A nationwide survey of small businesses with Websites found that an online presence adds to credibility, marketing and sales, with 78% of companies experiencing the benefits. The results came from the 2003 Holiday E-commerce Survey conducted by Interland, a provider of Web hosting and online services for small and medium-sized companies.
"Interland's latest research reinforces the growing importance of Websites to small businesses," says Joel Kocher, chairman and CEO of Interland. "As more and more consumers connect using the Web, it's vital that small businesses gain an effective online presence. This study shows that small and medium-sized businesses already on the Internet are finding it to be a true business tool, with 56% of those surveyed being able to attribute some portion of their annual sales to their online presence."
The survey involved 260 participants from companies ranging in size from about $250,000 to $5 million. The online, invitation-only survey was conducted in September and resulted in 51% agreeing that the Website primarily provides credibility, 33% saying it was a marketing tool and 28% saying the Website helps achieve sales goals. About 21% said the site was used as a building block for developing products and 19% said it lowered costs.
Nearly half of the group (46 percent) expected 2003 positive results from holiday sales conducted online.
Of those expecting to see online holiday sales:
- 22% report that their online holiday sales will account for more than 50% of their annual 2003 sales
- 11% say online holiday sales will account for 26 to 50% of total 2003 sales
- 17% say online holiday sales will account for 11 to 25% of annual sales
- 50% say online sales will account for up to 10% of annual sales.
Email is used on a regular basis to correspond with customers by 68% of participating businesses, 37% update the Website more than once a month and 38% said the existence of a Website lends credibility when considering other companies for business deals.
When queried on their current and future use of e-commerce,
- 38% of respondents said Website visitors could purchase products or services from their Websites through either online payment transactions or via form mail or email requests
- More than a quarter (26 percent) of those who don't currently sell products online plan to add e-commerce capabilities to their site within the next two years. Five percent plan to add e-commerce to their Websites in time for the 2003 holiday shopping season
- Of those that do sell products or services online today, 45% sell from one to five products online and 40% sell 21 or more products.
"Today convenience is vital to time-strapped consumers, so it is essential for small businesses to have a true multi-channel marketing mix that combines online sales with traditional direct mail, catalogs and brick and mortar sales," says Kim Gordon, president of National Marketing Federation, Inc. "The good news for small business owners is that multi-channel shoppers actually spend more than those who shop through a single channel alone."
Click to view the results of the Survey (.pdf)
