Why More US e-Commerce Businesses are Turning to “Made in India”

TL;DR

• U.S. e-commerce businesses are shifting from China to India to reduce risks from tariffs, rising costs, and supply chain disruptions.

• India offers competitive pricing, handcrafted and eco-friendly products, and strong government export support.

• Diversifying sourcing to India helps sellers access unique, high-demand products and protect profit margins.

• India’s improved infrastructure and trade ties make it a practical and reliable alternative manufacturing hub.

• Eco-conscious buyers value India’s ethical, sustainable production, helping brands stand out in a crowded market.

• Success with Indian sourcing requires smart strategies and Amazon growth consulting for scaling and long-term success.

U.S. e-commerce businesses are no longer asking if they should diversify their sourcing; they're asking how fast.

For years, “Made in China” dominated the shelves of Amazon, Shopify, and online marketplaces across the globe. But rising tariffs, supply chain disruptions, and growing customer demand for uniqueness have made sellers rethink their strategies. 

Enter “Made in India” a powerful, often underused sourcing solution that offers far more than just low costs. India brings a unique edge: not only does it provide competitive pricing, but it also offers handcrafted, eco-friendly, and ethically sourced products that help brands stand out. 

Add to that strong government export support, improving infrastructure, and a vast network of skilled suppliers, and you’ve got a sourcing destination that aligns perfectly with the needs of scaling U.S. e-commerce businesses.

In this guide, we explore why more sellers are turning to India to reduce risk, secure competitive products, and build brands that rise above the competition.

Why diversify your sourcing?

The e-commerce landscape is changing faster than ever. U.S. online sellers who once relied almost entirely on China for sourcing are now facing rising tariffs, increased production costs, and supply chain disruptions that cut into profits and slow down growth. 

On top of that, today’s customers want more than just low-cost, mass-produced goods; they want unique, eco-friendly, and ethically made products that reflect their values. This is where India is stepping in as a powerful sourcing solution. 

Diversifying your supply chain by adding “Made in India” products isn’t just about avoiding risks, it's about staying competitive in a shifting market. India offers a wide range of product categories that appeal to modern consumers, from handcrafted home décor and textiles to eco-friendly personal care products. 

Unlike China, which often focuses on large-scale mass production, Indian suppliers are known for their ability to deliver small-batch, customizable, and artisan-made products that help brands stand out.

Beyond product uniqueness, India offers cost advantages. While Chinese labor costs have doubled over the past decade, India remains highly competitive, especially in sectors like apparel, jewelry, and handicrafts. 

Plus, the Indian government actively supports exports through initiatives like “Make in India,” improving manufacturing standards, infrastructure, and global trade connections. Diversifying into India also reduces the risk of overdependence on one country. Many U.S. e-commerce businesses are now embracing second sourcing options including India. 

With rising geopolitical tensions and unpredictable trade policies, businesses that spread their sourcing across multiple regions are better positioned to adapt and scale smoothly. 

In short, U.S. e-commerce businesses are turning to India because it offers the perfect mix including competitive prices, unique products, reduced supply chain risks, and a supportive export ecosystem all essential for growth in today’s fast-changing marketplace.

Moreover, as an e-commerce seller, we understand the importance of U.S. businesses finding the right products that balance quality, cost, and customer appeal to stay competitive and grow successfully in today’s marketplace.

Why are more US e-commerce businesses turning to “Made in India”? 

1. Reduce supply chain risk by diversifying from China

One of the biggest reasons U.S. e-commerce businesses are shifting to “Made in India” is to reduce supply chain risk by diversifying away from China.

Over the past few years, global supply chains have faced repeated shocks: U.S.-China tariffs (ranging from 7.5% to 25%), COVID-19 lockdowns, port closures, shipping delays, and rising labor costs in China (which have more than doubled since 2010).

For Amazon sellers and online brands, depending solely on Chinese suppliers now means taking on major risks that directly impact inventory flow, profit margins, and customer satisfaction. 

By adding India as a sourcing destination, businesses spread their risks across two major manufacturing hubs, reducing the chance of disruption from geopolitical tensions, local regulations, or supply chain bottlenecks in a single country. 

Here’s a quick comparison:

By diversifying into India, sellers don’t just avoid risk — they also gain access to unique, high-demand products that Chinese suppliers often can’t offer. It’s a smart long-term move that helps U.S. e-commerce businesses stay agile, protect their margins, and deliver a better customer experience.

In today’s volatile supply chain environment, relying on one country is no longer an option, smart sellers are spreading their bets, and India is proving to be the perfect fit.

2. Get competitive prices without losing quality

U.S. e-commerce businesses are increasingly turning to “Made in India” not just for cost savings, but for the winning combination of competitive prices and reliable quality, something that’s becoming harder to secure in traditional sourcing hubs like China.

Over the past decade, China’s manufacturing wages have surged by nearly 120%, pushing up product costs and squeezing profit margins. Meanwhile, tariffs on Chinese imports, especially to the U.S., now range from 7.5% to 25%, making once-cheap products significantly more expensive.

India offers a compelling alternative. With labor costs up to 30-50% lower than China (depending on the sector) and an export industry worth over $450 billion, India has positioned itself as a serious player in global sourcing. 

But it’s not just about lower wages — Indian suppliers are known for craftsmanship, attention to detail, and an ability to deliver high-quality products across categories like textiles, jewelry, home décor, and eco-friendly goods.

For example, India is the world’s second-largest textile producer and a top exporter of handmade goods, offering products that are not only affordable but also distinctive and well-made. Many Indian factories now meet international certifications for quality (ISO), sustainability, and ethical practices, ensuring that e-commerce sellers get products that meet rising customer expectations.

