Online SMB’s and Their Growth in 2021
February 23, 2022
Small and medium sized businesses (SMB) reportedly had a great year, as they saw their sales numbers rise. Sendlane, a Software company based in San Diego, California, surveyed 150 SMB’s. The results showed that 92% of these businesses saw their sales rise.
For 21 percent of SMB companies, sales were up by at least 40 percent. Most companies (34 percent) saw a sales increase of 10 to 20 percent, followed by 33 percent who had an increase of 20 to 40 percent.
Profit margins also grew considerably: 90% of the companies showed more than 10% increase in overall profit. 93% of the surveyed companies expect sales to keep climbing, with 28% expecting a growth of at least 40%.
The survey also showed website traffic has been more consistent than before. Whereas consumers used to wait for promotions and sales in order to shop online, customers are now more likely to trust ecommerce sites regularly.
As a result, many businesses are investing in their online presence and tools.
Up to 85 percent of retailers spent more money on ecommerce tech in 2021 than they did in 2020. Of that group, 46 percent spent at least 40 percent or more than the year before.
However, even with a good year and outlook, using online tools brings with it it’s own set of challenges: up to 35% of surveyed companies admitted cyber fraud has been their greatest concern, 18% are worried by whether financial conditions make it more difficult for shoppers to spend money, 13% are concerned by shipping delays and 8% mentioned website stability as their main concern.
More than half of these businesses are also worried about the marketing strategies being used today, and wonder whether consumers are experiencing marketing message fatigue. As a result, some of these businesses want to try and engage shoppers in new ways. And a large majority are planning to increase their marketing outreach by up to 20% in 2022.
Ecommerce has been greatly influenced by the state of the world, as the Covid-19 pandemic forced many into lockdowns, consumers are now more likely to trust online retailers, this includes SMB’s.
Certainly the pandemic has accelerated the shift to online shopping, but consumer buying habits were moving in this direction well before Covid, too. What really stands out about our 2021 eCommerce Health study is that 53 percent of respondents believe the state of ecommerce is ‘strong,’ and 39 percent believe it is ‘very strong.’ This tells me that despite the concerns related to the economy, shipping issues, cyber fraud, etc., ecommerce retailers are in a great position to succeed in 2022.
Want to learn more? Check out Ecommerce News’ full write-up here.
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