Study reports that SMEs overwhelmingly want
e-commerce solutions, but just aren't there yet
MISSISSAUGA, ON, Oct. 29,
2015 /CNW/ - Despite an enthusiastic 81 per cent agreement that
mobile and digital communications are essential to the future
growth of their businesses, Canadian small-to-medium-sized
enterprises (SMEs) continue to lag when it comes to e-commerce.
According to UPS (NYSE: UPS) Canada's fifth annual Small Business
Challenges survey, one in five respondents (21 per cent)
confirmed they are not currently engaging in e-commerce – a number
that remains unchanged from 2014 survey data.
"We were surprised by this year's report, considering that more
people are purchasing online than ever before," said Mark Tabor, vice president, marketing, UPS
Canada. "Year-over-year growth of online sales in both B2C and B2B
channels shows us that customers want – and expect – vendors to
have e-commerce capabilities and, without them, these businesses
risk losing customers in a competitive marketplace."
Each year, the Small Business Challenges survey asks SMEs
about business performance, issues they face and the challenges and
barriers that impact their success. When asked what is restricting
their business growth this year, the top factors included: changing
consumer demands (59 per cent), international trade restrictions
(58 per cent) and a lack of available skilled talent (41 per cent).
While each of these elements are beyond business's direct control,
it remains clear that an e-commerce strategy is something that SMEs
can – and should – be taking action on more proactively in order to
break through and compete within a challenging marketplace.
This year, while survey respondents are aware of the importance
of e-commerce and the opportunities mobile and digital
communications presents, they continue to face challenges in the
form of technical know-how and resourcing to build their
capabilities in this area. Almost half (46 per cent), of the 81 per
cent of respondents that believe e-commerce is essential listed
"supporting online platforms with consistent, excellent customer
service" as the top barrier to successful online communication.
Listed second was the ongoing management and coordination of a
seamless supply chain and delivery system, ranked by 39 per cent of
respondents—an increase of almost 10 per cent (up from 30 per cent
in 2014).
To help address these challenges, UPS Canada offers services and
online tools that can help SMEs build solutions for an omni-channel
approach to their business that includes a viable, effective supply
chain strategy. UPS also offers incentives such as 20 per cent off
shipping when signing up for the UPS Small Business Program.
"We collaborate with our customers to help solve their
e-commerce challenges so that they can focus on what they do best,
their business," adds Tabor.
Other findings from the 2015 Small Business Challenges
survey include:
- A mere one-quarter (22 per cent) of respondents reported that
their business performance is exceeding expectations, while 26 per
cent are flat-out failing to meet them.
- Supply chain strategies are becoming more of a priority: more
than half (52 per cent) of SMEs reported having a supply chain
strategy, up from 45 per cent in 2014 – and of those, 43 per cent
are leveraging an outside supplier, as compared to 39 per cent in
2014.
- The cost of staffing is less of a concern for SMEs this year,
falling from 64 per cent in 2014 to 47 per cent in 2015 amongst
respondents who cited this as a restriction to their business
growth.
UPS Canada celebrated
Canada's over 1 million small and
medium-sized enterprises during Canadian Small Business Week which
took place October 18-24, 2015. For
more on UPS' small business solutions, visit ups.com/new/ca
Leger Survey Methodology:
This survey was completed
online from August 24 to September 4,
2015 using Leger's online panel, LegerWeb, with a
sample size of 301 respondents. Individuals working for, or running
a small or medium-sized enterprise (SMEs) that currently spends at
least $5,000 annually on shipping
were interviewed. Only those at or above a director or senior
manager level qualified. A probability sample of the same size
would yield a margin of error of +/- 5.7%, 19 times out of 20.
About UPS:
UPS (NYSE: UPS) is a global leader in
logistics, offering a broad range of solutions including
transporting packages and freight; facilitating international
trade, and deploying advanced technology to more efficiently manage
the world of business. UPS is committed to operating more
sustainably – for customers, the environment and the communities we
serve around the world. Learn more about our efforts
at ups.com/sustainability. Headquartered in Atlanta, UPS serves more than 220 countries
and territories worldwide. The company can be found on the web
at ups.com® and its corporate blog can be found
at longitudes.ups.com. To get UPS news direct,
visit pressroom.ups.com/RSS.
SOURCE UPS Canada