For small businesses venturing into e-commerce, the potential for success is huge. In the US there are a staggering 263 million shoppers online who could potentially purchase goods and services from your business.
E-commerce has revolutionized the retail world and created many powerful opportunities for small businesses. Selling your products online can help attract more customers, reduce operating costs, increase revenue potential, and even open up new markets.
Let’s explore some of the key small business eCommerce statistics that demonstrate just how important eCommerce is for small business owners. You’ll also find out what specific benefits come with selling through an online platform.
Small Business Ecommerce Statistics
- Despite the fact that the eCommerce industry is growing by 23% year on year, 46% of American small businesses do not have a website.
- Businesses have lost $756 billion as a result of poor eCommerce personalization.
- 46.5% of small and medium-sized businesses say that free shipping helps them make more money.
- In a survey done by Inmar, 78% of retail businesses said they planned to spend more on ecommerce in 2021.
- Out of the 7.9 billion people in the world, 2.14 billion shop online.
- In the United States, there are about 2.5 million online businesses in 2022.
- In 2022, there are 263 million online shoppers in the United States.
- In the United States, about 26% of small businesses have an online store.
Benefits Of eCommerce For Small Business
1.Reach New Customers
According to Cloudtalk, the benefits of eCommerce for small businesses can be vast, particularly when it comes to reaching new customers. With 87% of people beginning their shopping journey online, eCommerce gives businesses the opportunity to tap into potential new markets beyond local physical locations.
By setting up a secure and reliable website with a professional hosting solution and penetration testing services, small businesses are able to break geographical boundaries and can now easily reach anyone in the world.
2. 24/7 selling opportunities
For small business owners, the advantages of ecommerce can be profound. With ecommerce you have the opportunity to sell whatever products and services you offer around the clock, since you don’t need to be available every time someone makes a purchase.
Entrepreneur Press explains this concept in “The Power of Passive Income: Make Your Money Work for You,” noting that an ecommerce business is only ever-limited by internet access.
For small businesses tapping into this market and taking advantage of these opportunities is an immense benefit, allowing them to continue generating revenue even when the storefront might otherwise be closed.
3.Online Reputation Building
Shiprocket stated that Small businesses can greatly benefit from establishing an online presence. Online reputation building is one of the advantages of using e-commerce for businesses. When customers appreciate a small business’s products and services, it can be tough to capitalize on those appreciations.
But through ecommerce, customers can share their reviews and appreciation on the business’s social media profiles, making them visible to all.
This helps to build a reputation and attract new customers as well. In order to make use of this aspect of ecommerce, businesses need to create accounts on social media platforms such as Facebook, Instagram, Twitter and so on.
Why Small Businesses Need a Website
BigCommerce reports that the eCommerce industry is rapidly growing at a rate of 23% year-over-year. Surprisingly, however, BigCommerce also says that 46% of the small businesses here in America still lack a website.
As someone who has run a small business, I know that having an easily accessible website can be incredibly beneficial and make your company much more successful.
In this day and age, word-of-mouth advertising and simple social media accounts aren’t enough, according to Marketingpros. You need an online presence that potential customers can find right away. Investing in a website is a must if you’re a small business trying to stay competitive.
What is the biggest threat to ecommerce?
Educba claims that the growing incidence of data misuse and security breaches is the biggest threat to e-commerce. Despite increased security measures from credit/debit card companies and other payment processors, criminals have been able to find a way to access confidential information and use it for their benefit.
This has led to a rise in fraudulent purchases, identity theft, and other cybercrimes that can put buyers at risk and cause significant financial losses for sellers.
In some cases, customers may be hesitant to purchase online out of fear of their personal information being compromised, leading to decreased engagement and revenue opportunities for ecommerce businesses.
Is eCommerce good for small businesses?
Bigcommerce says that eCommerce is a great way for small businesses to grow and get the most out of their money. It allows them to have an online presence that is far-reaching and cost-effective.
Moreover, it offers advantages in terms of connecting directly with customers, customizing customer experiences, and managing sales operations efficiently, as it can be automated.
Ultimately, eCommerce provides an affordable and effective way for small business owners to stay ahead in the market while increasing online sales potential.