How Sourcing From India Helps e-Commerce Brands Scale and Grow

TL;DR

• Rising tariffs, high labor costs, and supply chain risks are pushing U.S. Amazon sellers to rethink their sourcing strategies.

• India offers affordable manufacturing, eco-friendly products, and unique handmade goods that help sellers stand out.

• Popular product categories from India include home textiles, apparel, beauty products, health and personal care, kitchen appliances, and eco-friendly toys.

• Sourcing from India reduces overdependence on China and offers strong quality control, cost advantages, and diverse product options.

• India’s growing export infrastructure and government support make it easier for U.S. sellers to build reliable supplier partnerships.

Feeling squeezed by rising costs and delays on Amazon?

Global sourcing is shifting fast: Chinese tariffs have surged as high as 25%, labor costs there have doubled in the past decade, and supply chain disruptions are now a regular headache for U.S. Amazon sellers.

These aren’t small bumps — they hit your profits, delay your deliveries, and slow down how quickly you can scale. That’s why smart Amazon sellers are looking to India. 

In 2024, India’s export sector grew by over 12%, with trending categories like textiles, handicrafts, home décor, and eco-friendly products grabbing global attention. Unlike mass-produced Chinese goods, Indian suppliers offer something fresh, unique, customizable products that help your Amazon brand stand out in a crowded marketplace.

This blog dives into why now is the time to rethink your sourcing strategy and why India is your key to scaling faster, smarter, and more profitably in today’s e-commerce world. 

Why must Amazon sellers rethink their sourcing strategy? 

Amazon sellers today face tough new realities that make rethinking their sourcing strategy essential.

As of 2025, most products sold by the U.S. Amazon sellers still come from China. According to the Jungle Scout survey, about 71% of products on Amazon are made in China that’s over twice as many as those made in the U.S.

This dependence has been growing. In 2023, 71% of U.S. Amazon sellers sourced from China, and by 2024, China-based sellers made up over half of the top sellers on Amazon.

But things are changing. In 2025, the U.S. government removed the “de minimis” exemption, meaning packages under $800 from China now face tariffs as high as 145%. This big cost increase is pushing many U.S. sellers to rethink their sourcing strategies and look for other countries to work with.

Why is it time to rethink sourcing?

• Rising tariffs: U.S.-China tariffs have increased significantly, raising costs on a wide range of goods, from electronics to textiles.

• Higher production costs in China: Labor and material costs have nearly doubled over the last decade.

• Supply chain risks: COVID-19, geopolitical tensions, and shipping delays have exposed how fragile single-country sourcing can be.

• Customer demand shifts: Shoppers now prefer unique, eco-friendly, or handmade products — not just mass-produced goods.

• Competitive pressure on Amazon: With so many sellers offering similar Chinese-sourced products, it’s hard to stand out without offering something different.

While many U.S. Amazon sellers still source their products from China, changing trade rules and rising costs are now pushing them to explore other options, such as sourcing from India to scale their e-commerce businesses.

By diversifying into countries like India, e-commerce brands can reduce risk, lower their costs, and tap into a wider variety of product categories that align better with current customer trends. It’s no longer just about cutting expenses, it's about building a stronger, more resilient, and more competitive business for the long term.

Why does India fit Amazon’s scaling needs?

India is becoming one of the most attractive sourcing destinations for e-commerce sellers who want to scale their business.  Here’s why?

• India offers a wide range of product categories that fit perfectly with what today’s Amazon customers want from handmade goods, eco-friendly products, home décor, textiles, jewelry, wellness items, and even engineered goods. These products help sellers stand out because they are often unique, customizable, and supported by the strong manufacturing capacity of India, unlike many mass-produced Chinese goods.

• India’s labor costs are competitive. While China’s wages have doubled in the past decade, India still offers affordable manufacturing, especially in labor-intensive industries like textiles, handicrafts, and apparel. This allows Amazon sellers to maintain healthy margins while offering attractive price points.

• India has strong government support for exports. With initiatives like “Make in India,” the Indian government has focused on improving manufacturing standards, infrastructure, and ease of doing business. Many export zones and supplier networks are now set up to handle global orders efficiently.

• India offers a diversification advantage. By splitting sourcing between China and India, sellers reduce their risk exposure. For example, if political tensions, tariffs, or supply chain problems hit one region, they still have an alternative source to keep inventory moving.

