This study explored eCommerce as a growth strategy for small businesses, particularly because only a small percentage of small businesses have any online presence. The focus was on identifying critical factors which propel adoption and success for small businesses and explored the marketplace as a tool of growth. The study took an inside-out view of the marketplace solution by investigating online customers and merchants views of the eCommerce providers’ solution. Although several studies about eCommerce exist, not many are focused on eCommerce providers. This study adds to this existing knowledge.
A mixed-methods approach utilizing surveys and interviews for data collection was employed (online questionnaires to 95 e-merchants, 385 online customers and 1 eCommerce service provider). The Andrew Fisher formula was used to determine the appropriate study size. A simple random probability sampling technique was used to ensure appropriate representation of the intended audience and relatedness to the study. Survey included all genders aged 18 and above.
The research found that 86% of merchants perceived eCommerce providers with lower business costs, who advertised, promoted their marketplaces, and promoted sales as positively influencing their adoption of eCommerce. Both merchants and online customers preferred market place solutions with higher online security and lower eCommerce risks as these factors promoted trust and influenced uptake of eCommerce. Investigations revealed that 36% of merchants and 41% of customers favorably adopted eCommerce because of “ease of use” and “availability of varieties” on the marketplace platform. Also, older customers (above age 40) were identified to prefer physical stores over online stores.
eCommerce as a significant growth driver, is a focus area for most governments especially because of its impact on small businesses. As a result, this study timely provides insights into areas of relevance for both governments and businesses alike with a clear pathway on how to advance this industry further. Implications of the study were determined and suggestions on areas for further research outlined.