As the number of small businesses continues to grow over the next five years, they will be spending more money online, new research shows.
In a new report, “U.S. Online Small Business Market Category Forecast, 2007 to 2012,” New York-based JupiterResearch projects that total online spending by small businesses will exceed $70 billion by 2012, up from $47 billion in 2006.
According to the report, an increase in the number of small businesses overall, rather than an increase in buyers among existing companies, will drive most of the growth in online spending.
The report also says that major retail chains will continue to promote the online channel over others because it provides them with better margins.
As a result, small businesses are likely to provide online retailers with a greater portion of their business in the future.
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