FedEx Finds 90% of SMBs Rely on Ecommerce Platforms to Boost International Growth

The ecommerce landscape is growing at a phenomenal rate, presenting an exceptional opportunity for small and mid-sized businesses (SMBs) to unlock new revenue and increase profits. According to a recent report shared by FedEx and Morning Consult, over 90% of surveyed SMBs say ecommerce platforms have been crucial to facilitating global trade.

Another 86% said that global trade has emerged as a crucial growth driver for their organizations. Not only does global trade provide companies with new ways to reach customers and increase conversions, but it opens the door to other growth opportunities, too.

For instance, 82% of leaders in the survey said the ability to import goods from overseas directly influences the development of new roles within their company. Unfortunately, while the benefits offered by ecommerce solutions are significant, there are still challenges to overcome.

The Rise of Ecommerce: And the Challenges SMBs Face

The recent report from FedEx highlights the evolving nature of the ecommerce landscape, which is currently set to reach a value of more than $43.73 trillion by 2030. Direct access to global trade opportunities has sparked a revolution in the SMB landscape.

In fact, FedEx’s study found that compared to 10 years ago, most business leaders are now more likely to believe that global trade fosters innovation, stimulates profitability, and creates jobs. However, there are still challenges for SMBs to overcome. 

Small business decision makers in the US, in particular, are still struggling with disruptions to shipping and logistics processes, caused by a range of external and internal factors. 

This suggests that for companies to unlock the full benefits of international trade in the modern landscape, they need to find ways to effectively capitalize on the ecommerce opportunity, improving shipping strategies, partner relationships, and employee training initiatives.

5 Tips for SMBs Capitalizing on the Ecommerce Opportunity

While global trade opportunities can significantly increase sales and unlock new opportunities for companies to create more lucrative products for customers, the path to international selling requires a structured, strategic approach. 

Here are some of our best tips for SMBs that want to take advantage of the benefits offered by global trade, and ecommerce selling. 

1. Master International Logistics and Freight

Global trade presents a number of logistics challenges for smaller businesses. Whether you’re exporting products to a new region or importing supplies from different countries, there are various hurdles to address. Business leaders need to ensure they’re familiar with the local nuances of different markets when it comes to border controls and customs requirements. 

They also need to ensure they have full visibility into their logistics strategy, ensuring they can handle delays effectively, overcome common issues that can harm customer experiences, and keep costs low. 

Working with a digital freight forwarder can help here, as it gives SMBs a convenient way to compare carriers and rates, choose the most efficient routes for shipping, and monitor the progress of shipments in real-time. 

Some freight forwarders provide other forms of assistance to SMBs, helping them choose adequate insurance to protect their goods, create essential documents, or navigate customs. This support will be crucial for any SMB using global import and export options to facilitate growth.

2. Prioritize Customer Experiences

Global trade can empower companies to transform product development processes, reduce operational costs, and increase their reach to new customers. However, SMBs will only see a direct impact on their growth potential if they focus on putting customer experiences first. 

Conducting research into customer preferences and market dynamics is a good first step. This will enable organizations to identify opportunities to create new products and solutions in markets where purchasing behaviors and preferences are constantly evolving.

Leveraging the latest technology is crucial. Business leaders will need to ensure they’re utilizing ecommerce platforms that simplify customer journeys, making it easy to search for products, purchase items, and even track orders after they’re shipped. 

Many ecommerce platforms now even integrate with tools that help organizations enhance customer service, such as chatbots that can offer 24/7 support and deliver personalized product recommendations to buyers. 

3. Take Advantage of Ecommerce Platforms

To unlock the full benefits of global trade and increase growth, SMBs will need to be open to embracing the latest cutting-edge technology. This starts with choosing an ecommerce platform that makes it easy to manage business operations. 

Cutting edge platforms that offer robust inventory management tools, integrations with warehouse management solutions, and direct connections to supplier networks will help companies track important data and discover new opportunities for growth. 

Some solutions can even automate certain processes, like ensuring requests for supplies are promptly submitted to manufacturers when inventory levels run low, or alerting customers when their orders are delayed due to issues outside of your control. 

These tools can also help facilitate ongoing growth by allowing companies to leverage integrated marketing tools for email, social media, and other channels, which assist in nurturing, converting, and retaining customers. 

4. Use Data to Drive Decision Making

Data is fundamental to ensuring you’re preparing your SMB for sustainable growth in the era of ecommerce and global trade. 

Data-based insights can ensure that you’re partnering with ideal suppliers and vendors, improving customer experiences, and investing in the most optimal product opportunities. Leverage tools that allow you to track customer behavioral data, purchasing patterns, and market trends, to inform your inventory management strategies and your promotional plans. 

Use AI-powered reporting tools to uncover hidden insights into emerging customer preferences and new sales opportunities, and leverage Google Analytics to learn more about the journey customers take when interacting with your ecommerce store.

The more data you gather about everything from your customers to your supply chain, the more effectively you’ll be able to optimize operations, increase sales, and reduce costs.

5. Invest in Employee Training

Finally, it’s worth remembering that embracing global trade and ecommerce requires even SMBs to invest in top talent and human resources. As the FedEx report mentioned above notes, around 95% of today’s SMBs are prioritizing retraining and upskilling initiatives to help prepare teams to handle more complex supply chains, logistical processes, and world-wide selling initiatives.

Ensuring your team members know how to take advantage of technology to sell to customers worldwide and source products from manufacturers will be crucial. Providing training and resources