Irish small and medium enterprises ‘falling behind’ on ecommerce

Irish small and medium enterprises (SMEs) are “falling behind” with ecommerce and must evolve to meet consumer demands, according to a new report.

A Web Health Report published today by .IE (the national registry for .ie domain names) and retail industry trade body Retail Excellence Ireland (REI) has called for additional government supports to help retail SMEs to develop their online presence.

The report, which included 525 companies, found that less than half (46 per cent) of retailers have cart functionality on their website, enabling them to sell online.

It found that in particular, retailers are falling behind customer expectations in terms of user experience (UX).

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Just 14 per cent of REI member websites offer a live chat function, yet international studies show that 73 per cent of consumers consider live chat to be the best way to communicate with a business.

Only 18 per cent of REI members show customer reviews on their website, despite the fact that shoppers visiting a website with one to 10 reviews are 52 per cent more likely to make a purchase.

In terms of security, while 91 per cent of websites have a security certificate, only 22 per cent of REI members are using Captcha security tests on their websites. Captcha can help to distinguish between humans and bots and can protect businesses from malicious online attacks.

The report found that only 23 per cent of REI member websites are cookie-compliant, and warned that companies without a policy around cookies used to collect data from website visitors could face “very significant” fines from the Data Protection Commission.

The research also highlighted opportunities for Irish retailers to boost the promotion of their online business, as only 20 per cent of websites are currently using online ad tracking, and only 16 per cent of REI member websites featuring video functionality.

Oonagh McCutcheon, chief communications officer at .IE, said that consumers want a “safe, secure, and slick website to shop on”.

“Irish shoppers are used to shopping online both in Ireland and internationally, and they have an expectation that the experience that they get with the biggest, slickest global brands is what they’re going to get from their local boutique. Consumer expectations are very high and so it’s important that retailers would be aware of that,” she said.

Jean McCabe, interim chief executive of REI, said that more efforts and structures are necessary to further improve retailers online visibility and competitiveness.

“We know first-hand from our members that they are under resource pressure and financial pressure. While an online presence is crucial to business success, retailers often focus, understandably, on keeping the doors of their business open so there is a job to be done to empower and incentivise SMEs to develop their online presence,” she said.

REI and .IE have called for an expansion of the pandemic Online Retail Scheme to microbusinesses, as well as targeted supports to help retailers improve their online offering in areas highlighted by the Web Health Report.