This National Small Business Week, merchants are increasingly moving beyond Main Street – and into e-commerce.
And with news that post-pandemic growth for most small and medium-sized businesses (SMBs) is exceeding analysts’ expectations, how these vital components of the American economy are doing so is of primary concern.
It turns out that the answer is, in many cases, to expand into e-commerce and adopt an online presence. After all, online commerce eliminates geographic barriers, allowing small businesses to reach customers outside their local area. This expands the potential customer base and increases sales opportunities.
Unlike physical stores with limited opening hours, an online store operates 24/7, providing customers with the convenience of shopping whenever they want. This flexibility can lead to increased sales and customer satisfaction.
In a dynamic macroeconomic context, today’s small and medium-sized businesses find themselves operating in a new reality that requires them to not only be reactive when it comes to innovations, but also to be proactive in separating the signal from the noise and identifying new opportunities – especially across all sectors. the digital landscape.
But just establishing an ecommerce presence isn’t enough for small businesses to stand out these days, and “just” establishing an online presence isn’t as easy as it first seems — there are a number of considerations and guidelines. -market strategies for small businesses to weigh in on building an omnichannel model.
Especially if they want to compete, or at least not be crushed, by the 800-pound Big Tech giants that dominate the space.
See more information: 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, several pillars support a successful online strategy, Alex Burgin, vice president of Authorize.net, told PYMNTS, emphasizing that any company needs a simple, clean, and easy-to-navigate website. The shopping cart should also be simple, leading directly to a variety of payment options.
At a high level, Burgin said, “whether it’s a roadside lemonade stand or a complex computer company, every company needs to accept payments. And, ultimately, every company needs to think about what its digital presence looks like and how it interacts with its customers.”
“Apps and connected devices make [shopping] seamless, safe and efficient experiences. And discreet,” noted Karen Webster of PYMNTS in an article last fall. “It takes three minutes between meetings to place an order on Instacart – it takes 60 minutes or more to get to and from the store.”
The PYMNTS Intelligence study “Main Street Health Survey Q4 2023: eCommerce Protects Main Street SMBs’ Bottom Line 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 the most used platform. The combination of versatility, ease of use and the ability to customize the shopping site at affordable prices are the reason for its popularity.
The research also reveals that ecommerce platform preferences vary across industries and sizes. For example, high-revenue small and medium businesses require more features from eCommerce 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
Leveraging digital growth opportunities
PYMNTS Intelligence found that nearly 8 in 10 small and medium businesses use online channels, while another 16% are interested in implementing them. Additionally, the average Main Street SMB generates half of its sales through online channels. Main Street small and medium-sized retail businesses lead the way, generating 54% of their sales through these channels.
And according to the separate PYMNTS Intelligence report, “Main Street Small Business Growth Exceeds GDP for First Time in Two Years,” small and medium-sized businesses with growing revenues are more likely to sell their products online than companies with decreasing revenues.
Companies with growing revenues are more likely to reach their customers through social media (68%), mobile apps (27%) and websites (60%) than companies with stagnant or decreasing revenues.
In the digital age, of course, fraud remains a constant concern. Ensuring secure payment processing is essential to building customer trust and protecting sensitive financial information.
By demonstrating a commitment to security and protecting customers from fraudulent activity, ecommerce companies build trust and credibility with their customer base. Customers are more likely to return to a platform where they feel safe and valued, which leads to greater loyalty and positive word-of-mouth recommendations.
In addition to fraud prevention, efficient logistics and order fulfillment are essential to providing 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 offered by e-commerce, small businesses can effectively fuel their growth and compete in today’s digital landscape.
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