The majority (96%) of US eBay small business sellers export and reach an average of 17 different foreign countries with their products, says new ‘US Small Online Business Trade and Inclusive Growth‘ report by eBay.
The report details the global trade achievements of eBay-enabled small businesses in the US.
Top five export destinations
According to the study, nearly all eBay small business sellers in the US are exporters – reaching customers in markets around the world. The top five export destinations for the products of American eBay-enabled small businesses in 2017 were Canada, Australia, the United Kingdom, China and Russia.
US eBay sellers reach more markets than traditional companies
The report says that only 1% of traditional businesses in the US are exporters and reach an average of only four foreign markets. On the other hand, 60% of eBay-enabled small businesses sold to customers on four or more continents, further solidifying that the export reach through eBay is global. Similar rates of exporting were also achieved at the state level, demonstrating that these opportunities are available to small businesses throughout the United States.
The export success of eBay-enabled small businesses is a good news story of inclusive global trade. The ability for small enterprises to reach customers outside of their local and country markets is creating more balanced and inclusive economic opportunities.
The report says that from 2011-2016, eBay small business growth was 5.1 times more balanced than traditional business growth in the overall economy. Expanding access for small businesses to trade also provided growth and opportunity boost to more remote and less prosperous communities across the country.
It examined communities in the US, facing moderate to severe economic hardship and compared the growth in the number of eBay-enabled small businesses to the increase in a number of traditional businesses. In these communities, which are home to nearly 100 million Americans, the number of eBay-enabled small businesses grew at a rate of 21%, while the number of traditional businesses increased at a rate of less than 1%.
These findings highlight growth opportunities for sellers who wish to expand into a new country. eBay allows sellers to test the waters of a new market without fully integrating their businesses abroad. This means that merchants can either continue their trading journey overseas or go back to selling domestically without suffering financial losses.