By sourcing from India, U.S. e-commerce brands can access premium-quality goods at prices that help maintain healthy margins, all while avoiding the escalating costs tied to Chinese suppliers. 

For sellers looking to stay competitive without sacrificing quality, India offers a clear, cost-effective path forward making it a smart move in today’s evolving global marketplace.

3. Source unique products that set your brand apart

In today’s crowded e-commerce world, standing out is everything — and sourcing from India gives U.S. brands a unique edge.

While many Amazon sellers still rely on China for mass-produced goods, more businesses are now turning to India for products that bring authentic craftsmanship, rich heritage, and a handmade touch. 

These aren’t items you’ll find in every generic Amazon listing — they’re products that tell a story and instantly set your brand apart. Here’s a look at unique Indian-made products that perform well on Amazon and break away from the saturated market. 

• Handcrafted home décor — Wooden carvings, brass figurines, woven baskets, and hand-painted pottery.

• Textiles and apparel — Block-printed fabrics, organic cotton clothing, silk scarves, and embroidered accessories.

• Jewelry and accessories — Gemstone jewelry, silver anklets, jhumkas (Indian earrings), and beaded handbags.

• Eco-friendly products — Bamboo toothbrushes, reusable cotton bags, jute tableware, and natural fiber rugs.

• Ayurvedic wellness items — Herbal oils, incense sticks, copper water bottles, and organic skincare.

• Handicrafts and artisanal goods — Leather journals, terracotta planters, and macramé hangings.

These products are not just beautiful, they resonate with shoppers looking for authenticity, sustainability, and cultural value. Customers are increasingly drawn to handmade, small-batch, and eco-friendly items that reflect a brand’s commitment to quality and ethics.

By sourcing these kinds of products from India, U.S. e-commerce sellers can carve out a space in crowded categories, offer fresh selections that competitors don’t, and build a loyal customer base that appreciates uniqueness and craftsmanship. It’s a smart move that goes beyond cost; it's about building a brand that lasts. 

By combining this approach with smart sourcing strategies, sellers can ensure they’re not just picking products, but making thoughtful, well-planned decisions that strengthen their supply chain, enhance product appeal, and drive long-term success in the competitive e-commerce space.

4. Benefit from India’s government support 

One big reason more U.S. e-commerce businesses are turning to “Made in India” is because of the strong support from the Indian government. This support makes it easier, faster, and more cost-friendly for sellers to work with Indian suppliers.

• The “Make in India” program is a big help. It encourages local factories to produce more by offering tax cuts, faster approvals, and easier paperwork. For online sellers, this means they can work with suppliers who are more efficient and ready to meet global standards.

• Another helpful program is the “Production Linked Incentive (PLI) scheme”. This rewards factories in key areas like electronics, textiles, and specialty products when they increase production. That means sellers get competitive prices and good-quality products.

• India has also spent a lot on improving its infrastructure — better ports, roads, and shipping systems. This makes it easier to get goods from the factory to the shipping dock quickly, cutting down wait times and reducing delays.

• On top of all this, India has built stronger trade ties with the U.S. and other big markets, making customs and shipping smoother. For U.S. e-commerce sellers looking for alternative manufacturing options beyond China, India offers a practical and reliable solution.

For U.S. e-commerce sellers, this all adds up to a clear advantage: sourcing from India is not only affordable but also reliable and convenient. With government help, better roads and ports, and motivated suppliers, “Made in India” offers a smart way for brands to scale up and stand out in today’s busy online market.

5. Access eco-friendly and ethical sourcing 

Today’s U.S. e-commerce businesses know that customers care about more than just price — they care about values. Buyers increasingly want to support brands that prioritize sustainability, fair labor, and ethical sourcing. 

This is one big reason why more e-commerce businesses are turning to “Made in India.” India offers a rich landscape for eco-friendly and ethical sourcing. The country has long-standing traditions of handcrafted, natural, and low-impact production methods, especially in categories like textiles, home décor, wellness, and artisanal goods. 

Many Indian suppliers use organic fabrics, plant-based dyes, recycled materials, and sustainable packaging, giving U.S. brands a way to offer products that meet the growing demand for green and ethical choices.

On top of that, India’s small-scale and family-owned workshops often maintain fair labor practices, supporting local communities and preserving artisan skills. By partnering with such suppliers, U.S. businesses can align their products with authentic stories of craftsmanship and responsibility, something today’s conscious consumers actively seek out.

What makes India even more attractive is how accessible these eco-friendly and ethical sourcing options have become. Thanks to government-backed export programs, easier digital communication, and improved logistics, working with Indian suppliers is more convenient and reliable than ever. 

Sellers no longer need to worry about navigating the process alone; many export-ready suppliers are familiar with global standards and eager to build long-term partnerships.

In short, sourcing from India helps U.S. e-commerce brands deliver what today’s customers want: unique products that don’t just look good but do good. It’s not just a smart business move, it's a way to scale with purpose and make your brand stand out in a crowded, values-driven marketplace.

After all this finding and sourcing the products, the e-commerce seller needs Amazon account management to optimize listings, run advertising campaigns, handle inventory, and ensure smooth operations that drive sales and long-term growth on the platform.

Is India the key to your e-commerce growth?

As more U.S. e-commerce businesses rethink their sourcing strategies, India is emerging as a powerful, reliable, and cost-effective alternative to traditional hubs like China. 

With competitive pricing, unique handcrafted products, strong government support, and eco-friendly manufacturing, sourcing from India helps sellers reduce risk, expand product lines, and strengthen their brand identity on platforms like Amazon. 

But navigating this shift successfully takes more than just finding suppliers; it requires the right strategy. That’s where Amazon growth consulting comes in, providing expert guidance on sourcing, compliance, and market positioning. With the right partners and planning, sellers can unlock India’s full potential and scale their e-commerce business confidently.