About FedEx

FedEx Blog

FedEx Blog

E-commerce – the 3rd Major Evolution in Global Economy?

November 13, 2012

ecommerce_carter.jpg blog

I recently spoke on a panel about how the internet and e-commerce are transforming global business.  My message was that you could make the argument that e-commerce could be considered the 3rd major evolution in the global economy since the industrial revolution. The first was the dramatic improvements in telecoms and transportation, which virtually eliminated time and distance as trade barriers. These improvements lead to the second modern evolution – the global supply chain and globally disbursed, just-in-time manufacturing models that allow countries, businesses and individuals to participate in the global economy as never before.

E-commerce can be seen as the third stage, where manufacturers and merchants connect directly with customers around the world who are actively seeking out their products. The power of search engines to find specific items for sale give consumers tools they have never had before and it gives merchants access to customers they have never had before.  In fact, FedEx’s biggest day in history on Monday, December 10th, will be driven by e-commerce.

The internet is transforming the way business is done and is opening up enormous opportunities for businesses, especially small businesses, to participate in the global economy. FedEx has been saying this for years.

A new report by eBay demonstrates that –94% of the smallest 10% of commercial sellers on eBay engage in exporting. That’s a phenomenal statistic because it is so different from the Commerce Department’s overall statistic that only 1% of US companies export. Clearly, companies that adopt the internet as a part of their business model are doing far better at exporting than those that don’t

At FedEx we call this the ACCESS effect – and it’s a hugely powerful force. We see the great potential that exists for small businesses to export and are working to improve the customer experience – to make the experience of cross border e-commerce easier, more predictable and more transparent.

For example, the monetary threshold at which a person or a company has to pay a tariff to import an item, often referred to as the customs de minimis level, is sometimes illogically low. Studies have shown that some countries’ de minimis levels are so low that the administrative costs borne by customs and private sector to collect the duties outweigh the actual amount of duties collected – so its economically inefficient. Raising the de minimis also allows customs to focus its scarce resources on higher value, higher risk shipments, which improves efficiency. By eliminating the duty on low value goods e-commerce becomes cheaper, faster and more predictable, which means more people will take advantage of it. FedEx works on issues like this within international trade agreements to make it easier for small and medium size businesses to join the global market.


Ralph Carter

Managing Director, Legal, Trade & International Affairs, FedEx Express

As Managing Director of Legal, Trade & International Affairs, Ralph Carter is responsible for FedEx policies on global trade and trade facilitation. Carter’s team advocates for simpler, more open trade rules that reduce barriers and help FedEx customers expand their international business. Carter is a frequent speaker and contributor to international trade events and initiatives including at APEC, the WTO, World Bank, World Economic Forum and the Business 20 (“B20”). Carter’s work has helped FedEx become a respected global leader in international trade policy. Before establishing the FedEx Legal, Trade & International Affairs office in Washington, DC, Carter was Managing Director in the legal department of the Europe, Middle East and Africa FedEx headquarters in Brussels, Belgium.

Before joining FedEx, Carter worked at the United States Department of State, serving as the Special Assistant to the United States Ambassador to the European Union. He is a former member of the State Department’s Advisory Committee on International Economic Policy and was a cleared advisor and staff liaison for the President’s Advisory Committee on Trade Policy & Negotiations (ACTPN).

View all Ralph Carter’s blog posts

Comments

    JANET ROBERTS says:

    THIS IS SO TRUE!! THE WORLD IS CHANGING FAST. YOU HAVE TO KEEP UP WITH THE LATEST TECHNOLOGY TO BE COMPETITIVE IN TODAY’S MARKET.

    MayLyn says:

    I just want to say a big thank you to FedEx and ebay for making it possible for me to print out my shipping lables in my ebay, since I sell on ebay as an I Sold It seller every day! It’s a life saver for me and I can’t wait to use this new feature! I enjoyed reading this! Thank you!

Post a Comment

You may also like:

October 22, 2015

Santa Needs Help: FedEx is Hiring!

More like this in blog

More
March 30, 2015

Perspectives on a Connected World

More like this in blog

More