At Alibaba.com, our mission is to be an ally to small and medium-sized businesses (SMBs) and help them succeed. To better serve these businesses, we're issuing the Alibaba.com B2B Pulse, a monthly update that serves two primary purposes: First, we will aggregate the biggest macro developments relevant to US SMBs and second, we will share proprietary insights into US B2B demand that we observe on the Alibaba.com global B2B marketplace.
We hope this helps our customers, media, and wider community of people in the B2B world have a richer understanding of the landscape. We also hope to have some fun with this as B2B sales often act as a leading indicator for what's to come not only in retail trends, but even changes in our everyday lives.
Top 5 things affecting US B2B SMBS
1. Eight in ten small businesses expect a recession to occur this year
SMBs are less confident about the economy as inflation, labor shortages, and supply chain disruptions continue. A majority (57%) of small business owners expect economic conditions to worsen in the next year. This is up from 42% in April, and equal to the lowest record in April 2020. Additionally, "eight in ten small business owners expect a recession to occur this year," according to the CNBC - SurveyMonkey Small Business Confidence Index.
2. Fewer SMBs are hiring in May than in April across all geographic locations
The CBIZ Small Business Employment Index (SBEI), which tracks hiring trends among thousands of companies in the US with 300 or fewer employees, saw a significant decrease. After two months of hiring gains, the April report decreased by 1.91%. Every region across the country had hiring declines, foreshadowing challenges ahead for SMBs.
3. 91% of SMBs face challenges procuring inventory because of larger competitors
The supply chain crisis has disproportionately affected SMBs compared to their larger counterparts. Insights from Software Advice's Small and Midsize Business Retail Supply Chain Survey show "91% of SMB retailers feel that larger companies have an advantage over them in their ability to procure inventory." This is because 42% are unable to meet minimum order quantities and 41% cannot pay the premium prices. As a result, "46% of retail SMBs have had at least one vendor drop them for reasons specifically related to being a small business." In anticipation of supply chain disruptions, companies from retailers to manufacturers plan to stock up on inventory this summer.
4. 90% of SMBs find it difficult to recruit qualified candidates
The Goldman Sachs 10,000 Small Business Voices Survey showed that 90% of respondents that are hiring are "finding it difficult to recruit qualified candidates for open positions." But minority business owners are experiencing elevated staffing problems with 81% unable to fill job openings, 23% higher than what it was in February.
5. 91% of SMBs anticipate making marketing and sales investments
Small business owners are increasing sales efforts in 2022 in response to concerns about inflation and economic uncertainty. The Truist 2022 Annual Small Business Owners Survey Results show that 91% are prioritizing marketing and sales investments in the hopes of reaching new customers. The top channels they plan to invest in include social and search engine marketing (43%), online presence/ ecommerce/website (41%), and email, text, and campaign marketing (40%).
Top investments in customer outreach and customer service
Sheriff Muse-AriyohDigital marketing is extremely vital now during this pandemic. It's an effective way to reach our target customers across the various platforms and increase brand awareness. Sheriff Muse-Ariyoh, Founder, Unique Threads
B2B trade trends on Alibaba.com
As one of the world's largest B2B ecommerce marketplaces, activity on Alibaba.com can offer unique insights into what's happening in B2B trade, what we might see in future B2C trends, and even the broader economy.
Key takeaways:
B2B demand in a number of categories grew significantly on Alibaba.com between April and May 2022 as businesses prepare for the summer.
Some of these categories include:
In addition, other fast-growing categories include:
Other fast-growing categories
What's next?
This summer, continue growing your business without the costs and hassle of travel. From June 13-26, Alibaba.com is hosting its annual Summer Online Trade Show featuring new product launches within fast growing categories, 10,000 digital booths where you can communicate with suppliers, and online immersive factory and networking experiences. Qualified business buyers are also eligible for samples starting at just US $1. Global suppliers will offer value-added services in select categories including:
