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Which Businesses Do Not Use eCommerce?

Sanjay Kumar Negi

Senior Marketing Manager @ Shiprocket

December 14, 2017

3 min read

While online businesses are on the boom across the world, there are still quite a lot of businesses that do not use eCommerce. To put it simply, their business objective does not seem to have a requirement for an online business platform. So let us have an idea of which businesses do not really use eCommerce as their business requirements, and whether they can get accustomed to the eCommerce platform to enhance their reach and reception.

Usually, it is the small-scale businesses that do not use any form of eCommerce platforms. According to a survey published by SurePayroll in their monthly Small Business Scorecard, it shows that only a meager 26% of small business owners agree to use eCommerce platforms or have their own sites. On the other hand, 74% of small businesses say that they do not find any need to make use of eCommerce platforms for their business.

In most cases, a number of business factors play a significant role in determining whether at all a business will switch to an eCommerce platform. For example, the location and the target audience are two defining factors regarding the same. Most of the small-scale businesses operate within a small location and so their target audience is also limited. As a result, they do not feel any inclination to reach a wider audience through eCommerce.

Rather, they depend on conventional marketing mediums like word of mouth or local classified ads to promote their products. If a small scale entrepreneur opens a shop in a convenient area of a locality, it does him quite good as lots of people will automatically walk in there and start buying.

Secondly, most of the small-scale businesses do not have a huge product base and so they do not find the need to reach the wider audience. In most cases, their products may be even based on the tastes and preferences of a particular geographical area where they are located. As a result, there is no need for an eCommerce platform to promote the items.

Last but not the least; budget plays an important factor for businesses when it comes to eCommerce. In case of small businesses, they would rather prefer to have a small brick and mortar store rather than a website. They mainly depend on the regular customers who walk in and shop rather than tech-savvy users. Moreover, small-scale businesses prefer cash transactions rather than electronic transactions.

Some of the small-scale businesses that do not use eCommerce may include local grocery stores, handicrafts and cottage industry stores, local restaurants and dining outlets and so on. Nevertheless, with the world turning towards technology in all aspects, it helps to make use of eCommerce for the promotion of business. Although they may not want to sell through eCommerce, they can use it to let more people know about their business and lure customers. It can be done on a small scale but may yield great results for the business.

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