eBay Canada
releases SMB Optimism Index and announces 12th annual
Entrepreneur of the Year Award winners
TORONTO, Oct. 19, 2016 /CNW/ - Canadian small and
medium-sized business (SMBs) are optimistic about their future,
according to eBay Canada's first
SMB Optimism Index. Scored out of 100 from very pessimistic
to very optimistic, Canadian retail SMBs averaged a 74 on the
Index. However, those who export indexed notably higher at 79
points, while non-exporting SMBs are significantly less optimistic
at 72 points.
SMBs who export reported an average of nearly 60 per cent more
in sales than those who don't. They are also more likely than
non-exporters to believe there are new market opportunities for
them (70% versus 36%) and that technologies and innovations will
positively impact their business (56% versus 41%).
"Given the relatively small size of the Canadian market, it
stands to reason that business optimism in our country would be
linked to exporting," says Andrea
Stairs, managing director, eBay Canada. "A critical success factor to scaling
a Canadian business is the ability to tap into international
demand. E-commerce has helped democratize international trade, and
global online marketplaces like eBay are enabling SMBs to reach
buyers beyond their borders and fulfill their potential."
Another contributing factor to SMB optimism is the variety of
sales channels used by a business. Omni-channel businesses indexed
at 77 compared to 72 for single-channel enterprises. Further,
omni-channel SMBs who use digital channels scored higher on the
Index (77) than those who don't (73).
As for impediments to optimism, the top worries reported by
Canadian SMBs include the value of the Canadian dollar for
purchasing business inputs, low margins and tough domestic
competition. And, though more than half of SMBs (56%) agreed that
Canada is a good country in which
to run a business, only 38 per cent believe the Canadian government
makes decisions that help their business.
eBay Canada also surveyed its
own commercial sellers, who indexed two points higher than the
average retail SMB. With 98 per cent of eBay SMBs reporting that
they export and nearly 7 out of 10 (68%) running omni-channel
operations, it's no surprise that they have a healthy outlook for
2017. These findings are exemplified by the winners of eBay
Canada's 12th annual
Entrepreneur of the Year Awards – a program that recognizes
e-commerce excellence in this country.
"This year's winners demonstrate the thriving entrepreneurial
spirit on eBay," says Stairs. "All three are millennials who are
building million-dollar businesses – a testament to the ability of
tech-enabled entrepreneurs to drive success beyond a single channel
or market."
This year's winners are:
Entrepreneur of the Year
Yossef Vidal (eBay ID: watchvendor) was
determined to start his own business when he was moving back to
Canada in 2008, so he convinced
his employer (an online electronics business) to pay him in
inventory for his final months of work. Based out of Montréal,
Québec, he and his wife, Shoshana, started selling cell phones on
eBay, but quickly added watches. Their watch sales took off
instantly – particularly to international buyers – so they expanded
their offerings to include name brand jewellery, sunglasses and
handbags. A year ago, Yossef and Shoshana successfully
reinvigorated their efforts to sell high-end electronics as a
result of further research, specifically on the Canadian market,
and they pride themselves on giving Canadian customers the
opportunity to buy from a domestic seller. To date, the 30-year-old
and his wife have accumulated sales of more than $10 million on eBay.
Omni-Channel Entrepreneur
A resident of Etobicoke, Ontario,
Nadia Shuaib (eBay ID:
budget_electronics) created a cell phone accessories wholesale
business out of her apartment in 2014, primarily selling inventory
to local retailers. Since she began selling on eBay, she has grown
her product portfolio by more than ten times and has opened a 3,500
ft2 warehouse that also functions as a bricks-and-mortar
store. Nadia has mastered her multi-channel operations, using
walk-in customers to keep her abreast of product trends, the eBay
platform to gather customer service feedback, and a custom CRM tool
to effectively service in-store and online buyers simultaneously.
To-date, her online sales have grown more than 1,000 per cent and
the 29-year-old is projecting sales of $1
million in 2017.
Micro-Multinational of the Year
In 2011, Adrien Lavoie (eBay ID: boardshopw) started his
business in the basement of his parents' house selling
skateboard-related merchandise. The quick success he had on eBay
allowed him to build a 2,100 ft2 bricks-and-mortar store
in Gatineau, Québec. Two years
later, at 24 years old, he won eBay's Young-Preneur award. Since
then, he has evolved his business to focus on sneakers, carrying
styles from top brands like Reebok and Adidas that are less readily
available in international markets. Selling globally through eBay
is the key to Adrien's success: 90 per cent of his sales are from
outside of Canada, including the
U.S., France, Australia, Germany and Japan, and he regularly ships items to more
than 45 countries. To-date, Adrien has sold more than $1 million worth of shoes and apparel on
eBay.
Further information about the Entrepreneur of the Year winners
can be found at eBay.ca/eoy.
Additional key findings from the eBay Canada SMB Optimism
Index include:
- More than half (54%) of SMBs surveyed felt optimistic about
2017, with one in five (19%) feeling very optimistic
- Quebec SMBs are overall the most optimistic scoring 79 on the
Index; SMBs from the Atlantic are the least optimistic with a score
of 72
- Two in three (66%) SMBs that have been in business for less
than five years are optimistic about their business prospects for
2017, compared to 47 per cent of SMBs that have been operating for
20+ years
- One in four (28%) SMBs expect to increase their number of sales
channels in 2017 – this number grows to 38 per cent for exporting
SMBs and drops to 22 per cent for non-exporting SMBs
- 16 per cent of SMBs expect to increase their employee headcount
in 2017 – 26 per cent of exporting SMBs expect an increase,
compared to 11 per cent of non-exporting SMBs
Further findings can be found at eBay.ca/SMBOptimismIndex.
MARU Survey Methodology:
The online survey, facilitated by MARU/Vision Critical Research
& Consulting, was conducted between August 3rd and August 30th, 2016. SMB sample
respondents were sourced from The Angus Reid Forum panel, while
eBay Canada SMBs were sourced directly through the company. The
sample consisted of 427 SMBs as well as 117 commercial eBay sellers
from across Canada. The margin of
error for the sample of SMB's is +/- 4.7%. The margin of error for
the sample of eBay sellers is +/- 9.7%. To qualify for the survey,
SMBs had to indicate a minimum revenue of $13,000 CAD annually, and indicate that they
don't have more than 99 employees. eBay sellers had to indicate a
minimum revenue of $13,000 CAD
annually, but no parameters were set for number of employees.
About eBay Inc.
eBay (NASDAQ: EBAY) is the world's most vibrant marketplace for
discovering great value and unique selection. eBay connects
millions of buyers and sellers around the globe, empowering people
and creating opportunity through Connected Commerce. Our vision for
commerce is one that is enabled by people, powered by technology
and open to everyone. eBay is visited by more than 8 million unique
Canadians per month (comScore Media Metrix: August, 2016). For more
information, visit ebay.ca.
SOURCE eBay Canada