According to a recent study carried out by PayPal, an online payment services company, 75% of small retailers are turning their backs on an extra 20% of revenue by ignore the online opportunity.
Furthermore the profit on that extra 20% is generally greater as the attributed costs are much reduced. The report shows that the 25% of UK small businesses that do have e-commerce enabled websites benefit to the tune of £69,540 per year on average. This represents approximately one-fifth of annual sales revenue achieved through the Internet.
While many businesses have taken the first step of developing a company website, 33% reported that they hadn't installed online payment services because they believed their customers would not want to buy via the Internet. Another 17% said they felt the cost is prohibitive.
The cost of setting up an e-commenrce enabled web site can be as little as a few hundred pounds a year. An investment of a few hundred pounds in order to increase revenue by a potential £69,540 shouldn’t need much pondering.
The average amount traders spent on e-commerce sites was found to be £2,000. Traders making this kind of investment were not disappointed and said that they recouped the money many times over.
One quarter of respondents admitted that their web site is a more cost-effective sales channel than their high street shop.
The Business Forum is looking into the possibility of providing guidance on e-commerce. Anyone interested in learning more about how to increase profits online should contact Soozie Campbell on 01273 380040 or at firstname.lastname@example.org.
Read related items on:
Retail, pubs, clubs and restaurants