Indian fashion and apparel brands expanding internationally — DTC brands, ethnic wear exporters, sustainable fashion labels, handloom businesses, and artisan apparel — face payment infrastructure needs shaped by both consumer payments (DTC international orders) and B2B wholesale payments (international buyers and boutiques).
Two Revenue Streams, Two Payment Profiles
DTC Consumer Sales (Direct to International Customers)
Indian fashion brands selling direct-to-consumer to NRIs in US/UK/UAE and global fashion consumers:
- Order value: $50-$500 per order
- International Visa/Mastercard primary
- High return/refund risk (fit issues, color differences)
- Chargeback risk above average for fashion ("not as described" common)
- High cart abandonment — checkout friction directly impacts revenue
B2B Wholesale (International Boutiques and Buyers)
Indian brands selling wholesale to international boutiques, multi-brand stores, and fashion buyers:
- Order value: $2,000-$200,000 per wholesale order
- Wire payment standard for enterprise buyers
- NET-30 to NET-60 payment terms common
- Repeat seasonal ordering from established buyers
Recommended Payment Stack
DTC International Orders
-
International customer pays by Visa/Mastercard/Amex/Apple Pay: 4% flat, zero forex markup
-
FIRA auto per order
-
Daily INR direct High-ticket DTC orders (above $300 — luxury/premium fashion):
-
BNPL via Klarna/Afterpay: 10% flat on Playto Pay
-
Lifts conversion on premium fashion by 20-40% Indian customers (ethnic fashion, domestic NRI orders):
-
UPI at 0% on Playto Pay
B2B Wholesale Orders
Skydo for large wholesale wire receipts above $10K (0.3%):
-
$50,000 seasonal wholesale order: $150 (0.3%)
-
Auto-FIRA, 24-48 hour settlement Playto Pay VBA for mid-size wholesale ($2K-$10K):
-
1% flat
-
FIRA auto
Chargeback Management for Fashion
Fashion has higher chargeback rates than most retail categories due to:
- Fit issues leading to "not as described" disputes
- Color differences between screen and actual product
- Shipping delays leading to "not received" disputes
- International return complexity (customers sometimes do chargeback instead of return) Prevention:
1. Accurate product photography. Multiple angles, on-model and flat-lay. Color-accurate images in multiple lighting conditions. Size chart clearly visible on product page.
2. Detailed size chart with measurements. Bust, waist, hip in both inches and centimeters. "Fits true to size" or "runs small/large" note. Customer who picks the right size has less reason to dispute.
3. Clear return policy visible at checkout. If international returns are complex (customs, shipping cost), state this clearly. "International returns: customer pays return shipping." Informed customers dispute less.
4. Shipment tracking email with tracking link. Proactive tracking notification reduces "not received" disputes.
5. Pre-delivery confirmation email. "Your [Brand] order is arriving soon!" with tracking. Customer anticipating delivery doesn't file disputes.
International Shipping and Payment Coordination
Customs/duties: International orders are the buyer's responsibility for duties and taxes (DDU — Delivered Duty Unpaid). State this clearly in checkout terms.
Shipping partners: DHL, FedEx, UPS for international DTC (reliable tracking = fewer disputes). Avoid untracked shipping internationally.
COD (cash on delivery) internationally: Not applicable. All international orders: prepaid via card or wire.
FIRA purpose code: Fashion/apparel export is physical goods export — different from service exports. Export of goods has different FEMA/RBI treatment than export of services. Physical goods exports involve:
- Export documentation (shipping bill, invoice, packing list)
- GST: Export of goods at 0% IGST under LUT (same LUT process as services)
- FIRA: Foreign payment received against export invoice Consult CA on goods export vs service export treatment — different from pure service businesses.
Wholesale Invoice and Payment Terms
Wholesale invoice format for international boutique buyers:
[Brand Name]
[Address] | GSTIN | IEC Code (Import Export Code)
Proforma Invoice / Commercial Invoice
Invoice No.: [X] | Date: [Date]
Buyer: [Boutique Name] | Country: [Country]
Item Description | Qty | Unit Price | Total
[Garment Name/SKU] | 50 | USD 45 | USD 2,250
Total: USD [X]
Export of Goods - Zero-rated under LUT
Payment Terms: 30% advance, balance before shipment
Bank Details:
Account Name: [Brand Name]
[USD VBA from Skydo or Playto Pay]
Reference: Invoice [X]
Payment terms for wholesale: 30% advance on order confirmation + 70% before shipment dispatch is standard for first-time international buyers. NET-30 available for established accounts.
Import Export Code (IEC) for Fashion Exporters
For Indian fashion brands physically exporting goods internationally (DTC or wholesale), IEC (Import Export Code) from DGFT is required. IEC is:
- Mandatory for physical export of goods from India
- Free to obtain online via DGFT portal
- PAN-linked
- Lifetime validity Without IEC, customs won't clear your export shipments. This is separate from payment gateway requirements but essential for physical apparel export.
FAQ
What payment gateway is best for Indian fashion brands selling internationally? Playto Pay for DTC consumer card payments (4% flat, BNPL for premium) and Indian UPI (0%). Skydo for wholesale wire receipts above $10K (0.3%).
How do Indian fashion brands reduce chargebacks from international customers? Accurate photography, detailed size charts, clear return policy at checkout, proactive shipment tracking emails, and pre-delivery notification. 3DS authentication on all international card payments.
Do Indian fashion brands need Import Export Code for international DTC sales? Yes. Physical export of goods from India requires IEC from DGFT. Free to obtain online. Separate from payment gateway setup but mandatory for customs clearance.
Is GST applicable on international fashion sales? Export of goods at 0% IGST under LUT (same as services). File LUT annually. Include IEC on commercial invoice. FIRA per international payment.
What's the best way to handle international wholesale buyers who want NET-60? First order: 30% advance + 70% before shipment. After 2-3 successful orders: consider NET-30 for established relationship. Only offer NET-60 once you have documented payment history and the order size justifies the credit extension.