Santa has small business on his gift list

STOCKTON
November 16, 2005 6:53am

Small businesses are optimistic about the 2005 holiday shopping season, according to a survey of over 1,200 U.S. small businesses by Roving Software Inc., an e-mail marking company which does business as Constant Contact.

Its survey says 60 percent of small businesses anticipate a strong holiday sales season.

Broken down by industry in terms of anticipated holiday sales outlook, retailers lead the pack with 73 percent feeling optimistic about this holiday season, followed by hospitality (i.e. restaurant, travel, and lodging) at 70 percent. Fifty-eight percent of consumer services businesses (i.e. beauty, spa, photography, fitness) surveyed anticipate strong sales this holiday season.

It also found that 65 percent of those surveyed believe that higher energy costs could lead to consumers making more online purchases

"The holiday sales season is important for the growth of millions of small businesses, and the near-term outlook - despite recent concerns about rising energy costs - shows strong growth is likely ahead," says Gail Goodman, CEO of Constant Contact, in a written statement.

In its own research, Affinity Internet Inc. which sells Web services to small businesses, found that increasing energy costs and the effects from natural disasters will drive more people online to do their shopping this holiday season. Its survey also says shift in e-commerce is expected to directly impact small businesses.

Some businesses have already begun to feel the effects of increased online shopping, Affinity says. Of those surveyed, 44 percent have seen an increase in online sales over the past year. When asked about sales expectations for the upcoming holiday season, a large majority of small business owners felt that the overall growth of e-commerce will continue throughout the holiday season and that a continued increase in sales is expected through web sites.

Other results:

• 70 percent expect that overall e-commerce sales this holiday season will be better than last year;

• 69 percent expect to see an increase in web site traffic this holiday season; and,

• 54 percent expect that their businesses e-commerce holiday sales will be better than last year, with 73 percent expecting at least a 10 percent or more increase.

And in a third survey, this one paid for by Internet service provider Yahoo Inc., more than eight out of ten holiday shoppers (83 percent) said they would shop for holiday gifts online, and a similar number, 80 percent, said they are likely to purchase gifts online from small businesses.

Nearly a third (30 percent) of holiday shoppers polled for Yahoo said they would do at least half of their holiday shopping online. In addition, nearly two thirds of holiday shoppers (63 percent) said online specialty or 'niche' retailers are the "best places" to shop for unusual or hard-to-find gifts.

"Holiday shoppers are ready and willing to buy gifts online from small businesses that offer variety and value," says Rich Riley, vice president and general manager of Yahoo Small Business. "The survey results are an encouraging confirmation that small business e-commerce has become an integral part of the holiday shopping experience for many consumers."

Like the other surveys, Yahoo found that the cost of gasoline is expected to be a factor in store traffic this holiday season.

Nearly four out of five holiday shoppers (79 percent) said they would change their shopping habits if gas prices remain high or climb higher during the holiday buying season.

The Constant Contact survey was conducted through targeted online distribution to U.S. small businesses and associations, including Constant Contact customers, recording results from more than 1,200 respondents. The survey was conducted Oct. 21- Nov. 7.

Conducted in September, the Affinity survey was an invitation-only, online survey conducted among a sample of Affinity customers. Of the 2,725 participants, 77 percent of those who responded have between 1 and 10 employees, and 11 percent have between 11 and 25 employees.

Harris Interactive fielded the study on behalf of Yahoo from Oct. 25-27, interviewing a nationwide sample of 1,813 U.S. adults age 18 and over who plan to do any holiday gift shopping. Data were weighted to be representative of the total U.S. online adult population on the basis of region, age within gender, education, household income, race/ethnicity, and amount of time spent online.