E-Commerce and Global Trade
How digital commerce is reshaping international trade, enabling small businesses to go global, and creating new trade policy challenges.
The Scale of Digital Commerce
Global e-commerce sales reached roughly $6.3 trillion in 2023, representing about 20% of total retail sales. China leads with over 50% of global e-commerce, driven by platforms like Alibaba, JD.com, and the explosive growth of Pinduoduo's international arm, Temu. Amazon dominates the US and European markets. Cross-border e-commerce -- goods sold directly from one country to consumers in another -- reached roughly $800 billion.
E-commerce has lowered barriers for small businesses. A craftsperson in Nigeria can sell on Etsy to customers in Germany. A manufacturer in Shenzhen can reach American consumers through Amazon without a physical presence. But the benefits are unevenly distributed: platform companies capture most of the value through fees, advertising, and data, while individual sellers compete in a race to the bottom on price.