Revealed: Why our SMEs are laggards in adopting eCommerce

A few months ago there was considerable ‘chatter’ on the social networks about how slow Australia’s SMEs were at adopting eCommerce.

Coinciding with the release of Sensis’ annual eBusiness Report and the Online Retailer conference in Sydney, the online business community was amazed at just how slow our smaller businesses were at adopting a half professional website.

According to the Sensis report, only 54% of small (1 to 20 staff) have a website at all, with 28% of small business stating their intention not to have a website at all. Another report added that only around 10% of our retailers actually sell their product online.

Given that the internet is now recognised as the pre-eminent shopping resource for the entire population, it begs the question…

Exactly why are so many small business operators failing to adopt websites and eCommerce?

The Sensis report goes on to tell us that that the three major concerns about eCommerce were that:

• People could hack into your computer system.
• There was a lack of personal contact with the customer.
• There was a lack of expertise and knowledge in computers.

But I’d like to suggest a reason that accounts for all 10 concerns reported:

‘Our lack of understanding of technology undermines our confidence and control over our business.’

Or more simply put, technophobia.

How to strike fear into a small business operator
Anyone who has ever spoken to a less computer literate business owner will recognise the symptoms straight away.

When raising technology and the internet in particular, ordinarily articulate and confident business people immediately become defensive and nervous. Their fear is palpable.

Within seconds of raising the subject you are met with a string of (mostly inaccurate) reasons as to why they aren’t interested in adopting the web.

So while the concerns stated in the Sensis report no doubt are a true representation of that felt by the sample group, it would be very revealing to quiz the same sample about their competency with computers.

My tip is that it would have been extremely low.

Low use = low understanding
And this lack of competency prevents them from truly understanding how it is that the web is so important to their business.

They’re not seeing how the web is the first place consumers and business buyers turn to for information about a product or service. Or how seamless and convenient it is to purchase a product online. Or how social networks can have a massive impact on the popular opinion of their product. Or how it’s surgically attached to anyone under 30.

Instead they rattle off as many concerns as they can think of so they can at least look like they are reasonably informed on the subject.

But they may as well just come out and tell you that they are completely illiterate when it comes to computers and that they are hoping like crazy they will be able to retire or sell out before it sends them out of business altogether.

This is no indiscriminate swipe at those who haven’t had the opportunity to learn about computers.

Confronting an intimidating and scary world
If computers aren’t your tool of trade it can seem somewhat daunting when you see your kids flying around the keyboard faster than a virtuoso pianist.

But just because they don’t use computers themselves doesn’t mean that they can’t grasp the benefits of a professional online presence for their business.

After all, you don’t need to be a designer or printer to understand the benefits of a good brochure. Or a video producer to recognise the worth of a professional TV ad or video.

Web now mission critical
What’s important is to understand the fundamentals of eBusiness, as we covered here a few weeks back. Because the days of operating without a professional web presence is now tantamount to business suicide.

Then it’s a matter of either finding a good web professional (ideally one who can offer impartial advice and is across the whole gamut of eMarketing techniques) or a good staff member (or both) to oversee it for you.

Most importantly, your web presence should yield measurable results that are monitored and improved on a regular basis.

Because one thing’s for certain, the web doesn’t stand still for anyone. Just ask Rupert Murdoch.

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Craig Reardon is a leading eBusiness educator and founder and director of independent web services firm The E Team which provide the gamut of ‘pre-built’ website solutions, technologies and services to SMEs in Melbourne and beyond.