Foreign markets such as China and Malaysia hold immense potential for small businesses in the U.S. Yet only a small percentage of businesses are exploring this opportunity.
According to data compiled by London-based financial services company WorldFirst, the total value of worldwide B2C cross-border ecommerce is expected to reach $424 billion by 2021. Only 3.9 percent of U.S. small businesses, however, are exporting goods today.
In comparison, eight percent of European small businesses are trading abroad.
Small Business Export Opportunities
Why Small Businesses Must Look Beyond North America
With more than 70 percent of the world’s purchasing power, foreign markets offer lucrative opportunities for businesses to thrive.
But it’s not just profitability making foreign markets desirable. Sixty-nine percent of U.S. small businesses say it’s “easy to moderate” to begin selling internationally.
What’s more, U.S. companies selling internationally are 8.5 percent less likely to go out of business.
Businesses Need to Focus on Ecommerce
Ecommerce plays a crucial role in reaching foreign markets data from WorldFirst shows.
Sixty-six percent of consumers worldwide make ecommerce purchases from sites outside their home countries. But the majority of small businesses remain ill-equipped to reach these customers as 74 percent of small business websites have no ecommerce.
Of even greater concern, WorldFirst finds 28 percent of U.S. small businesses lack even a website. Clearly, these small businesses lose out on some very attractive growth opportunities simply by failing to develop a web presence of any kind.
With a solid export strategy, small businesses in the B2C domain can achieve success.
To understand how cross-border ecommerce can benefit your business, check out the infographic below:
Logistics Photo via Shutterstock
This article, “Only 4% of U.S. Small Businesses Are Exporting, Missing Out on a $424 Billion Opportunity” was first published on Small Business Trends