On April 27th, the eBay Public Policy Lab released the United States Small Online Business Growth Report as part of their ongoing research examining the trade patterns and growth of enterprises using the eBay Marketplace. This report provides an in-depth look at trade and growth figures for eBay-enabled small businesses and entrepreneurs (Commercial Sellers with annual sales of $10K or more) in all 50 states as well as the District of Columbia. The report also provides a state-by-state snapshot of the counties with the most eBay-enabled small business activity per capita. The report findings reveal that nearly every eBay-enabled small business in each state is an exporter, and that eBay-enabled small businesses as a whole have been experiencing sales growth rates that exceed their state economy averages. The research also shows that active eBay-enabled small businesses emerge from communities nationwide, whether rural counties in Vermont or urban counties in California. These findings further bolster the argument that the technology-enabled platform commerce model, which significantly reduces the cost of doing business, is a highly inclusive model of trade. For example, our research revealed:
- 97% of eBay-enabled small businesses in the United States export! This figure dwarfs the export activity of traditional US businesses, which stands at approximately 1% nationwide.
- Nationwide, eBay-enabled small businesses that export reach an average of 18 foreign markets.
- Of the 3,141 counties in America, 92.5% were home to at least one eBay-enabled small business. Every county in the United States with a population over 21,000 had at least one resident eBay-enabled small business.
The report also provides key recommendations for policy makers to drive even greater economic growth among small American business that use the Internet to export. These include:
- Increase Low Value Customs “De Minimis” Thresholds Across the Globe
- Support the Trans-Pacific Partnership Agreement (TPP) and Other Efforts to Modernize Trade Policy
- Modernize Postal Systems to Support Small Business Digital Trade
- Promote the US Standard of Intellectual Property Law in Trade Agreements
- Ensure a Free and Open Internet
- Explore Flexible International Regulatory Cooperation Solutions
- Provide Coordinated Export Promotion Assistance to Internet-Enabled SMEs
Welcoming more small businesses from across the United States into the global market benefits consumers, offering them with more choice, and creates new opportunities for entrepreneurs looking to build and grow their business. Our data paints a brighter future for these small businesses, and demonstrate that ecommerce platforms contribute greatly to the goal of a more inclusive global economy.