IEDR: Only 35% of Irish SMEs can process sales online
Irish shoppers are expected to spend €100 million (or €4 million an hour) on Black Friday, but only 35% of Irish SMEs with a website can process payments online and only 42% can take sales orders online, according to new research undertaken by the IE Domain Registry (IEDR).
Black Friday is the day after the US Thanksgiving holiday which, has been regarded as the beginning of the Christmas shopping season and the biggest shopping day of the year in the US but has recently become a phenomenon in this part of the world.
Much of that spend will be online between now and Cyber Monday – generally the biggest day for e-commerce in the US.
But the IE domain registry – the body responsible for the management and administration of Ireland’s official internet address .ie – says many Irish small and medium enterprises will miss out.
Its “IE Digital Health Index” shows that only 35% of SMEs have a website that can process payments online and only two in five can take sales orders online.
Just 14% of Irish SMEs plan to conduct any online initiatives, like special offers and promotions, for Black Friday and the festive season. In addition to Black Friday, recent research indicates that 1 in 3 Irish consumers intend to buy online on Cyber Monday.
The registry says than only 14% of Irish SMEs plan to conduct any online special offers and promotions for Black Friday and the Christmas season.
Describing this as a digital crisis, it has called for a combined effort from Government, industry organisations and Local Enterprise Offices to get SMEs selling online and capturing more of the €6 billion a year in e-commerce transactions by Irish consumers.
David Curtin, the CEO of IEDR said: “By 2020, the value of Ireland’s digital economy is expected to more than double to 10% of GDP, or €21 billion. Our own SMEs risk being left out of this commercial revolution if investment in their online capabilities remains low.
“Indeed, a staggering 1 in 4 Irish SMEs have no online presence at all, and 3 in 4 of those SMEs have no intention to establish one. 28% of the IE Digital Health Index respondents said that the lack of technical ability and financial supports are holding them back from transitioning online and engaging in e-commerce. To this end, IEDR runs the OPTIMISE Fund.
“Solving this digital crisis in the long term requires a combined effort from the Government, industry organisations and Local Enterprise Offices (LEOs) and business leaders. There is a dire need for SMEs to receive support for web design and e-commerce education initiatives, mentoring services, enterprise funds and improvement of Ireland’s broadband infrastructure,” added Mr Curtin.
