eBay Canada report shows how reliant merchants are on cross border trade
eBay Canada’s annual SMB Optimism Index report has been published and reveals that optimism among small retailers is on an upward trajectory despite challenging circumstances. This year confidence amongst those surveyed has grown and clocks in at 76%. They note that that is a consistent one-point-per-year increase since the Index launched two years ago.
The report, which explores business growth trends, challenges and opportunities among Canadian retail small and medium sized businesses, reveals that those who export are among the most optimistic, scoring 79% on the Index. Nearly half (47%) of exporting retailers project their export sales will increase over the next five years (13% anticipating a significant increase), and they are far more likely than their non-exporting counterparts to believe that there are new market opportunities for their business, both international and domestic (79% vs. 49%, respectively).
By far the most important export market for Canadians, needless to say, is the United States. Indeed, the U.S. continues to grow as Canada’s largest export market: there was a 48% increase in the number of retail merchants exporting to the States during last year alone. Of those businesses currently exporting, one quarter see the majority of their sales coming from the USA.
Exporting is key to unlocking growth opportunities, and technologies like ecommerce and global marketplaces like eBay are democratizing global trade like never before — there is good reason for increased optimism among the Canadian SMB community. Given its size, proximity and similarities to Canada, the ability to tap into U.S. market demand is particularly vital for Canadian SMBs looking to scale.
– Andrea Stairs, General Manager, eBay Canada & Latin America
This report is particularly salient in the light of the new North American trade agreement between Canada, USA and Mexico that was revealed last week but which will likely take considerable time to ratify and come into force. In response to the new trade deal, eBay Canada was keen to point out the problems with it, as we wrote about just a few days ago: eBay offers guidance on new North American trade deal.