The online channel becomes an SME priority
At least six in ten small and midsize businesses in the United States prioritized e-commerce and digital services, according to a 2022 survey. Another study that same year revealed that several online channels were among the areas where small U.S. business owners planned to invest the most in the future. That includes social and search engine marketing, online presence, and e-commerce websites.Around the world, Oceanian countries reach some of the highest SME e-commerce penetration rates. About 40 to 50 percent of Australia and New Zealand's small and medium-sized businesses receive online orders. European Union (EU) countries also rank high in SME digitalization. As of 2023, at least 75 percent of small EU enterprises had launched their own website. However, that does not mean that all small companies engage in e-commerce. At the EU level, only 20 percent of small enterprises (10 to 49 employees) and 30 percent of midsize firms (50 to 249 employees) made e-commerce sales via websites. European countries such as Lithuania, Sweden, and Denmark enjoy e-commerce adoption rates of over 30 percent among small businesses, the highest in the continent. However, this remains a significant gap to bridge when compared to the share of EU firms that have a website.
Where do small e-commerce businesses thrive?
One of the main obstacles for SMEs to launch an online sales business is the high initial cost of developing their own e-commerce platform. For that reason, small firms that intend to dive into e-commerce usually start by offering their products and services as third-party sellers on widely known online marketplaces, such as Amazon or eBay. In China, third-party sellers who sold cross-border on Amazon generated the largest gross merchandise value, estimated at 238 billion U.S. dollars in 2023. On the 2022 Amazon Prime Day, SMEs worldwide harvested three billion U.S. dollars in sales. But not everything in the Amazon garden is rosy: at least four in ten surveyed small U.S. businesses believe that you cannot build a successful brand by simply jumping on the bandwagon of the all-purpose Amazon marketplace.
