Australian small to medium businesses are being urged to get ‘e-trade’ ready as the global online economy kicks into overdrive.
According to research conducted by digital payment provider, PayPal, six core markets - Australia, US, UK, Germany, Brazil and China, are expected to triple online cross-border purchases to $307 billion by 2018.
Australian online sales to foreign buyers is forecast to grow to $16.1 billion by 2018, according to PayPal.
PayPal produced a white paper on cross-border trade to help small businesses take notice of online growth potential.
“Real and virtual barriers to trade are rapidly disappearing, helped by the growing use of the internet for commerce and enabling payment platforms,” PayPal Australia small business director, Emma Hunt, said. “These factors, combined with resource-rich economies entering the global online marketplace and Australia’s reputation for producing quality goods and service, have all created unprecedented opportunity for our small businesses to expand into new markets, find new customers, and diversify their income streams.”
PayPal highlighted that Australian businesses were well prepared to ride the wave of global trade activity, given its ranking as the top e-trade ready nation and its use of electronic payments, affordable internet access, high smartphone penetration, and support by a well-developed regulatory framework for commerce.
In June, PayPal launched PassPort, giving SMBs access to verified information about relevant rules and regulations in key countries, including ‘how-tos’ about leveraging the national characteristics and traits of export markets to maximum advantage.
“Increasingly Aussie SMB owners understand that cross-border trade is essential for successful business development, but they are often constrained by two scarce resources – time and money. By continuing to enhance the digital and market literacy of our merchant partners with tools such as PassPort, PayPal helps SMB owners save valuable time,” Hunt said.