Rapid Growth of Online U.S. Small Businesses Post-COVID-19

• September-21-2023 12:15:57

The COVID-19 pandemic reshaped the business landscape, prompting a rapid shift toward digitalization. Small businesses in the U.S. faced unprecedented challenges during the crisis, but they also seized opportunities in the online realm. In this blog, we delve into statistical insights highlighting the remarkable growth of online U.S. small businesses in the post-COVID-19 era.

Growth in E-Commerce Sales:

The U.S. Department of Commerce outlines that 2020 e-commerce revenues would increase by 32.4% yearly. Small businesses swiftly adapted to the digital marketplace to fulfill this high demand as consumers stayed home and preferred online purchasing.

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Increase in Online Business Formation:

The U.S. Census Bureau reported a surge in online business formation during the pandemic. In the first quarter of 2021, applications for Employer Identification Numbers (EINs) reached a record 1.1 million, signifying a surge in new small businesses exploring digital opportunities.

Elevated Digital Ad Spending:

Digital advertising became a vital conduit for small enterprises to reach customers during the epidemic. According to eMarketer's research, organizations will prioritize focused online campaigns to spur growth, with digital ad expenditure in the U.S. expected to rise by 12.7% in 2020.

A Mobile Shopping Trend:

Mobile devices played a critical role in boosting sales as customers embraced online shopping. According to Statista, mobile-friendly websites and apps are becoming increasingly crucial to the profitability of small businesses in the United States. In 2020, mobile e-commerce sales in the country will surpass $400 billion.

Embracing Social Media Commerce:

Social media business increased significantly during the pandemic. Facebook and Instagram were used by small businesses to increase online sales. 57% of American consumers bought purchases via social media during the pandemic, according to a Smartly.io poll.

Digital Payments and Contactless Transactions:

The fear of virus transmission prompted a tide in contactless payments. Small businesses adopted digital payment methods to accommodate customer preferences for safe and convenient transactions. Reports indicated a 150% increase in mobile wallet usage during the pandemic.

Expansion of Online Marketplaces:

Online marketplaces saw a tremendous increase in sellers and buyers during the pandemic. E-commerce giants like Amazon, Etsy, and eBay witnessed a surge in small businesses setting up shops on their platforms, offering unparalleled exposure and access to a vast customer base.

Conclusion:

The landscape of small enterprises in the U.S. saw a tremendous transition in the post-COVID-19 era. The data speaks for itself, demonstrating how online channels have become essential lifelines for development and survival. The exponential growth of mobile purchasing, higher digital ad spending, and e-commerce sales show the unmistakable influence of online platforms. To succeed in the new regular, small firms in the United States demonstrated resilience and adaptation by embracing digital tools and technologies. Small businesses' digital evolution will continue to influence how commerce develops in the future, offering previously unheard-of prospects for expansion and success in the rapidly growing digital market.