The Promise of E-commerce - A Decade of Deterrents Defeated

More small business retailers are coming online tosupports and proves the fact.
compete with the big players. Has a decline ofIt's hard to argue with that mentality and lack of
in-store profits caused this latest trend? Research ofawareness. After all a retail store should know their
increasing online spending? Social proof? Or could it becustomer far better than a pair of web consultants.
a new generation of e-commerce hosting solutions?We'd thank them for the time, leave our card, and
Although the internet has been a hub of activity formove on - knowing they'd be calling some time in the
the last ten years there are thousands of retailnear future.
stores - perhaps tens of thousands in your ownThat time has come to pass.
community - who have not yet ventured intoIn the last month (January, 2008), eighty percent of
e-commerce or an e-commerce hosting solution.the shop owners we'd spoken with just a month
Yet the last four years have seen massive growth inbefore, picked up our business card and called. Eighty
online spending, increasing annually by approximatelypercent in thirty days - they're now ready to learn
20%. Current estimates place e-commerce at $200more about taking their business online.
billion for all of 2007, just within our AmericanWhat Changed 80% of Retail Store Owners Opinions
borders.on E-commerce?
Given the huge potential, what could be holding allIn all cases combating the lack of knowledge and
those retailers back from becoming successfulchanging beliefs transpired as a result of research, a
e-tailers - especially when an e-commerce hostingdecline in annual retail profit, and social proof.
solution is both affordable and manageable?In some cases the retail store owners began new
As an internet consultant working closely withconversations with their customers. They found that
authors, service providers, merchandisers, andtheir customers were actually shopping for, or
retailers for the last ten years, my perspective isresearching products, online. Products that might have
that it all comes down to two core deterrents.been purchased in the retail store were now being
Knowledge-belief or money-time.purchased from another merchant, online.
Lack of Knowledge or Belief in the Internet EconomyOther retail store owners talked to 'the business next
Until just recently, as retail stores noticed a decreasedoor' - in some cases their competition - who had
in annual profit, the majority of small business ownersowned an e-commerce capable website for the past
had limited awareness and interest in the increase ofyear or more. Retailers turned e-tailers - who were
online spending.doing well and happily sending out packages to new
Subsequent meetings with retail stores netted similarcustomers secured from their websites.
responses of disbelief to our call to action: "YourStill others had engaged in or investigated on their
business income could increase by 10-100% byown, media research (newspaper, television) on the
offering your products for sale online."state of the economy and e-commerce. The
"My customers," they'd state, "aren't using thenumbers alone convinced them it was time to make
internet that way."the move towards e-tailing.
In reality, it was the shop owner who wasn't usingExpect to see an increase in small business websites
the internet 'that way'. Their customers were mostin 2008 as a result of defeating the deterrents of
certainly shopping online, at competitor's websites.e-commerce.
Research in ecommerce over the last four years