As the holiday season approaches, recent research indicates a significant shift toward online shopping, presenting both opportunities and challenges for small to medium-sized enterprises (SMEs).
A study conducted by CPM Australia highlights the evolving consumer shopping habits and offers valuable insights for retailers as they prepare for the busy trading period ahead. The report suggests that SMEs without an online presence risk missing out on potential sales.
The survey, which included 500 participants, found that while 89% of respondents plan to shop both online and in physical stores, a notable 69% expressed a preference for purchasing from online marketplaces.
Brad Miller, General Manager at BizCover, noted that despite a resilient consumer spending trend amidst economic uncertainty, this surge in online shopping could pose specific risks for SMEs. “The rise in online shopping could increase exposure to risks for e-commerce businesses,” he stated.
Despite the challenging economic landscape, the report indicates a “cautiously optimistic” outlook for Christmas spending in 2024. Approximately 76% of shoppers indicated they would spend either more or the same as they did last year, suggesting that SMEs should optimize their sales strategies before customers turn to online shopping.
Miller highlighted that many SMEs refrain from establishing online operations due to the heightened risk of cyber threats. The report underscores that online sellers are responsible for securely handling customer payment information, which is a prime target for cybercriminals.
Interestingly, many SME owners underestimate their vulnerability to cyberattacks, even though they account for 43% of such incidents in Australia. Miller emphasized that the risk is not limited to e-commerce businesses, as any enterprise with a website, EFTPOS machine, or smart devices could be susceptible.
“No business owner wants to consider the possibility of shutting down during the peak trading season due to a cyberattack disrupting operations,” he warned.
The research also revealed that 63% of Australians plan to finalize their holiday shopping by the end of November, aligning their purchases with popular online sales events like Black Friday and Cyber Monday. Miller urged retailers and small business owners to prepare in advance to meet this demand.
In conclusion, small businesses are encouraged to ramp up their sales efforts before the holiday rush, as failing to do so could leave them at a disadvantage against larger online competitors.
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