When it comes to selling online, small businesses are far more inclined to target consumers in their local area rather than look abroad for new business, according to a new report.
The Sensis eBusiness report found online sales by small businesses were largely made to customers in the same town and the likelihood of a sale lessened as the distance between a business and potential customers increased.
About 66 percent of businesses selling online said the bulk of their online sales came from local customers, an increase of 6 percent from the previous year. The report also found that 87 percent of businesses with an online presence successfully sold goods and services to local customers.
International customers were identified by just 5 per cent of businesses as their main customer group, a 2 percent rise over the previous year, while 27 percent reported at least some sales to overseas customers, the same number as reported last year.
Sensis report author Christena Singh said the report showed Australian small businesses were still grappling with how to use the internet to target overseas customers.
“eCommerce offers SMEs the opportunity to reach a potentially global market, so it is interesting to note most sales made using eCommerce are still relatively close to home,” she said.
“If small businesses want to make the most of the new world of mobile and internet enabled customers they really need to think strategically and put in place a strong digital business plan,” she added.
While 62 percent of small businesses have a website and 27 percent use social media for business purposes, only 15 percent have a digital business strategy, according to the report. This figure is surprising, given the fact that 55 percent of businesses reported they had recovered their initial investment in eCommerce, with a further 17 percent saying they expect to recover their investment next year.
SMBs nominated internet security as their number one eCommerce concern and a lack of personal contact with customers, the cost and time to introduce new technologies and the cost of hardware and software were issues raised by at least one in five businesses.
