After working with small businesses for the past 20 years, my instinct is that many owners fail to set up their online stores for selling because it’s perceived as complicated to get started. Despite this gestation, evidence of the trend toward convenience is overwhelming.
In 2021, total e-commerce sales in the U.S. reached $959.9 billion, an 18.3% increase from 2020 but a figure that overshadows the total online sales of $199.3 billion in 2011. It’s estimated that by 2040, e-commerce purchases will make up 95% of all sales.
The accessibility of digital and cloud systems levels the playing field between the more prominent and smaller players. Once small business owners commit to switching to POS systems, they are relatively simple to implement. By tapping into the same technology big-box chains use, smaller stores can capitalize on the natural advantages of being local.
Closing the Technology Gap
A quality POS system must be tightly knit into an e-commerce engine; small businesses typically have finite stock to meet consumer demand. It’s not uncommon for a customer to make a purchase, such as a pair of sneakers, only to find that they won’t be available if they don’t buy fast enough.
There are a variety of incredible tools and systems that are preconfigured to help manage supply chains and just-in-time inventory. Shopify, for example, has an end-to-end POS system embedded throughout its e-commerce process that clients can install on their websites. Big web hosting providers like GoDaddy also have e-commerce solutions.
After creating an online store, shipping and handling present a unique challenge for small business owners. Some may manage deliveries at the back of their store, while others may drop ship to warehouses or supply centers based on orders. To address those needs, a robust 360-degree solution using platforms like Stripe or Shopify can manage the entire business from an inventory and distribution perspective.
Playing Big Brands at Their Own Game
Big-box retailers retain a crucial advantage over their smaller competitors: Their products are better merchandized for the online shopping experience. They feature more products, photos, sizing tools, measurement options and product reviews.
Over half of consumers (55%) use online reviews as part of their product research to make the best purchasing decision. Yet, according to one estimate (registration required), only about half of small businesses have a website, and fewer sell their products online. Most small business owners are their store’s “chief everything officer” and are too busy to become marketing and e-commerce experts. It slips to the bottom of the to-do list, or they opt out altogether.
Superior systems even use abandoned purchases as a re-marketing opportunity. When consumers leave a product in the shopping cart but fail to finish the purchase, they’re eligible for a discount or other incentives.
Leveling up their marketing balances the scales between small businesses and large retailers — before factoring in any bias against big brands.
Leveraging Local Advantage
This presents another opportunity for small businesses to emphasize their point of difference. There are many things small business owners can leverage that a large company cannot. They encourage local investment, carry local product ranges, build community connections, and offer more personalized service if visiting in person. Small businesses give socially conscious shoppers a chance to vote with their wallets.
Small but Mighty
Technology is transforming the retail landscape for all players. Small businesses that leverage the best systems for their needs are well-placed to offer convenience and appeal to the conscientious consumer. Eighty percent of consumers do their product research online, and 72.9% of e-commerce sales were made through cell phones in 2021. Optimizing POS and e-commerce systems for use on any digital device can bring small businesses up to speed with big-box brands.
Being part of the local community is also an untapped strength of small businesses. Owners miss out if they don’t drive home that advantage by offering an online shopping experience showcasing their products and goodwill. The most significant barrier is not cost or complication but getting started.
