Unlocking the UK’s E-Commerce Export Potential: An Amazon Perspective

The UK economy has had its fair share of ups and downs recently, making it crystal clear that we need fresh, exciting ways to fuel SME growth. This is where e-commerce exporting comes in offering a game-changing avenue for businesses to get growth and kickstart economic recovery.

In 2022, the Social Market Foundation published an eye-opening report that kickstarted something big - the formation of the UK industry-wide E-Commerce Trade Commission! I’m thrilled to be part of the Working Group for Emerging Markets, driving forward the agenda to help SMEs thrive globally.

That initial report, ‘Just a Click Away’, was supported by Amazon UK, and they brought some incredible insights to the table. Their UK Country Manager, John Boumphrey, shared how e-commerce is a game-changer for SMEs looking to break into international markets. With their experience of working with hundreds of thousands of UK SMEs, Amazon had plenty of valuable lessons to share from the UK market which is already a leader in the adoption of digital marketplaces.

Summary of Amazon’s Insights on E-Commerce Exporting for UK SMEs

1. E-Commerce is a Growth Engine for SMEs
   Over half the 85,000 SMEs on Amazon Marketplace are already smashing it globally, generating £3 billion in export sales in 2021. But here’s the problem: only 6% of medium-sized UK firms are tapping into e-commerce to sell internationally. There’s a huge opportunity just waiting to be seized.

2. Digital Skills Gives Big Wins
   To boost e-commerce exports, UK businesses need stronger and sharper digital skills. Amazon’s Small Business Accelerator, which has trained over 600,000 SMEs in digital capabilities to up their game, proving just how powerful these skills can be for taking on the global market.

3. Public-Private Teamwork Makes the Dream Work
   When government, business and e-commerce players join forces, amazing things happen. Take Amazon’s collaboration with the Department for International Trade (now the Department for Business and Trade) as part of the government’s bold Export Strategy, ‘Made in the World, Sold in the UK’ plan to hit £1 trillion in exports annually. Their export bootcamps and webinars have given UK SMEs the tools to grow online.

4. Addressing Structural Barriers
   Navigating challenges like customs, tariffs and logistics can feel like a maze for SMEs. That’s why we need a united effort from policymakers, business leaders and online marketplaces to smooth the path and make global trade simpler and without friction.

5. The Role of Digital Marketplaces
   Digital marketplaces like Amazon are vital for UK SMEs to give them the global visibility they need to shine. With minimal upfront costs, these marketplaces offer businesses a chance to thrive internationally.

6. A Win-Win for the Economy
   When SMEs go global, everyone benefits. E-commerce exports don’t just fuel growth for individual businesses, they boost the UK economy as a whole, creating jobs and strengthening our standing in the world of trade.

Building the Future of UK E-Commerce Exports

The UK is poised to lead the way in e-commerce exporting, but this requires a concerted effort to overcome barriers, enhance digital skills and foster collaboration. By focusing on these priorities, we can unlock the vast potential of UK SMEs, ensuring they thrive in the global digital economy.

As someone deeply involved in the E-Commerce Trade Commission and global e-commerce, I am passionate about advancing these goals and supporting SMEs in their journey to global growth. Together, we can scale our collective efforts to empower UK businesses to succeed in international markets.