Ecommerce shake-up 'could generate £7bn in exports'

Ministers are being urged to implement a new ecommerce blueprint which it is claimed will supercharge UK small business exports through digital trade.

The analysis, written on behalf of the Ecommerce Trade Commission by the Social Market Foundation (SMF) shows that targeted reforms and support could help 50% more small businesses export goods around the world.

It estimates this could generate £7bn more in overseas sales over a decade.

Independent analysis for the Department for Business & Trade (DBT) shows that targeted export support helped nearly 3,000 small businesses start exporting within two years, generating up to £129m in new revenues.

The SMF estimates that if DBT increased the number of small businesses it supports by 50%, an extra £7bn in export revenues could be unlocked over the next decade. 1

Timed to launch alongside Ecommerce Export Week, the new report sets out ten targeted recommendations for how the Government’s export support could be improved.

Commission members span platforms (Alibaba, Amazon, eBay, Google, and Shopify), business bodies (the CIoE&IT, FSB, the ICAEW, and the AICES), and the Department for Business & Trade, giving the blueprint political and commercial clout, the commission claims.

What makes this report urgent is that economic growth is at the top of the national agenda. At a moment, when UK firms are seeking international opportunities and new markets, the digital trade route is open, but too many entrepreneurs still face regulatory hurdles, platform complexity, and a lack of practical support.

The Commission’s recommendations offer a ready-made action plan to reduce friction and widen access. Over the past year, the Commission, in partnership with the Department for Business & Trade, has consulted widely, holding working group sessions and roundtables, and taking evidence from hundreds of businesses.

The result is a focused set of reforms aimed at boosting the UK’s performance in global e-commerce, including:

Overhaul export finance with small business-focused products
Expand the overseas network of trade advisors and digital trade advisers in the UK
Commission an independent review of export support services
Streamline VAT, tariff, and regulatory compliance for those using e-commerce to export.
Create bilateral customs-friction mitigation plans
Make trade-data interoperable and modernise de minimis thresholds where partners reciprocate
Form a public-private taskforce to tackle online counterfeiting
Tighten VAT enforcement via deemed reseller expansion and better data sharing
Cut costs in payments and foreign exchange for exporters
Launch an independent review of logistics support for online exporters

Chartered Institute of Export & International Trade director general Marco Forgione said: “This report captures the voice of real businesses up and down the country. The ambition is there, but friction still clips the wings of too many firms.

“That’s why the Commission focused on practical fixes: logistics, customs, finance, fraud protection, payments – areas where smart policy can remove barriers fast.

“Digital trade is a high-growth route for the UK economy. If we give firms the tools they need, they will do the rest. That’s what this blueprint offers: a credible roadmap to help businesses scale across borders.

“All the evidence shows that businesses which trade internationally are more resilient, more sustainable, employ more people, are more innovative, and are more profitable.”