

| Figures from the Office of National Statistics show that internet-based
sales are now worth more than £71 billion in the UK and the rise in
internet trading is fastest among smaller businesses. Recent figures
from research firm Forrester forecast that the average on-line shopper
in the UK will be spending £1,670 each year by 2011. This would make
the UK ecommerce market the largest in Europe. Jaap Favier, research
director at Forrester, says this is because of early internet adoption
in the UK and the greater penetration of credit cards, which provides a
more or less universal payment mechanism in which consumers have
confidence.
The top categories for on-line spending in the UK remain media and travel, but Forrester’s figures show that smaller sectors, such as toys, have doubled recently, and other sectors, including footwear, household goods and cosmetics, have grown by 67 per cent. These are encouraging figures for smaller, specialist suppliers, eyeing up the internet market. Smaller firms may have taken longer to get on-line than the big guns that have greater IT resources, but there is every sign that small companies understand the potential of doing ebusiness on the web and are looking for ways to maximise on-line sales. And whilst getting on-line can seem daunting, with a few simple guidelines, it should not be impossible and can bring major benefits to small firms.
Managing director of a top web development company and the former head of European Ecommerce Association, says the first thing companies should do is – nothing. “It’s better to have no site than a bad site. There are a lot of people putting up a one-page web site, saying page under construction. That’s the kind of profile you don’t want.” When the company is ready to put up a proper web site, Ellul’s advice is that less is more. “It is better to have a few well-designed pages than to bite off more than you can chew and start trying to do lots of things with technology just for the sake of it,” he says.
Ellul is similarly practical when it comes to what to do with the web site. “Don’t try and use ecommerce if you have nothing to sell,” he points out. Too many companies, according to Ellul, attempt to sell services on-line when what they should be doing is using the web site for marketing. “If you are an accountant, you will have lots of services, but you won’t sell those services on-line.” One of the biggest benefits of ecommerce for small companies, particularly start-ups, is the low level of investment needed to get up and running. “Ecommerce is fantastic when you are starting up a business,” comments Georg Braun, one of the two directors of on-line motorcycle equipment firm Get Geared, which was started with an investment of just £1,000 and now takes between 600 and 800 orders a month.
Chris Barling, CEO of another large ecommerce solutions supplier, agrees. “Anyone setting up a traditional retail shop has to buy the premises, pay rates, fit it out and fill it with stock. The cost is probably twice as much as setting up a business on-line.” Barling believes cost should certainly not deter any small business from looking at ecommerce. “Our entry-level product is under £50 to sign up, and then £20 a month, plus VAT, so at that level, if you haven’t got £100, there would really be a bit of a question about your business. And if you compare growth in standard retailing with growth in on-line retailing, there is no comparison. The opportunities really are all on-line.” |