picture of man shopping online

Ecommerce on the rise among small businesses

SMEs move online as research shows it is profitable

Written by Dave Friedlos

The number of small and medium sized businesses (SMEs) offering full ecommerce facilities has grown considerably in recent years, according to new research.

Although the survey found that just 11 per cent of SMEs boast a full ecommerce presence, this was almost double the figure reported in recent years.

Additionally, 90 per cent of those with ecommerce sites reported it was profitable and 40 per cent said the cost of setting it up was less than expected.

Bruce Townsend, marketing manager for survey author Actinic, says high levels of profitability and low cost of deployment bucks the trend of many IT projects.

‘It is surprising that just 10 per cent still have an ecommerce site, but that is up more than 30 per cent on last year,’ he said. ‘There will always be some products that are not suitable for online sales and some businesses prefer face to face service.’

Townsend says many of the reasons for not adopting ecommerce relate to perception rather than reality, with concerns about the security of purchasing online, the cost of deploying a web site and the time involved.

‘While there were valid concerns about security and cost in the past, technology has overcome much of this,’ he said.

Federation of Small Businesses national IT chairman Peter Scargill says the take-up of ecommerce represents a significant rise.

‘A few years ago, only a small number of SMEs had broadband and this was a major reason for the slow adoption of ecommerce,’ he said. ‘But we are getting to a critical point where the ease of deploying online will lead to increased take-up.

‘The fact that 90 per cent reported that their web sites were profitable and a worthwhile venture will further drive take-up.’

What do you think? Email us at feedback@computing.co.uk

Further reading

Small business IT spending on the rise

Small firms slow to take trade online

SMEs must show peers the benefits

reader comments

related articles

 

Screening for quality

LCD screen types and sizes keep proliferating, so where are the sweet spots for the channel? 23 Oct 2008

Review 2007: Internet and e-commerce

A look back at the top stories about the web and business from Computing 19 Dec 2007

Leave small firms alone, FPB warns Darling

FPB stresses that small firms are already cracking under the strain of government regulations 11 Mar 2008

related whitepapers

today's top stories

Technology and privacy

Watch part one of a two-part Computing roundtable debate on the importance of putting data privacy issues at the heart of your IT plans 01 Dec 2008

Got the Knowledge?

Last week the civil service published a new strategy to help government seize the opportunities and meet the challenges of managing knowledge... 01 Dec 2008

Q&A - ntl:Telewest Business managing director Stephen Beynon

The cable provider's chief talks about the future of next-generation broadband access in the UK 28 Nov 2008

Computing podcast - Standard Life's offshoring plans; and the prospects for government IT

The insurance giant outlines its new outsourcing strategy; and we ask if the government's economic bailout will affect its IT plans 28 Nov 2008

India will remain open for business - but that's not the real story

One of the duties I have to fulfil as a director of the National Outsourcing Association is to talk to the media... 28 Nov 2008

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Advertisement

Jobs

Related jobs

Job of the week

Job alerts

Sign up here

Find your next job

IT Salary Checker

Check salary here

Advertisement

White papers

Search white papers

Top categories

VPN, Extranet and Intranet Solutions

WAN/ LAN Solutions

Network Security

Interoperability-Connectivity

Grid/ Utility Computing

Latest poll

Will the terrorist attacks in Mumbai affect your offshoring plans?

Will the terrorist attacks in Mumbai affect your offshoring plans?

Is India becoming a risky destination?

Previous poll results

Latest audio and video articles

Padlocked CDVideo

Technology and privacy

Watch part one of a two-part Computing roundtable debate on the importance of putting data privacy issues at the heart of your IT plans 01 Dec 2008

Podcast imageAudio

Computing podcast - Standard Life's offshoring plans; and the prospects for government IT

The insurance giant outlines its new outsourcing strategy; and we ask if the government's economic bailout will affect its IT plans 28 Nov 2008

Latest in-depth articles

ntl:Telewest's Stephen BeynonAnalysis

Q&A - ntl:Telewest Business managing director Stephen Beynon

The cable provider's chief talks about the future of next-generation broadband access in the UK 28 Nov 2008

cowboyFeatures

Guns for hire

David Neal explores the world of interim CIOs and discovers why more firms are turning to them to spur on IT-led change 27 Nov 2008

Advertisement

Primary Navigation