News: SMB Going Online Tripled Between Pre-pandemic and 2021Sandeep Babu
The coronavirus pandemic forced businesses to reinvent themselves to survive and thrive in difficult times. So, there is no surprise that more and more businesses went online during the pandemic. According to Recovery Insights: Small Business Reset report prepared by Mastercard Economics Institute, the number of SMB offering online products/services tripled between the pre-pandemic era and 2021.
If you haven’t started the digital transformation of your business to sell online, it is high time that you started to do so.
Recovery Insights: Small Business Reset
It is no doubt that the COVID-19 affected most small businesses in one way or another. However, it also offered opportunities for those who can innovate and take advantage of digital penetration.
Existing businesses started to sell online and new online businesses started to cater to the growing number of online shoppers.
Has the digital move paid off for SMB went online? The answer is a big resounding yes.
The Recovery Insights: Small Business Reset report found that digitally-enabled SMBs:
- Witnessed 5.0% increase in customer spending
- Registered 4.5% growth in transactions compared to their peers
- Recorded 6.4% increase in new customer spending
What’s more, 34% of SMB e-commerce sales were the direct result of digital transformation, which would not have happened with a brick-and-mortar store.
If you think merely going online is going to boost sales in your business, your perception is more likely to be wrong.
Competition among online retailers is cut-throat. This is because plenty of low-cost digital transformation solutions are available in the market to launch an online business. Not to forget dropshipping that empowers people to start their businesses in just a few hundred dollars.
What’s more, selling online means you’re going to compete with businesses around the world.
The report stated,
For a small business, going online during the pandemic meant investing dollars and resources in a viable online presence. But it also means the potential to compete on a global scale. Increasingly, small businesses aren’t just shifting digital-they’re starting digital, minimizing start-up costs and risks as digital-first companies.
The highly competitive e-commerce landscape means businesses have to be super creative in choosing products, offering unparalleled customer experience, and implementing sales & marketing strategies to stand out from the crowd.
Tips to Boost E-commerce Success
Large companies, because of their wealth of resources, are often at an advantage as they can easily lower prices. And small businesses, with their limited budgets, have to think twice before reducing their prices a bit.
However, it doesn’t mean that there is no hope for small businesses. In fact, small businesses have some unique advantages over large companies and you should focus on those to carve out a niche for your business.
Here are some tips that can help:
- Get personal in all aspects of sales (from order receiving to product delivery)
- Find ways to delight your customers to earn referrals
- Amp up your customer support
- Be active on social media platforms
Ramon Ray, a small business growth expert, says,
Be it offline or online, customers feel special if you add a personal touch to your offering. And running a small business provides you with plenty of opportunities to connect with your customers one-on-one to nurture your relationship, which will eventually translate into more referrals and sales.
About the Report
Mastercard Economics Institute prepared the Recovery Insights: Small Business Reset report, touching various reliable data points. You can read the full report here.