41% US small businesses to raise e-commerce budget for 2023: Report

12 Mar '23

2 min read

Pic: Shutterstock/ katunes pcnok

Around 41 per cent of US-based small businesses with websites are increasing or significantly increasing their 2023 budget for e-commerce platforms, while only 26 per cent are decreasing their budgets in the face of economic uncertainty, as per a report. The investment is aimed at improving the customer experience and boosting sales, as small businesses recognise the need to have a strong online presence and a seamless e-commerce platform.

Nearly half of the small businesses with websites have e-commerce functionality, representing approximately 10 million small businesses in the US. Much of this growth was driven as a direct result of the pandemic, and many small business owners indicated they are in it for the long term. Only 15 per cent have or are planning to drop services they obtained during the pandemic, according to the report titled 2023 SMB eCommerce Technology Investment Outlook by research firm Thrive Analytics.

However, the report also highlights some notable e-commerce challenges faced by small businesses, including the struggle to keep up with new technology, payment processing issues, and difficulties in managing content and utilising multiple vendors for services.

To address these challenges, small businesses plan to prioritise investments to upgrade basic functionality, such as payment improvements, monitoring performance, and expanding delivery options.

“Small businesses are recognising the importance of e-commerce technology to stay ahead and capture a larger market share,” said Jason Peaslee, managing partner of Thrive Analytics. “Our report shows that investment in e-commerce technology is strong, and small businesses are committed to investing in the long-term success of their e-commerce operations.”

Fibre2Fashion News Desk (NB)

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