.IE Tipping Point Report 2020

Examining the status quo E-commerce starts with an online presence. SMEs need to be visible, and that requires having a website or social media page, preferably both. Two-thirds of Irish retail and customer- facing professional services SMEs have a website, a figure that rises to more than three-quarters (76%) among businesses with more than six employees. Websites are highly valued by the businesses that have them. The vast majority (90%) see their website as important in driving awareness of their business; 77% see it as important in generating sales in some way; and 64% see the website as an important point of transaction, where sales can be captured and processed. However, most Irish SMEs stop their digital journey here. Even though online spending is the norm among Irish consumers, very few Irish SMEs actually sell to them. Our research shows that just 25% of SMEs sell online, which implies that the other three-quarters rely entirely on physical, in-person sales. Consumer preference Just because 95% of consumers shop online, it doesn’t mean that they never shop in-store. In fact, most consumers want the “omni-channel experience”, where their shopping needs are met by a seamless combination of traditional main street retail, online, and e-commerce. SMEs that are flexible enough to facilitate both will attract more customers and be able to better compete with international retailers. While Covid-19 has for now made many consumers wary of in-store shopping, findings in Section 2 suggest that most anticipate a blended routine when it is safe to do so. Section 1  |  E-commerce in Ireland before Covid-19 [continued] 66% 76% Just 25% of Irish retail and customer- facing professional services SMEs sell online (Base: 500 SMEs) The importance of a website (Base: 329 SMEs with a website) 90% of SMEs say their website drives awareness of their business 77% of SMEs say their website helps to generate sales 64% of SMEs say their website is important as a point of transaction to capture and process sales OF ALL IRISH RETAIL AND CUSTOMER-FACING PROFESSIONAL SERVICES SMEs HAVE A WEBSITE. THIS FIGURE RISES TO 76% AMONG SMEs WITH MORE THAN SIX EMPLOYEES. (Base: 500 SMEs) 5