The last few years have been exceptional in terms of the surge in eCommerce adoption. Despite the ups and downs caused by the pandemic and looming economic recession, small online businesses have shown remarkable resilience and adaptability, which has played a crucial role in their tremendous success. To gain deeper insights into the performance of these businesses across the globe, eBay, a global commerce leader that connects millions of buyers and sellers around the world, released its ‘Small Online Business Inclusive Global Trade Report’. This report, covering 18 markets worldwide, showcases the remarkable success of small businesses in the global export industry.
Small businesses worldwide demonstrate a remarkable level of activity, with at least 93% of them engaging in exporting their goods on diverse global marketplaces. Moreover, India is a notable new player in small business exports, with a 58% newcomer rate in cross-border trade. Another interesting revelation was that businesses with online presence are averaging sales into 13 to 35 international markets, compared to the limited reach of offline businesses.
The report provides significant insights and intelligence about the expanding eCommerce industry. Its key findings comprise:
- Small online businesses are reaching multiple international markets
- Small businesses that export their goods online are reaching three to six times more markets than those limiting their exports to offline trade
- A high percentage of small businesses are selling their products in ten or more export markets, ranging from 42% to 93%
- Through online presence, small businesses included an average of 5.7 export markets that are not among their country’s top 10 export destination targets
- Over half of the small businesses on eBay in nine of the markets covered in the report were newcomers, and the newcomer rate exceeded 25 percent in all 18 countries Digital businesses are expanding export diversity and resilience
- With a high percentage of newcomers in multiple markets (25% in all 18 countries), the global market is increasingly accessible to small businesses, offering more opportunities to thrive internationally
- Small businesses from emerging economies are excelling in international trade, outperforming advanced market counterparts and net exporters
- Small enterprises are boosting international trade
- Small businesses, regardless of whether they come from countries that are net importers or net exporters, have high export rates between 93% and 100% – indicating their success in exporting their products to foreign markets
- The report also indicates that small businesses from emerging economies are more focused on achieving success in exporting than those from advanced economies
eBay’s Small Online Business Trade Report also suggests some policy recommendations aimed at improving small businesses’ access to global markets, regardless of their location. Some suggestions included are lowering custom import barriers, increasing internet accessibility, and promoting the use of AI innovations to enhance cross-border trade.