Visual Executive Summary for the 2015 U.S. Small Business Global Growth Report

1. A World of Opportunity for Every American Small Business
2015 U.S. SMALL BUSINESS
GLOBAL GROWTH REPORT
EXECUTIVE SUMMARY

2. Over the last decade, the possibility of small businesses competing with
large enterprises in global commerce has shifted from a concept to reality.
eBay has been at the heart of this revolution, and we recently analyzed our
data to uncover the benefits of businesses that use the Internet to scale
through global commerce. Our infrastructure has empowered hundreds of
thousands of small businesses to grow their businesses globally and export
to customers worldwide.
In the 2015 U.S. Small Business Global Growth Report, we identify trends that
demonstrate the unprecedented global trade activity of U.S. small businesses.
SURVIVING AND THRIVING THROUGH GLOBAL TRADE
Maintaining an exporting business has traditionally been very difficult
because of the high capital and compliance costs. World Bank data
demonstrates that only 15 percent of exporting businesses are still
exporting after 3 years. In contrast, eBay data demonstrates that
74 percent of small businesses that were exporting in 2011 were still
exporting in 2014.
The Internet has allowed us
to have the entire world
as our marketplace.
Fred Krause, Owner,
ATR Computers, Inc.
Nearly twenty years ago, eBay was
founded with a simple idea. An open
and fair marketplace can create
immense value and become a force
for good in society.
That simple, yet profound idea
is one of the main reasons that I
joined eBay. We’ve created a level
playing field for all sellers on our platform, regardless
of size. Whether it’s realizing the value of those shoes
collecting dust in your closet or the ability to keep your
main street business open because you now have
access to customers around the world — eBay is enabling
commerce, fostering economic opportunity and making an
impact on society with each transaction.
The impact of our technology on small business is great,
and that excites me. In fact, our data shows that more than
90 percent of U.S. small businesses on our platform export.
And of those exporters, 190,000 are exporting to four
continents or more. Compare that to overall small business
trade activity, where less than five percent of businesses
export, according to U.S. Census data. Talk about creating
economic opportunity.
In this report, we analyzed eBay trade data to understand
the way U.S. small businesses are using technology to scale
and trade globally. We will use this information to help us
refine our platform and better serve our sellers. And, as
champions for small business, we will continue to work
with our industry peers, government and development
agencies to help break down trade barriers.
Small businesses are part of what make this company
uniquely eBay. I am inspired each day by them and their
ability to drive an amazing commerce experience for
millions of customers around the world. And I am proud of
the role we can play to help make their success possible.
After all, when small businesses win, we all win.
Devin Wenig, CEO
A WORLD OF GOODS, AN OPPORTUNITY FOR ALL
U.S. BASED SMALL BUSINESSES ON EBAY’S PLATFORM
EXPORTING TO 15+ MARKETS: 2007–2014

