Malaysian SMEs can now capture a bigger share of the American consumer market following a revision in the de minimis threshold, with items valued at US$800 and below being exempted from import duties.
The de minimis threshold is the amount at which US import duties apply. With the limit being increased from US$200 to US$800 Malaysian retail exporters on eBay will be able to sell higher priced items into the US with much lower barriers such as additional duty charges, hold-ups in customs, and paperwork.
Coupled with the ease of access and reach of eBay, retail exporters can look forward to a shorter delivery period and hassle free document processing, with the amendment allowing them to bypass the US import customs formalities when the price falls under threshold value. American consumers, on the other hand, will be encouraged to buy more due to the increased affordability, leading to better export sales opportunities for retail exporters.
eBay previously signed a joint memorandum with MATRADE on cross border e-commerce, developed to drive export businesses via the online marketplace. The partnership sees eBay and MATRADE providing sponsorship to small medium businesses in Malaysia to build retail export businesses online, enabling them to market their products to a global market. With a commitment to build and elevate retail export businesses and SMEs in Malaysia, eBay offers SMEs with access to an eBay Premium Store for a discounted subscription price of RM1,500.00 for the subscription period of one (1) year.
Key Malaysia retail export trends:
- Malaysian retail exporters on eBay sell to 34 countries on average, with the 5 top leading destinations being the United States, Australia, the United Kingdom, Canada and Russia.
- The top three categories for Malaysian retail exporters on eBay are ‘Auto-parts’, ‘Cell Phones & Accessories’ and ‘Clothes, Shoes & Accessories’.
- The retail export opportunity on eBay is far more accessible to Malaysian SMEs than traditional export industries.
- 34% of Malaysian retail exporters in 2014 were considered newcomers, achieving US$10,000.00 in sales to global customers for the first time that year.
- 99% of all Malaysian eBay sellers with sales in excess of US$10,000.00 are exporters, compared with just 55% of traditional Malaysian firms.
- Malaysian retail exporters are spread across the country with Selangor having the highest concentration of sellers, followed by Penang, Johor and Perak.