JupiterResearch just released a new report, "US Online Small Business Market Category Forecast, 2007- 2012," that predicts that total online expenditures by small businesses is growing at a rapid rate - with online spending expected to top $70 billion by year 2012, up from $47 billion in 2006.
Online spending growth is anticipated to come via overall growth in the number of total small businesses, rather than via significant increases in small business online buyer penetration which is already at a mature 71 percent.
JupiterResearch analysts see retailers continuing to promote the online channel because of its better margins and projects growing competition among online retailers for small business spending - leading to more promotions and incentives to drive higher online conversion rates.
The report posits that small businesses will continue to buy online for such value proposition reasons as convenience, better prices, or greater/wider variety. Jupiter predicts that "as relationships with online suppliers mature, small businesses are likely to provide them with a greater portion of their business."
JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business.
Shivonne Byrne, Innuity CMO