Huge opportunities for SMEs in cross-border e-commerce: PayPal: Page 2 of 2

Ottevanger said that the global market has made cross-border e-commerce a rising force in Malaysia’s foreign trade sector, offering millions of enterprises, most of which are SMEs, a brand-new business model to expand beyond the domestic market.
 
Today, SMEs in Malaysia face tough competition from larger players, as well as high operating costs. They also typically have less market visibility and do not have the capital to spend on expanding physically across borders. 
 
When asked about typical factors hindering SMEs from jumping on board the e-commerce train, Ottevanger said PayPal has found that that SMEs which are not leveraging on e-commerce today have simply not realised the immense opportunity it presents them, or are unsure about how to go about selling online across markets with the right tools and partners.
 
According to her, for SMEs especially, e-commerce negates the need for physical infrastructure investments in new markets, and gives them the edge to compete on a global stage. This can open up new revenue streams and increase profitability by reaching out to millions of international customers, even from the comfort of home.

As the world becomes increasingly connected, the option to buy and sell online presents the opportunity for businesses looking to move beyond traditional brick-and-mortar environments, and tap into new channels of revenue with existing product lines which may be in demand globally.
 
“This is why we believe that in order to stay successful, they need to expand overseas by engaging in cross-border trade online. Enabling SMEs has always been a core part of PayPal’s business and we are well positioned to help them overcome these barriers and explore additional revenue streams by growing cross-border,” she said.
 
With 14 years under its belt, PayPal currently has 123 million active accounts in 190 markets worldwide and supports payments in up to 25 currencies.
 
Globally, cross-border trade accounts for 25% of PayPal’s revenue, and Ottevanger said there was plenty of room for growth, with the company's data showing increasing willingess from merchants who are starting to realise the opportunity of selling abroad.

Top export corridors in Malaysia (YOY growth): 


• United States (19%)

• Australia (19%)

• Singapore (40%)

• Japan (57%)

• China (35%)


Emerging corridors presenting more opportunities:

• Israel (61%)

• Russia (48%)

• Indonesia (20%)

• Thailand (32%)

• Philippines (75%)

Top Cross-Border Trade Categories

1. Computers, accessories and services
2. Books & Magazines
3. Electronics
4. Clothing, Shoes & Accessories
5. Beauty & Fragrances 

Top Cross-Border Trade Mobile Categories

1. Auto-parts
2. Software
3. Fashion
4. Houseware
5. Arts & Crafts

“Our focus in Malaysia is to continue to help local merchants realize the e-commerce opportunity and reach millions of customers around the world via the online channel while enabling safe buying and selling for both merchants and customers across multiple platforms,” she said.
 

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