Loading ...Sensis 2009 e-Business Report has found that most Australian small businesses are getting a quick pay-back on their ecommerce investment.
So its no surprise that they’re focussing more and more on ecommerce and online technology.
Released late last month, the 14th edition of the Sensis e-Business Report details, as usual, results from interviews with more than 1800 Australian small businesses about their IT and online spending.
Report author, Christena Singh, said that this year Australian small businesses had cut their spending on computer hardware.
“At the same time, businesses have begun focussing on online technology, becoming more creative with the way in which they market their products and services online, and more adventurous with the technology they buy.”
She said this year’s survey found 33% of small businesses doing email marketing, and 24% doing some form of digital marketing such as advertising on a portal or a search engine.
19% also said they are now using online auction sites.
Even so, the report also found that only just over half (54%) of small and medium sized businesses (SME’s) have their own web-site.
Accommodation, café and restaurant sector businesses were the most likely to have a web-site (90%) whilst building and construction sector small businesses were the least likely (20%).
Those with web-sites generally said that their online presence had increased the effectiveness of their business.
Specifically, the SMEs interviewed said that a website increased their effectiveness, by:
• Informing people about the business (18 per cent);
• Increased awareness (11 per cent);
• Exposure to a broader market (10 per cent);
• Easier for people to access (10 per cent);
• More enquiries (nine per cent);
• Extra sales (eight per cent).
Other survey results also backed up the findings of increased business efficiency from online activity. For example, this year, 74% of SME’s said they now buy online, which is up 7% from last year. Moreover they don’t just order their goods and services online, they also pay for them online. Indeed exactly the same percentage – 74% – said they now pay for goods and services online, up 3% from last year.
Even more noteworthy, is the number of businesses who do most of their business online. One in five Australian small businesses now place more than 50% of their orders online, said Ms Singh.
Australian SME’s are still, however, less likely to be selling online than they are buying. According to the report only 56% are taking orders online, up just 2% from last year. (A slightly higher percentage said they take payments online, some 67%, which is up 4% on 2008).
Products bought online
Airline tickets are the product that small businesses most commonly reported buying online (48%), with the last year showing a big jump. In fact, the number of small businesses buying airline tickets online was up 11% on last year.
• Airline tickets (48%)
• Software (47%)
• Stock and merchandise (42%)
• Office supplies and stationery (40%)
• Equipment (39%)
Against that backdrop its hardly surprising that a solid majority of SME’s (67%) told Sensis their investment in ecommerce had already been recovered. “Ïmproved return on investment could be one reason to explain the increase in on-line activity and e-commerce” said Ms Singh.
She also said the Report revealed businesses are less concerned about security and other aspects of doing business online had also reduced. “Reduced concerns about e-commerce could be another reason for the increased activity we have seen during the year”she said
For more information and to download a copy of the report go to
http://www.about.sensis.com.au/media/pdf/SBA-Archive/sba/tae/2009_Sensis_e-Business_Report.pdf
