Articles: Increase in Online Only SMEs
Date Added: 18/02/2013 @ 3:10pm
Recent stats suggest that a growing number of SMEs (Small-Medium sized Enterprises) are settng up with only an online presence, a recent survey carried out by Freelancer.co.uk found.
The 32% rise in businesses trading exclusively only comes a year after the launch of a government scheme that aims on increasing the amount of firms exporting their products and services outside of the UK.
This growth in online exclusivity comes as more and more high profile high street retailers, including HMV, Comet, Jessops and Blockbuster have gone into administration after failing to compete with online rivals.
An ever increasing number of enterprises began trading online in the last 12 months stating that one of the reasons for trading online was because of the costs. 14% of those questioned said that "they were encouraged to start a business because online stores are cheaper" and that not having to rent a shop was a significant saving. Nearly 20% thought that it was both quicker and easier to sell products online.
Although not all start-ups and small businesses trade exclusively online, nearly 40% commented that as much as 50% of their recent sales came via the internet.
Major costs for small businesses trading mostly online include website design & development, as well as e-commerce design and services for delivering their merchandise abroad. Over two fifths stated that their main investment was the cost of setting up their e-commerce website.
"Small businesses have been encouraged to start exporting and their investment and efforts are paying off. Small businesses are investing heavily in e-commerce as they know that is the future," says Matt Barrie, chief executive of Freelancer.com, "Watching previously untouchable high street giants HMV and Comet go into administration is also acting as a spur to small businesses to trade online, which will help them to cut overheads and open up their products to new markets around the world."
If you'd like to find out how much an e-commerce website would help your business, get in contact today.