Is eCommerce a threat to US businesses?
- Posted On: August 20, 2014
- Category: International Marketing
- Posted By: admin
Last Updated on
eCommerce as a sector has been trending between 10%- 14% growth on average in the USA, and is predicted to be a $434 billion sector in the USA alone. So if that is just the US alone, extrapolate that out into the global market and it is not rocket science – eCommerce is the way to go. As an eCommerce advocate, Hema Dey, CEO of Iffel has spent time reviewing how US companies can leverage eCommerce to increase exports. Stating “I am shocked at some of the findings from recent discussions with consumers, CEO’s and market statistics”, Ms. Dey expressed her concerns at a recent discussion with the Office of Foreign Trade, Riverside, CA.
“The senate has passed local online sales tax, we are busy waiting on congress but right before our eyes, our Global competitor China is selling to US consumers tax free!” says Ms. Dey.
eBay has empowered China eTailers to promote products on eBay, sell and ship direct from China and for the most part with free shipping. Pricing is low, well lower than what a US company would ever sell goods at.
How are the Chinese doing this?
1. eBay does not restrict trade both domestic and international. According to several CEO’s in California, container shipments into the Ports of Los Angeles or Long Beach are taking longer to clear and direct small parcel shipments are getting through customs faster. Small parcel inspection is minimal and the process less tedious than container shipments. So it now makes sense for China to ship in thousands of small parcels than container loads.
2. eBay has set up www.eBay.cn to help Chinese eTailers sell to the USA, there are videos on there to teach Chinese businesses how to set up and account and sell to the USA consumer. www.eBay.cn is not geared up as a trading platform.
3. Payment is made on the Internet via Paypal and the process is seamless for many. But what is the threat here to the USA while China harvests sales from the US population? Ranked 6th in the world for a nation as dynamic and powerful as the USA is simply unacceptable.
Is this a threat to US Businesses? Absolutely it is. Why?
China selling direct to the US population at prices that local companies cannot compete with. The threat here is revenue leaving the USA instead of remaining within the country. Consumer Protection – do we know if these items have been approved for use by USA consumers? The threat here is the safety and well being of USA consumers. This applies to electrical products, garments, etc. Tax FREE! Perhaps the senate has been blind sided with the debate around local online sales tax. The bigger issue is border protection, taxing imports into the USA through eCommerce.
Iffel International is convinced eCommerce will boost USA exports, it is time for government and private sector collaboration on how best to structure a sustainable growth platform for US businesses using eCommerce. Further debate to be held on Google+ Hangouts, if you are interested in participating please email Ms. Dey at email@example.com.
Article Taken from:
Dey, Hema. “Is ECommerce a Threat to US Businesses?”
Riverside County Export Magazine 1 Aug. 2014: 14, 15. Print.
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