According to JupiterResearch, total online spending by small businesses was $47 billion in 2006. However, according to the firm’s recent report titled “US Online Small Business Market Category Forecast, 2007 to 2012,” this figure will reach $70 billion by 2012.
“Growing competition among online retailers for small business spending will in-turn put pressure on them to offer promotions and incentives leading to higher conversion online,” said Sonal Gandhi, an analyst at JupiterResearch and author of the report.
The number of small businesses making purchases online at a compound annual growth rate (CAGR) of 4.3% through the year 2012. This will be mostly due to the expected growth in the number of small businesses.
Convenience, better prices, and variety are key factors that will attract small businesses to making their purchases online. Stronger relationships are also contributing to this trend.
Small businesses, like consumers, are also conducting much of their research online. Companies should therefore make it a point to analyze the relationship between online activities and off-line sales, according to David Schatsky, President of JupiterResearch.
Source:
http://www.webpronews.com/insiderreports/2007/09/10/small-
business-online-spending-to-top-70-billion
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