California is home to over 4 million small businesses – more than any other state in the country. With a booming tech sector, the Golden State’s e-commerce sellers reach customers through a wide variety of sales channels that deliver value and efficiency. As online retailers expand in our state, we need lawmakers in Washington who not only understand their challenges but also advocate for policies that allow them to thrive.
Adam Schiff, our newly elected Senator, is well-positioned to represent the interests of California’s online sellers. His seat on the Senate Committee on Small Business and Entrepreneurship empowers him to craft legislation that can shape retailers’ growth. Sponsoring the SBA Disaster Transparency Act, which requires the Small Business Administration (SBA) to make necessary reforms to its loan distribution program, is an encouraging sign of Senator Schiff’s interest in our small businesses. This is a step in the right direction, but there’s more to do on behalf of our country’s job creators.
Technology reshaped the retail landscape, and e-commerce is at the forefront of this transformation. Small businesses are no longer confined to geographical limits or local foot traffic. Entrepreneurs anywhere from San Diego to Redding can access global markets and reach customers outside their local communities. The result is a more level playing field where businesses offering everything from innovative products to everyday consumer staples can compete for customer loyalty.
The economic activity created by this digital revolution is staggering. Online retail sales exceeded $1 trillion last year – an increase of more than 8 percent from 2023. A common misconception is that this growth only benefits large retail companies. The reality is it also provides a livelihood to countless small business owners who sell their products through online marketplaces.
While this digital economy offers opportunities, the regulatory landscape often doesn’t take small businesses interests into account. Unfortunately, policymakers this year have proposed ideas that will exacerbate this problem. That includes new compliance burdens, trade barriers that disrupt supply chains, and additional taxes, each of which are increasingly difficult to manage in the current economic environment. At a time of economic uncertainty, small businesses cannot stay profitable if Washington adds more unnecessary costs.
Representing the largest state in the country and $4.1 trillion economy, Senator Schiff has the platform to make a difference for small businesses everywhere. The next area where he can advocate for small online retailers is trade policy. New tariffs will drive up costs for those who rely on overseas suppliers for materials and products. These expenses will force retailers to pass on the extra costs to consumers, which will lead to higher prices and lower sales. For small businesses, dollars not spent on tariffs could instead be invested in creating jobs and expanding operations.
When online retailers succeed, our small business community thrives. And when small businesses thrive, our economy as a whole prospers. Senator Schiff now has a chance to be a true champion for California’s vibrant small businesses. I hope he can use his first months in office to advance policies that support the growth of online retailers and encourage them to continue driving our economy forward.
