The opportunity economy ― how marketplaces are fueling a boom in online entrepreneurs

Racing to keep up with a rapidly evolving digital world can be exhausting for everyone, and when you’re just starting out, it is even more important to find that competitive edge.

For digital businesses — whether that’s an artisan baker in L’Aquila, Italy, or a car parts business in Birmingham, UK — the ability to easily access a large, global online market is critical.

As the digital world rapidly evolves, making use of online marketplaces like eBay is increasingly integral to the success of Europe’s diverse community of small retail businesses based everywhere from country villages to capital cities. It’s like putting your goods into a virtual shopping center or high street, where you will have a regular stream of visitors and windowshoppers.

The contribution that small businesses make to the European economy as a whole cannot be overemphasized. This year, the European Commission estimates that 99 percent of all businesses in Europe are SMEs, and it recently stated that companies of this size provide more than two thirds (67 percent) of total employment for the region.

With almost half of Europeans3 now viewing e-commerce as the best way to become an entrepreneur, it’s no exaggeration to say that supporting small online businesses will help boost entrepreneurship and growth across Europe.

1: Tap into an huge global customer base

Online marketplaces enable small businesses to access crossborder trade opportunities, and expand their consumer base beyond their owned website or bricks-and-mortar store. An unprecedented number of businesses are now taking advantage of eBay’s global export market of 169 million customers, who purchased $84 billion worth of merchandise last year. To put this into context, the eBay customer base is more than double France’s population (66.5 million) and almost four times that of Spain (46.4 million).

2: Export globally

Leveraging e-commerce and global shipping programmes, European online businesses are now successfully marketing to an increasingly global audience. In Spain, eBay businesses exported to 25 countries on average in 2015, up from 21 countries two years previously, while Italian businesses exported to 18 countries on average in 2015, compared to 16 in 2014. On top of this, more than half of businesses in France (57 percent) and the U.K. (55 percent) now export to four or more continents.

3: Adapt to consumer trends

Analysis of new businesses registering on eBay last year reveals that the most popular product categories vary across Europe: Consumer electronics led the business registrations in Spain (28 percent) and France (27 percent) last year; while Clothes, Shoes and Accessories was the dominant category in Italy and the UK (both 26 percent); and Home and Garden sellers (26 percent) dominated in Germany.

Despite the differences between countries, it is interesting to note that Toys was a thriving category across all of Europe — registrations from business sellers in this category increased by more than 100 percent between December 2015 and December 2016, across the five countries mentioned.

All countries and all sectors are on a journey towards a greater share of sales going online. But recognizing these country variations will enable small businesses to tailor their marketing and product base.

4: Grab the opportunity, identify the right partner

A recent survey commissioned by eBay revealed that 57 percent of respondents in Europe believe starting an online commercial business would give them greater fulfillment and financial independence. Looking at future generations of entrepreneurs, there is a clear interest in online retail, with 61 percent of 18-24 year olds in Europe saying they want to use e-commerce to build a successful business.

With low upfront costs to set up your business, starting out online enables retail entrepreneurs to quickly and easily test their business ideas with a global customer base. Marketplaces can offer support such as data and insights, as well as tools to help you promote your business online.

With the support available on eBay, it is no coincidence that there are more businesses turning over a million pounds or Euros than ever before.