3. Moreover, the ability to trade
provides meaningful growth
benefits. Businesses focused
on the domestic market on the
eBay platform grew 58 percent
between 2010 and 2014;
whereas export-oriented
businesses grew 91 percent
during that same time frame.
Additionally, since 2004, exports on
the eBay platform have grown nearly
300 percent, whereas exports in the
overall U.S. economy have grown
less than 100 percent.
EXPLORING THE WORLD AS GLOBAL TRADERS
This report shows that almost all U.S. based small businesses on eBay*
export. In 2014, U.S. tech-enabled small businesses reached 215 markets
through the eBay marketplace. Of those selling $10,000 or more on the
platform, more than 90 percent exported, while less than 5 percent of their
traditional small business counterparts engaged in the opportunity. The
breadth of their reach is also significant: 80 percent of U.S. tech-enabled
small businesses exporting reach five or more markets, while only 14
percent of traditional exporters manage to reach that many.
The ability to connect with nearly every corner of the world provides hundreds
of thousands of “local” small businesses with the benefits of global revenue
while maintaining a local presence and contributing to the economy. For
example, the Trans-Pacific Partnership countries are home to 793 million
consumers.1
35 percent of U.S. based small businesses have leveraged eBay
to export to those countries.
CREATING A MORE INCLUSIVE MODEL OF GLOBAL COMMERCE
eBay is truly a global platform to grow businesses of every size. While the
top 5 percent of traditional businesses (by size) account for 82 percent of
exports, the top 5 percent of technology-enabled small businesses account
THE REACH OF U.S.-BASED TECH-ENABLED SMALL BUSINESSES
LEVEL CONTINENTS REACHED # OF SMALL BUSINESSES
International 2 32,649
Multinational 3 56,373
Global 4+ 190,038
It’s created a huge opportunity
for additional growth as well
as stability to our business.
Having a larger overall customer
base helps to insulate small
businesses from the effects of
individual domestic, political or
currency related problems.
Andy Logan, Owner,
Performance Product Technologies
The Internet has allowed our
third generation family-owned
business to grow over 40 percent
by reaching beyond our local area.
Selling internationally enabled
us to increase our buying power,
add employees and carry more
products that sell to a more
diverse group of customers.
Steve Douge, Director of Online Sales,
Hardware Sales
SMALL BUSINESS REVENUE GROWTH:
2010-2014
EXPORT-ORIENTED
SMALL BUSINESSES
ON EBAY
DOMESTIC-FOCUSED
SMALL BUSINESSES
ON EBAY
TECHNOLOGY IS CREATING A LEVEL PLAYING FIELD FOR
SMALL BUSINESSES ON EBAY’S PLATFORM, REGARDLESS OF SIZE
The top 5% of small businesses on eBay’s platform account for 55% of the exports on eBay
Looking at businesses overall, the majority of exports are sold by just the top 5% (by size)

4. for just 55 percent of exports. With the eBay platform, newcomers not only
have access to the same customer base as established businesses, but
they also are able to scale up quickly and compete globally regardless of
their physical location.
BREAKING DOWN THE BARRIERS TO ECONOMIC OPPORTUNITY
Small business global trade has been held back by barriers such as shipping,
language and customs. Innovations launched on eBay’s platform — including
aggregated shipping programs, improvements in machine translation and
international customs expertise — have started to ease the burden these
barriers place on small businesses. In just a decade, we’ve seen a two-
thirds reduction in language as a barrier to trade by U.S. sellers.
eBay alone cannot tackle the all of the barriers to global commerce, which
is why we take our role as an advocate for small businesses seriously, and
continue to encourage our industry peers, government and development
agencies to take additional steps to break down common trade barriers.
We support reforming and simplifying customs regimes, as well as raising
de minimis levels (the threshold below which import duties are exempt from
duties and paperwork). As a champion for small businesses, we have also
helped small businesses across the U.S. send over 50,000 e-mails to their
congressional representatives in support of the Trade Promotion Authority bill.
The 2015 U.S. Small Business Global Growth Report shows that technology
is in fact changing global trade by opening up new export opportunities to
smaller enterprises and entrepreneurs. eBay is proud to be enabling this
transformation in globalization.
EBAY’S PLATFORM EASES THE BURDENS ON SMALL BUSINESSES
LANGUAGE
Improved machine
translations
SHIPPING
Aggregated shipping
programs
CUSTOMS
International
customs experts
SOURCE:
1. U.S. Trade Office, https://ustr.gov/about-us/policy-offices/press-office/fact-sheets/2013/December/
TPP-Economic-Benefits
We’ve been able to grow more
quickly, hire more people and sell
more products because we’re
able to sell so well overseas.
Sarah Davis, Owner,
Fashionphile
We’ve also had two companies
spin off into completely new
ventures. If we can expand our
cross-border trade in those new
companies, then that means more
opportunity for our community.
Richard Baccus, Owner,
ABC Vacuum Warehouse
*For this report, we define small businesses on eBay as those selling $10k or more annually.