IT news: Actinic 2005 report on SME ecommerce.

New research from ecommerce software developer Actinic points to a sharp rise in internet adoption and ecommerce deployment among small British retailers. According to Actinic's annual Ecommerce Report, the proportion of small to medium businesses in the UK retail sector that own web sites has risen sharply from 7% in 2004, and may be as high as 25%. In addition, the percentage offering an online ordering and payment facility has also increased. The figure stood at 3% in 2004 and is at 80% in 2005. However, it still remains low overall and tags behind the deployment of new business web sites. There is a trend to using server-based/ASP ecommerce solutions with a growth over 2004 of 22 percentage points to 29%. The survey also revealed rises in the number of companies planning to adopt ecommerce in the future (13%), and in the number of online traders planning further development to their sites (48%). The findings confirm predictions by Gartner, of a second wave of internet adoption driven by the spread of broadband. Profitability among retail sites remains high at 70% (72% in 2004),

Actinic, comments, '2005 may prove to be the year when ecommerce finally comes of age. But there is still a long way to go before die percentage of businesses trading online comes anywhere near the percentage of consumers who are shopping online. Many small businesses are still missing out on a huge opportunity--and at a time when traditional retail is under increasing pressure.'

2005 Report Highlights

1. The market appears to be entering a second wave of business internet adoption, perhaps driven by the spread of broadband. The number of small and medium retailers with web sites has risen sharply from 7% in 2004, and may be as high as 25%.

2. The number of ecommerce sites has also risen sharply from 3% in 2004. At 8% in 2005, it still remains low overall, and lags behind the deployment of new business web sites.

3. The high level of profitability among retail sites (70% at present, from 72% in 2004) was sustained in spite of a doubling in the overall number--indicating that the majority of new sites became profitable within the year-

4. The number of small and medium retailers with firm plans to adopt ecommerce bottomed out at 7% in 2004, and has risen to 13%--roughly the same level as in 2003.

5. There has been a slight rise in the number of online retailers planning further development of their sites--48%, compared with 41% in 2004. Companies are increasingly citing lack of resources such as time money and knowledge as the inhibitors that are preventing from adopting ecommerce..

6. ASP server-based ecommerce solutions are growing in popularity, up from 7% of all ecommerce sites in 2004 to 29% in 2005.

www.actinic.com