E-COMMERCE DELIVERS IMPROVED PROFITABILITY FOR SMALL AND MID-SIZED BUSINESSES ACCORDING TO "INTERNET FOR DUMMIES" CO-AUTHOR AND INDUSTRY ANALYST CAROL BAROUDI
Baroudi States that E-Commerce is Here to Stay and Opportunities Exist for SMBs, 85% of which Currently Do Not Have Online Capabilities
East Brunswick, N.J.-December 13, 2001-Despite the uncertainty of the economy and the "dot com" bust, right now is an ideal time for small and mid-sized businesses (SMB) to launch an e-commerce operation and improve profitability according to a Hurwitz Group Report titled, "E-Commerce For Mere Mortals-Fact and Fiction For the Would Be E-Merchant." This paper written by Carol Baroudi, co-author of "Internet For Dummies" and commissioned by Actinic Software, LLC, comes on the heels of a recent research report which states that only 15% of SMBs have e-commerce capabilities. The research polled over 300 small and medium-sized businesses in three of the highest growth e-commerce segments: specialty foods, sports equipment and home accessories.
In her analysis Baroudi states that despite the recent demise of many large, well-established online companies, the current climate is ideal for an SMB to launch an e-commerce operation. According to the paper, creating an online presence does not require an inordinate amount of technical expertise or money and can be executed in a relatively short period of time.
"The Internet provides an opportunity to add a compelling new dimension to a brick and mortar business, which if already successful, means you`ve tackled harder problems than you`ll face setting up an e-commerce Web site," said Carol Baroudi. "Launching an eBusiness does not need to cost an arm and a leg or be overly complicated. E-commerce technology has matured and is available to and affordable by mere mortals. Companies like Actinic make it incredibly easy for small business owners to quickly launch an eBusiness that could really energize their existing operation and improve profitability."
According to the Hurwitz report:
· More and more customers are demanding the ability to buy the goods they want online-not all goods, but many; not all customers, but many. Baroudi believes that if a product can be sold over the Internet-that is can be sold by a company who can make a profit selling it over the Internet-it should be. This is especially true for niche and specialty items, hard to find items, and brand name goods. If the owner of the brand or supplier of the niche or specialty items doesn`t provide an online store offering these goods, some other enterprising entity will.
· You may find that taking orders online offers greater efficiency, lower costs, and fewer processing errors. Most merchants find that faxed orders usually require a confirmation by phone to clarify the order and make sure it`s correct. Online orders are exempt from the order entry errors associated with entering faxed or mailed-in information.
· Many online stores nicely supplement their offline counterparts. This gives companies the ability to offer products online that they might not have shelf space for in an offline store. Offering customers another way to do business with your company and by allowing them to do business with you on their time can help you keep your customers.
The research paper combined with a recent national survey conducted by PFA Research, Inc., (www.pfa-research.com) clearly demonstrates that a tremendous opportunity exists for SMBs to implement e-commerce capabilities that in turn enable them to realize significant improvements in profitability. Specifically, the research showed that 85% of SMBs do not have online ordering capabilities and instead rely on older methods such as fax and the telephone to process all transactions. These older methods cost a significant amount to process because of the time and manpower required to complete each order. With e-commerce software, on the other hand, processing orders can cost a dollar or less depending on the quantity of orders received.
"Through the research we discovered that a vast majority of SMBs are relying on older technologies to run their business instead of taking advantage of the Internet," said Chris Barling, co-founder and chief operating officer at Actinic. "But as the Carol Baroudi paper confirms, expanding into e-commerce is simply a move along the technology continuum from telephone to fax to online ordering. The cost savings and customer service improvements are real and readily achievable for almost all SMBs."
About Carol Baroudi
Carol Baroudi is the co-author of the book Internet For Dummies. Currently preparing for its 8th edition, Internet For Dummies is the best selling Internet book in the world and one of the best selling books of all time. Formerly the Vice President of Emerging Software and Technologies at the Hurwitz Group, Baroudi is now the Founding Partner of the Baroudi Group, an exclusive group of top-tier industry experts dedicated to providing strategic and tactical advisory services related to transforming and emerging technologies. For more information about the Baroudi Group please visit the Web at www.baroudi.com or call Kim McIntyre at 972-801-9806.
About Actinic Software
Founded in 1996, Actinic Software is the leading provider of desktop e-commerce software solutions for small-to medium-sized businesses. Actinic`s full range of software products provides cost-effective ways to design, build, manage and grow online businesses, supporting business-to-consumer and business-to-business e-commerce initiatives. The company has more than 15,000 licenses sold in over 40 countries worldwide. For more information, contact Actinic at 877-673-6365, or via the Web at http://www.actinic.com.
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Courtney Keegan
Schwartz Communications, Inc.
Prospect Place, 230 Third Avenue
Waltham, MA 02451
P: 781.684.0770
F: 781.684.6500
www.schwartz-pr.com
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