Small companies see ecommerce technology and platforms as a chief means to drive future growth – and chart a firmer path through uncertain economic times.
Around 41% of US small businesses with websites are increasing or significantly increasing their 2023 budget for e-commerce platforms, while only 26 % are decreasing their budgets in the face of economic uncertainty, says a new report from research firm Thrive Analytics. Small firms are spending more on digital technology to improve the customer experience and boost sales. The data and and analysis is based on metrics pooled for an online panel of about 9,5000 small companies, says Thrive Analytics.
Nearly half of the small businesses with websites have e-commerce functionality, representing approximately 10 million small businesses in the US. Only 15 % of small firms are are planning to drop services they obtained during the pandemic, says Thrive Analytics.
But small companies also face e-commerce challenges such as struggling to keep up with new technology, payment processing issues, and difficulties in managing content and utilizing multiple vendors for services.
To address these challenges, small businesses plan to prioritize investments to upgrade basic functionality, such as payment improvements, monitoring performance, and expanding delivery options,” says Thrive Analytics.
“Small businesses are recognizing the importance of e-commerce technology to stay ahead and capture a larger market share,” says Thrive Analytics managing partner Jason Peaslee.