This National Small Business WeekMerchants are increasingly moving beyond Main Street and into e-commerce.
and with him news Although post-pandemic growth for most small and medium-sized businesses (SMBs) is exceeding analyst expectations, what matters most is how these vital components of the U.S. economy are faring.
It turns out that, in many cases, the answer is to expand into e-commerce and adopt an online presence. After all, online commerce removes geographic barriers, allowing small businesses to reach customers beyond their local area. This expands the potential customer base and increases sales opportunities.
Unlike physical stores with limited opening hours, an online store is open 24/7, giving customers the convenience of shopping whenever they want. This flexibility can lead to higher sales and customer satisfaction.
In a dynamic macroeconomic context, today’s SMEs find themselves operating in a new reality that requires them to not only be receptive when it comes to new innovations, but also proactive in separating the signal from the noise and identifying new opportunities, especially in everyone. The digital landscape.
But today, simply establishing an e-commerce presence is not enough for small businesses to stand out, and “simply” establishing an online presence is not as easy as it seems at first glance – there are a lot of considerations and options to resort to. -Market strategies that small businesses should consider when building an omnichannel model.
Especially if they want to compete with the 800-pound tech giants that dominate the space, or at least not get crushed by them.
Read more: Consumers dissatisfied with the digital presence of small merchants
Providing a fast, easy and reliable online experience
Moving a business online can be as challenging as it is rewarding.
No matter the business, multi-pillar support a successful online strategy, Alex Burginvice president of Authorize.net, he told PYMNTS, noting that any business needs a simple, clean, easy-to-navigate website. The shopping cart should also be simple and lead directly to a host of payment options.
At a high level, Burgin said, “whether it’s a roadside lemonade stand or a complex computer company, all businesses must accept payments. And, in essence, all companies need to think about what their digital presence looks like and how they interact with their customers.”
“Apps and connected devices make [shopping] fluid, safe and efficient experiences. And discreet,” observed Karen Webster of PYMNTS in a characteristic last fall. “It takes three minutes between meetings to place an order on Instacart; it takes 60 minutes or more to drive to and from the store and shop.”
“The PYMNTS Intelligence Study”Main Street Health Survey, Q4 2023: E-Commerce Protects Main Street SMB Bottom Lines in a Cooling Market”, created in collaboration with Enigma, revealed that Shopify and Squarespace are the most popular platforms among Main Street SMBs. Seven out of 10 companies surveyed cite one of them as their most used platform. The combination of versatility, ease of use and the ability to customize the shopping site at affordable prices is the reason for its popularity.
The research also reveals that e-commerce platform preferences vary across industries and sizes. For example, traditional SMEs with high revenues demand more features from e-commerce platforms, while ease of use and low cost are sufficient for the average business.
Read more: Payments innovations help small businesses navigate the maze of high streets
Take advantage of digital growth opportunities
PYMNTS Intelligence Has Found Nearly 8 in 10 Main Street SMBs use online channels, while an additional 16% are interested in implementing them. Additionally, the average SME generates half of its sales through online channels. Leading SME retailers lead the way, generating 54% of their sales through these channels.
And according to PYMNTS Intelligence separately in the report, “Traditional small business growth exceeds GDP for the first time in two years”, Traditional SMEs with increasing revenues are more likely to sell their products online than those companies with decreasing revenues.
Companies with growing revenue are more likely to reach their customers through social media (68%), mobile apps (27%), and websites (60%) than companies with stagnant or declining revenue.
In the digital age, of course, fraud remains a constant concern. Ensuring secure payment processing is essential to building trust with customers and safeguarding sensitive financial information.
By demonstrating a commitment to security and protecting customers from fraudulent activity, e-commerce companies build trust and credibility among their customer base. Customers are more likely to return to a platform where they feel safe and valued, leading to greater loyalty and positive word-of-mouth recommendations.
Beyond fraud prevention, efficient logistics and order fulfillment are critical to delivering a positive customer experience. Small businesses need to establish reliable shipping partnerships, optimize inventory management, and provide transparent tracking and delivery options.
By understanding these considerations and taking advantage of the opportunities that e-commerce provides, small businesses can effectively drive growth and compete in today’s digital landscape.
For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
