Feeds

Small.biz left standing in ecommerce gold rush

There's riches in them thar stores

  • alert
  • submit to reddit

The Power of One Brief: Top reasons to choose HP BladeSystem

Despite the rapid increase of ecommerce the majority of retailers are neglecting to reap online benefits, a survey by Actinic Publishers has shown.

The findings highlight the increased profitability of retail Web stores in the small to medium-sized business sector. However, the results reveal that a disproportionately low number of businesses are adopting online business channels. The net result of this could be supplier shortage and limited consumer choice due to vendors' resistance to ecommerce adoption.

Actinic CEO Chris Barling said: "Surveys over the last year have consistently found that online spending is growing rapidly, but that's only one side of the coin. Just as importantly, our results show that economic profitability is growing too, the low overheads compared to a high street outlet make selling online especially attractive to start-ups and micro-businesses.

The survey shows that the profitability of retail Web stores has increased from 53 per cent in 2003 to 72 per cent this year. In contrast, only three per cent of retailers have an online sales facility. Among companies that have yet to adopt ecommerce, fewer blamed lack of interest from customers while more blamed lack of resources.

Barling added: "What I find disappointing is that the vast majority of retail businesses are not taking advantage of this golden opportunity to increase their sales, profits and customer base."

What is encouraging, however, is that ecommerce is most popular among entrepreneurs and small businesses with 40 per cent of ecommerce businesses starting up online exclusively, and 75 per cent of sites run by companies with 10 employees or less.

Copyright © 2004, Startups.co.uk logo

Related stories

Etailers face tough times
Security fears holding back online travel market
Brits fear online shopping

Reducing security risks from open source software

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.