Businesses that have been quickest to get online were more likely to have grown revenue and staff, according to preliminary results of a Roy Morgan study commissioned by PayPal Australia.
In the last year, business growth increased by an average of five per cent for those who have sold online for at least 12 months; however, business declined four per cent for those that don?t sell online or haven?t sold online for at least a year. Additionally, 17 per cent of those same online businesses increased staff, compared with only 13 per cent who were not online for at least a year.
Despite the growth from businesses that have gone online, the majority of Australian retail SMBs have still not established an internet presence. According to the preliminary results, only one out of three businesses has been online since last July, even though Australian online retail has grown to a $31.7 billion AUD market this year. These findings support recent ABS data that 57 per cent of businesses currently have no online presence, and nearly three out of four (72%) do not receive orders via the internet.
Australian Retailers Association (ARA) Executive Director Russell Zimmerman said, ?These results confirm that the global transition to online retail has been a significant challenge for many local businesses. However, we know retailers here must keep pace with changing global market trends as future growth in the sector will unequivocally come from digital channels?.
To better work with the offline business population, Driving Business Online (DBO) was founded as a national educational initiative by PayPal Australia with the support of its many partners. Last year, the DBO campaign visited 14 regional towns in New South Wales, meeting with hundreds of regional businesses and providing them with the tips and tools to grow their business online from a team of online commerce experts. Now in its second year, the 2012 campaign is expanding its reach with eight workshop seminars across seven states and territories, a series of webinars and an educational website.
Jeff Clementz, Managing Director of PayPal Australia, said: ?Local retailers are an important fixture in Australia?s communities, but they must engage and embrace technology and connect with the new national and global consumer audience. Driving Business Online proactively provides our local SMBs with the tools and guidance to link their business with the online world. We?re excited to work with thousands of new local businesses throughout Australia during our 2012 campaign?.
After last year?s successful launch at Parliament House in Canberra, the 2012 DBO was launched at the Park Royal Hotel in Parramatta NSW. Nearly 500 local businesses attended to meet senior leaders from the organisations involved including Jeff Clementz, Managing Director of PayPal Australia, and Russell Zimmerman, Executive Director, of the Australian Retailers Association. The two-hour event will include a Q&A with Souzie and Emil Khoury, Founders of local online start-up StylishUnderwear.com.au. Robert Gerrish, Founder of Flying Solo, will be the event?s keynote speaker.
Mr Gerrish said: ?We know that among the top reasons SMBs set up their own business are flexibility, control and an improved lifestyle. These are all important benefits in being online and operating where and when suits them the best; however, only 13 per cent have a website that actually brings in business. Driving Business Online is a great educational campaign that will help these SMBs reach, engage and sell to the growing online community?.
Bob Knuckey, Founder of NSW-based start-up MoistureCure.com.au, said sales grew significantly following their involvement in last year?s DBO. He commented: ?In the last year our business has seen a great deal of growth which has been no accident. We implemented a number of things we learnt through our involvement in last year?s Driving Business Online program which can be attributed to our success. In the past 12 months, we have moved into new offices, purchased our own warehouse space, added 20 new products to our website and experienced over 40 per cent sales growth. Businesses can no longer put their heads in the sand when it comes to setting themselves up online. Our Moisture Cure business is proof that embracing new technologies really can make a huge difference?.
Mr Zimmerman concluded: ?Establishing an internet presence is an increasingly critical first step; it at the very least provides a significant opportunity to supplement their business with an additional sales and marketing channel. We?re pleased to partner with Driving Business Online for a second year, to benefit our more than 5,000 members and the greater $240 billion Australian retail economy?.applications. However, in the event of a corruption, not only is data replicated, but so, too, is the command or error that caused the corruption in the first place. Without the ability to restore an application to a point in time before a corruption occurred, organisations still are exposed to risk.
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