"E-commerce is completely mainstream now...That is not only important because of the economic consequences it suggests, but also because it represents such a vote of confidence in the online world." Lee Rainie, director of the Pew Internet Project. A lot of companies who recognize the importance of having a website, are still unwilling to take the next step and enable their site for online transactions. Many small businesses with websites give similar reasons for not engaging in ecommerce (see Figure 9) as other small businesses give for not having websites at all.  Source: StatsCan. Reasons why small business owners with websites aren't doing business online include the belief that their goods and services are inappropriate, and concerns about security and cost. Consumers, however, are turning to the Internet in increasing numbers both to research new products and to purchase them. Consumers appreciate the convenience of being able to shop at their convenience (often outside of traditional business hours), and business owners appreciate the increased sales, both on their website if they are set up for e-commerce and at their physical store if they are not, and the decreased cost of overhead. Expect to find the information online - 63% of all Americans expect a business to have a website that gives them information about a product they are considering buying. More likely to buy - 47% of Internet users say that if a store provides product information online, even if it doesn't sell directly from its website, they would be more likely to go to the physical store to buy the product. Gain business - 35% of small businesses with websites gain 10% to 99% of sales directly or indirectly from their websites. Electronic catalogs make it easy - 87% of e-retailers who post an electronic version of their paper catalog on their website find it brings value to their relationships with customers, especially customers who are new to shopping online (the E-Tailing Group Inc.).

Online sales are increasing - Although still a small percentage of overall retail sales in the United States, the relative amount of business being done online has been steadily growing over the last few years (see Figure 10). Online retail sales in 2003 exceeded US$56 billion.   Source: eMarketer B2C Commerce Online retail sales as a % of total retail sales has been steadily increasing since 2000.   Showing profits - E-commerce merchants made a profit industry-wide in 2003 after only breaking even in 2002 (NRF). Online purchases doubled - The number of Americans who make purchases on a typical day online doubled (from 3 million to 6 million) from 2000 to 2002. "Internet shopping will become mass market in 2004, as millions of consumers go online to research and buy every kind of product and service," predict the United Kingdom's Interactive Media in Retail Group (IMRG). Customers expect service - Despite appreciating the convenience, online consumers expect the same level of customer service and competitive prices that they get from traditional retailers (see Figure 11). Source: Frank Lynn and Associates. Price, return policy, and reputation of retailer are important no matter where customers shop; the online retailer must also take into account the quality of his shopping cart and shipping rates.

Online auctions are an overlooked opportunity Online auctions are another online shopping opportunity that has grown dramatically in popularity. People looking for information and shopping opportunities online are also looking to online auctions such as eBay, Yahoo, and Amazon for hard to find merchandise and deals. Not everyone knows, however, that small and large businesses are as likely as individuals to put their merchandise up for sale on auction sites. Some new online website builders such as www.citymax.com even allow small businesses to seamlessly integrate their business websites with auction sites like eBay, exposing their business to an even broader audience. One if five have tried online auctions - 22% of Americans online had participated in an online auction as of December 2002. Daily activity - 4 million Americans claim to participate in online auctions on any typical day. Make a living - More than 430,000 small businesses and individuals make a living selling on eBay (ACNielsen). Ready to take your business online? Find out the best way for you to get a professional looking website for a reasonable price with all the features necessary to draw customers, get leads, and make sales, by checking out our reviews of some of the top online web builders and web designers available. Previous page       Next page

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