SAN JOSE, Calif., Feb. 11, 2020 /PRNewswire/ -- eBay Inc.
(Nasdaq: EBAY), a global commerce leader, today announced the
launch of its Global Marketplace Index (GMI) measuring the impact
of online marketplaces like eBay in creating economic opportunities
that empower small business owners and entrepreneurs.
The platform-agnostic study revealed that, for small business
owners around the world, selling through online marketplaces has
enabled them to contribute to keeping "Main Streets" in their local
communities booming while also allowing them to feel financially
secure in their venture. The results were particularly interesting
in the U.S.:
- Online marketplaces have had a positive impact on local
communities in the United
States:
-
- Nearly half (44%) of U.S. small business owners say that
selling through online marketplaces allows them to keep their
physical stores open.
- When store owners were asked how the additional income from
selling through marketplaces has helped them, 23% responded that
they were able to reinvest in their communities.
- 33% percent of U.S. small businesses, with annual marketplace
sales greater than $200K, use this
income to reinvest in their community.
- Online marketplaces provide U.S. small business owners with
financial security:
-
- Of U.S. small business owners surveyed, 77% agree the income
from building an online business gives them financial security and
an even higher percentage of physical store owners (89%)
agree.
- About half (48%) of U.S. small business owners have been able
to get out of debt using the money they make from
marketplaces.
- 37% of U.S. small business owners say that the income from
selling through online marketplaces has helped them rebuild their
savings after an economic downturn, 31% have been able to save for
a child's education, and 30% say they've used the money to pay
their mortgage.
"It's fantastic to see that small business owners – particularly
in the U.S. – are able to leverage online marketplaces, like eBay,
to support their day-to-day financial and familial needs," said
Marni Levine, Vice President Seller
Operations and Engagement at eBay. "Since the company's earliest
days, eBay has viewed ecommerce as a gateway to economic
empowerment for entrepreneurs and small businesses by providing a
pathway to reach new buyers online with little barrier to entry,
regardless of size, background or geographic location."
The survey additionally found that the majority of U.S. small
business owners (69%) claim their income has improved compared to
before selling through marketplaces and over 50% say that selling
through eBay or other online marketplaces expands their reach so
that a majority of their sales come from outside their local
community.
The GMI identifies five (5) universal dimensions as drivers of
empowerment – Lifestyle Impact, Financial Security, Financial
Growth, Marketplace Tools and Business Environment. To quantify
performance within these dimensions, 2,500 small online business
owners were surveyed across five countries (United States, United Kingdom, Germany, Australia and South
Korea). Each dimension is equally weighed at 20 points,
resulting in a maximum index score of 100 points.
Each country scored above 80 in the GMI, demonstrating that
small businesses are greatly empowered by selling through
marketplaces. According to the survey, 85% of small business owners
around the world feel their online business gives them freedom or
flexibility and more than 77% say their online business gives them
confidence or control. GMI scores for each country are as
follows:
Country
|
United
States
|
Australia
|
United
Kingdom
|
Germany
|
South
Korea
|
GMI
Score
|
88.4
|
84.3
|
83.4
|
82.1
|
80.2
|
"Marketplaces like eBay have proven that ecommerce plays an
important role in empowering entrepreneurs," said Scott Schenkel, interim-CEO of eBay. "Given the
critical role that small businesses play in fostering economic
development and a more inclusive global society, it's essential
that we continue to strengthen these businesses and their local
communities, as we've done for nearly 25 years."
To create the GMI, eBay commissioned leading market research
firm Euromonitor International. To read the full GMI report, please
visit ebayinc.com/GMI.
Global Marketplace Index Methodology
Through 75 in-depth interviews with small business marketplace
sellers, Euromonitor found that small business owners universally
responded that their drivers of empowerment are the positive
impacts on their lifestyles and their wallets. Furthermore,
marketplaces must provide the tools and support to enable these
positive impacts. Lastly, small business owners emphasized
that they could only feel empowered when economic and regulatory
conditions in their countries were favorable to their online
business success. Based on these interviews, five universal
dimensions of empowerment were identified – Lifestyle Impact,
Financial Security, Financial Growth, Marketplace Tools and
Business Environment.
To quantify performance within the dimensions, 2,500 small
online business owners were surveyed across these countries and
sharp external data points were leveraged. The Global Marketplace
Index is scored on a 100-point scale resulting from an aggregation
of the total points achieved in the various dimensions. Each
dimension accounts for 20 points and has one or more indicators,
which quantify the country's performance in the area.
About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader including
the Marketplace, StubHub and Classifieds platforms. Collectively,
we connect millions of buyers and sellers around the world,
empowering people and creating opportunity for all. Founded in 1995
in San Jose, California, eBay is
one of the world's largest and most vibrant marketplaces for
discovering great value and unique selection. In 2019, eBay enabled
$90 billion of gross merchandise
volume. For more information about the company and its global
portfolio of online brands, visit www.ebayinc.com.
Media Contact: Ashley Settle,
assettle@ebay.com
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SOURCE eBay Inc.