Alibaba’s Big Contributions to the U.S. Economy
Alibaba’s online marketplace provides American businesses of all sizes with access to over one billion consumers in China. As a result, U.S. brands sold $66B in products to Chinese consumers in 2022, a 47.4% increase since 2019.
These sales not only benefit the companies doing business with Alibaba but have a profound impact on the U.S. economy. According to research firm NDP Analytics, which recently released its 3rd annual study, Digital Commerce: Alibaba’s Contributions to the U.S. Economy by State and Industry, sales by American businesses to Chinese consumers on Alibaba added $52.9B to the U.S. GDP in 2022.
NDP’s study also found that these sales supported roughly 403,000 American jobs (a 57% increase from 2020) and over $36B in U.S. wages (a 73% increase since 2020). In fact, U.S. brands such as Timeless Skin Care from Texas and Instinct Pet Foods from Missouri are hiring employees and building new factories to keep up with the growing demand from China.
For the first time, NDP Analytics went a step further to measure the impact Alibaba has on U.S. small businesses. The study reports that nearly 14% of U.S. brand sales on Alibaba were generated by small businesses, equating to $6.7B in goods sold, including from companies like DS Laboratories in Florida and Phyto-C in New Jersey.
“Our company experienced a 600% increase in revenue since selling on Alibaba,” said Phyto-C CEO Dr. Eddie Omar. “As a small business, none of this would have been possible without Alibaba.”