Small and medium-sized businesses rely on ecommerce for international growth, FedEx study

FedEx Corp.’s Small Business Trade Index data shows that the growth of ecommerce is vital to U.S. small and medium-sized businesses (SMBs).

More than 90% of the 1,000 SMBs said ecommerce platforms have been key to facilitating global trade. At the same time, 86% say global trade has been an important growth driver for their businesses. The FedEx small business trade index also confirmed that U.S. small business decision-makers face additional challenges, with the majority reporting shipping delays or disruptions due to geopolitical issues as a main barrier (84%).

More than two-thirds of U.S. small business executives rely on imported goods for production or as merchandise to distribute domestically. These businesses report they export products that utilize imported materials, and 82% say the ability to import products or components from overseas directly supports jobs within their company.

Most of the business leaders report that compared to 10 years ago, they are more likely to believe global trade stimulates growth, creates jobs and fosters innovation. They also recognize the importance of retraining or reskilling individuals impacted by increased trade. An overwhelming majority (95%) support prioritizing job retraining and upgrading skills among workers to help the U.S. compete globally.

FedEx is a shipping carrier for 478 retailers.

Morning Consult conducted the survey for the FedEx Small Business Trade Index between Feb. 14 and 24, 2024. It asked SMB leaders about their perceptions of the economy and trade. It also analyzed how technology and other trade policies impact U.S. business growth.

86% of small business decision-makers credit ecommerce platforms for fueling global trade, propelling business growth, according to FedEx and Morning Consult data.

Similarly, 64% of decision-makers at these companies said they “lean on” ecommerce platforms such as Shopify to grow their businesses internationally. And 60% said online marketplaces including Amazon, Mercado Libre and Alibaba help them grow.

At the same time, three-quarters (75%) of these businesses consider the cost of an international ecommerce consultant to be a challenge. More specifically, 45% consider it a minor challenge and 30% a major challenge.

95% of SMBs said Japan is “very important” or “somewhat important” for the U.S. to maintain trade with, and 91% said the same about the U.K. After that, the countries these SMBs considered most important for trade were: China (89%), Germany (88%), India (87%), South Korea (83%), Brazil (81%), Kenya (66%).

Other key findings are:

• 91% recognize the pivotal role of technology in driving economic growth and fostering international collaboration.
• 86% consider selling goods internationally to be important to the growth of the business
• 84% pinpoint shipping delays and 83% highlight import/export fees as major hurdles. They emphasize the need to navigate complex trade landscapes effectively.