports show that over 75% of India’s export-driven manufacturers work directly with international buyers on tailored or co-branded products. 

In contrast, many Chinese factories, especially large-scale ones, prefer high-volume, mass-production orders and may be less interested in smaller or customized batches, particularly for newer or niche brands.

For U.S. sellers looking to create unique product lines, test small-batch runs, or collaborate on innovative designs and access to unique products, India is known for handcrafted textiles, artisan goods, and specialty items. Sellers can stand out in the market while enjoying more adaptable production options.

According to the U.S.–India trade report, U.S. imports from India reached $105 billion in 2024, a 16% increase over the previous year, reflecting the growing shift by American businesses toward Indian sourcing, particularly for custom, specialty, and handcrafted categories.

How to get started: A step-by-step guide for U.S. sellers

If you’re a U.S. e-commerce seller thinking about sourcing from India, the process might feel unfamiliar, but it doesn’t have to be overwhelming. Here’s a simple, step-by-step guide designed to help you get started the right way.

Step 1: Identify product categories aligned with India’s strengths
India is globally known for textiles, handcrafted home décor, eco-friendly products, leather goods, natural beauty products, and artisanal crafts. Focus on categories where India has unique expertise instead of looking for mass-produced electronics or plastics, which are more China’s territory.

Step 2: Research and shortlist suppliers
Start by exploring trusted online directories like IndiaMART, Global Sources, and Alibaba (which now lists Indian suppliers too). You can also attend major trade shows like the Canton Fair India Pavilion, the India International Trade Fair, or specialized sourcing fairs in Delhi and Mumbai. These events are great for seeing products in person and networking with suppliers.

Step 3: Request product samples, certifications, and client references
Once you’ve shortlisted potential suppliers, don’t just go by their online listings. Ask for physical product samples, certification documents (like ISO, organic, or fair trade, depending on your niche), and references from past international clients. This helps you assess quality and reliability before committing.

Step 4: Work with sourcing agents or third-party inspectors
Hiring a local sourcing agent or third-party inspector in India can save you a lot of headaches. They can visit factories, check working conditions, verify certifications, and ensure products meet your specifications — all without you needing to travel.

Step 5: Negotiate clear terms
Discuss everything upfront: pricing, lead times, payment methods, shipping logistics, packaging requirements, and what happens if something goes wrong. Indian suppliers are generally open to negotiation, so don’t be afraid to clarify or push for terms that suit your needs.

Step 6: Start with small test orders
Avoid jumping in with a huge order right away. Place a small test order to check how the supplier performs on quality, timing, and communication. This helps you minimize risk while building trust gradually.

Step 7: Scale up gradually
Once you’re confident in the supplier’s performance, you can increase order volumes, explore private label or custom product options, and build a strong, long-term partnership. Many U.S. brands working with Indian suppliers report better flexibility and collaboration over time.

eStore Factory, as an e-commerce seller, understands that sourcing from India is the best option for securing cost-effective products, accessing unique local goods, and building a more resilient, future-ready supply chain.

Final words

Sourcing from India offers U.S. e-commerce sellers a powerful way to cut costs, access unique products, and reduce supply chain risks. With lower labor costs, flexible suppliers, and a strong understanding of Western standards, India has become a smart alternative to China, especially for sellers looking to stand out on Amazon.

But navigating a new sourcing market can feel overwhelming without the right help. That’s where working with an experienced Amazon consultant can make all the difference. A consultant can guide you through product research, supplier selection, compliance checks, and even negotiations, helping you avoid costly mistakes and speed up your launch.