The UK economy could be boosted by billions of pounds by increasing business access to e-commerce says a report.
The report, sponsored by the Social Market Foundation (SMF) think-tank and retailer Amazon, shows that even a moderate increase in e-commerce exports could create 76,000 full-time jobs and boost economic output by £4.6 billion.
The report – entitled ‘Just a click away: How e-commerce can boost UK exports and growth’ – polled 506 SMEs, with an equal split of exporting and non-exporting businesses.
The survey, which also included contributions from the Institute of Export & International Trade (IOE&IT), identifies the “significant untapped potential” of UK businesses and highlights several barriers and benefits to increasing online sales for exporters.
Noting that Britain had suffered “a somewhat unique decline in its exports” post-Covid, the report highlights that e-commerce could be a vital tool in rebooting the country’s foreign trade and makes recommendations which call for:
- A specialist e-commerce office within the Department of International Trade
- A “starting exporting” grant scheme for SMEs to encourage more exporters
- The ratification of a WTO e-commerce agreement
Lower costs associated with selling online were described as an opportunity for British SMEs, which currently lag behind their larger counterparts in terms of trading internationally. Export companies were enthusiastic about the benefits of e-commerce. The survey found:
- 33 per cent said e-commerce helped to build customer trust
- 31 per cent said their payment risks were reduced
- 30 per believed it helped resolve problems/disputes with customers
- 29 per cent said it encouraged a higher general brand awareness
However, the report found that 30 per cent of non-exporting businesses think customs issues were the main barrier to selling goods abroad, with others citing logistics, tariffs and taxes as major inhibiting factors.
The study found British SMEs were also behind international competitors, with only eight per cent of UK companies with over 10 employees making cross-border e-commerce sales to EU countries, compared to 14 per cent and 18 per cent for their Dutch and Irish counterparts.
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