Friday, April 26, 2024

International Tax Laws On E-Commerce May Change Global Trade

©iStock/Galeanu Mihai
International tax laws on e-commerce may change the industry and global trade — perhaps not for the better, resulting in higher consumer prices.

E-commerce has enjoyed such a meteoric rise over the past decade that ordering pretty much anything online and receiving it within a few days is now routine for consumers all over the world.

Retail e-commerce sales rose to $6.3 trillion in 2023, from $1.8 trillion in 2016, and are expected to grow to $8.1 trillion by 2026, with 4.5 billion users worldwide — or roughly half the population of the planet, according to data tracking site Statista. What’s more, by 2026, e-commerce is expected to make up 24% of all retail sales, up from 18.8% in 2021.

The economics of global e-commerce may soon be changing, however, possibly making goods more expensive and forcing small business owners to pay much closer attention to international trade laws.

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