• India’s growing reputation for quality makes it a smart long-term partner. Many suppliers are already working with top global brands, meaning they understand export standards, compliance, and packaging requirements.

In short, India fits Amazon’s scaling needs because it offers cost savings, product uniqueness, lower risk, and reliable partnerships — all of which help sellers build a stronger, more competitive business. For Amazon brands looking to grow, India is no longer just an alternative — it’s a powerful sourcing solution.

As an Amazon marketplace expert and seller as well, it is important to choose the right product that helps drive growth, increase sales, and strengthen your business in a competitive market.

Product categories from India that scale well on Amazon's

#1 Home textile product 

The home textile industry is one of the largest because it covers so many product types — like bed and bath linens, kitchen linens, kitchen accessories, curtains, carpets, and home décor items such as lamps and lighting fixtures. Indian home textile products are known for using quality fabrics, featuring traditional designs, and offering great durability that lasts over time.

These products offer a unique way to gain a strong competitive advantage. Categories like bed linens, bath towels, kitchen linens, curtains, carpets, and decorative items such as lamps and cushions are not just everyday products — they bring authentic craftsmanship, traditional designs, and durable materials that stand out on Amazon.com.

Many Indian home textile products are made using eco-friendly practices and natural fibers, which appeal to today’s conscious consumers. U.S. sellers who source these products can offer something different from the mass-produced, generic items often found on the platform.

By adding Indian home textiles to their Amazon lineup, sellers tap into a product category that’s high in demand, allows for attractive pricing, and offers unique designs customers love. This helps boost brand reputation, improve product differentiation, and increase profit margins all key factors for scaling successfully on Amazon.

#2 Apparel and garment

India has a long and rich history in textile manufacturing and is known worldwide for its high-quality fabrics and skilled workers. The country produces a wide range of textile and apparel products for customers around the globe. 

India’s textile and apparel market is also growing fast — it’s expected to grow at a rate of 10% each year from 2019–20 and reach $190 billion by 2025–26.

• India’s strong shift toward sustainability and eco-friendly practices gives sellers access to organic, ethically made clothing that aligns with what many Amazon shoppers want. Customers are increasingly looking for brands that care about the environment, and offering eco-friendly fashion helps sellers stand out and build trust.

• With digitalization and e-commerce, it’s now easier than ever for U.S. sellers to connect with reliable Indian exporters. Sellers can browse products, place orders, and manage relationships online, making the whole process faster and more efficient.

• Indian manufacturers are focusing heavily on innovation and design, creating trendy, unique apparel that helps Amazon sellers offer something fresh and eye-catching. Instead of selling the same mass-produced items everyone else offers, sellers can list original, stylish products that attract fashion-conscious shoppers.

In short, India offers U.S. Amazon sellers the sourcing flexibility they need to stay competitive, meet customer demand, and scale successfully.

#3 Cosmetics and beauty products

The demand for cosmetics and beauty products keeps growing. Within this category, organic and herbal products are becoming more and more popular in the USA. U.S. Amazon sellers have a great opportunity to source top beauty and cosmetic products from India to sell on Amazon.com.

India is known for its rich tradition of organic and herbal beauty, which is gaining popularity worldwide. Here are some key product types sellers can source:

• Skincare products like creams, lotions, medicated ointments, and sunscreens are made with natural ingredients.

• Cosmetics and accessories such as mirrors, lipsticks, mascaras, and eye shadows with unique formulations and colors.

• Beauty and personal care items like bathing accessories, soaps, body scrubs, body treatments, cleansing kits, and oils are known for their herbal blends.

• Hair care products include shampoos, conditioners, hair colors, gels, and accessories, many of which use natural or Ayurvedic ingredients.

• Oral care products like toothpaste, mouthwash, mouth fresheners, and herbal dentifrices.

• Color cosmetics such as nail polish, lip gloss, and other vibrant beauty products.

• Maternity care products and fragrances that reflect India’s use of natural scents and gentle formulas.

By sourcing these products from India, U.S. Amazon sellers can offer unique, in-demand items that stand out in the beauty market and attract eco-conscious and trend-focused shoppers.

#4 Health and personal care 

For U.S. Amazon sellers, health and personal care is one of the most promising product categories to source from India. India has a long tradition of producing herbal, Ayurvedic, and natural health products that are now in high demand worldwide. Sellers can source a wide range of items, including herbal supplements, skin care oils, essential oils, wellness teas, natural pain relief balms, and Ayurvedic remedies.

These products appeal to Amazon customers looking for eco-friendly, chemical-free, and wellness-focused solutions. What makes sourcing from India even more attractive is the cost advantage. Indian suppliers offer competitive prices without compromising on quality, helping sellers maintain strong profit margins.

Many suppliers are also familiar with global standards and packaging requirements, making it easier for U.S. sellers to meet Amazon’s regulations. By offering unique, natural, and high-quality health and personal care products, Amazon sellers can stand out from competitors selling mass-produced or generic brands. 

Sourcing from India not only gives sellers access to fast-growing product categories but also helps build a brand that customers trust and come back to.

#5 Kitchen Appliances

For U.S. Amazon sellers, sourcing kitchen appliances from India is a smart way to tap into a fast-growing and profitable category. Indian manufacturers offer a wide range of kitchen products, including blenders, mixers, juicers, grinders, pressure cookers, and small electric appliances that are designed for both local and international markets.

Many of these products come with unique features, durable materials, and competitive prices — giving Amazon sellers an edge over sellers offering the same mass-produced items from other countries. Indian suppliers are also known for combining modern technology with energy-efficient designs, which appeals to today’s eco-conscious consumers.

By sourcing kitchen appliances from India, sellers can offer affordable, high-quality products that meet the needs of a wide audience, from home cooks to busy families. Plus, with India’s growing export infrastructure and experience in global shipping, it’s now easier for U.S. sellers to build reliable supplier relationships.

Overall, Indian kitchen appliances help Amazon sellers stand out, stay competitive, and grow their product range with trusted, in-demand products.

#6 Toys 

Toys from India offer U.S. Amazon sellers a great chance to stand out and grow their business. India has a long tradition of producing safe, creative, and eco-friendly toys made from natural materials like wood, cotton, and recycled fabrics.

These toys are not just fun; they appeal to parents who care about sustainability and want alternatives to plastic-heavy, mass-produced products. Popular toy categories to source from India include handmade wooden puzzles, educational games, fabric dolls, soft toys, and eco-friendly craft kits.

Many Indian toy makers also follow strict safety standards, making it easier for Amazon sellers to offer high-quality, compliant products to U.S. customers.

By sourcing toys from India, sellers can bring unique, beautifully crafted items to the Amazon marketplace — products that stand out from the crowd and attract parents looking for thoughtful, eco-conscious choices. 

This helps sellers build trust, improve product variety, and scale their Amazon stores with exciting, in-demand products.

Benefits of sourcing  from India

Source from India offers e-commerce sellers several valuable benefits that can help strengthen and grow their businesses.

• First, cost advantages: Indian manufacturers often offer competitive pricing compared to China or other regions, thanks to lower labor costs and access to local raw materials. This allows sellers to improve margins without sacrificing product quality.

• Second, reducing risk through supply chain diversification: By sourcing from India, sellers avoid overdependence on a single country. This reduces exposure to risks like political tensions, tariff hikes, or sudden factory shutdowns — helping ensure smoother, more reliable operations.

• Third, quality control: India has a long-standing reputation for producing high-quality textiles, jewelry, home décor, and handcrafted goods. Sellers can work closely with manufacturers to create unique, customized products that stand out on platforms like Amazon, giving them a competitive edge.

By leveraging the benefits of sourcing from India, you can expand your product lines and build a profitable e-commerce business.

Ready to unlock new opportunities?

Sourcing from India offers U.S. Amazon sellers a powerful way to scale their e-commerce business with competitive pricing, unique products, and reduced supply chain risks. Whether it’s home textiles, apparel, beauty, health products, kitchen appliances, or eco-friendly toys, India’s manufacturing capacity and sourcing flexibility help sellers expand their product lines and stand out on Amazon.

To navigate this shift successfully, many sellers turn to specialized Amazon e-commerce consulting services, which provide expert guidance on supplier selection, compliance, and market strategy. With the right sourcing and support, sellers can position their brands for long-term growth and stronger marketplace success.