35% of Small Businesses Would Not Have Survived the Pandemic without Ecommerce

35% of Small Businesses Would Not Have Survived the Pandemic without Ecommerce

October 12, 2020         Written By Heaven Speirs

Nearly every business have been impacted by the coronavirus pandemic, but small businesses have taken a particularly hard blow this year. The Small Business Association provided $20 billion in Economic Injury Disaster Loans (EIDLs) to over 30.5 million small business owners in the United States.

Chase Ink conducted a study to see how small businesses have fared throughout the pandemic. Ecommerce proved to be the saving grace, with many small businesses transforming their business models to conform to changing shopping standards.

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1 in 3 Small Businesses Would Not Have Survived without Ecommerce

According to the Chase Ink study, 35% of small businesses say they would have closed during the pandemic without ecommerce. This year, 19% of small businesses began selling products and services online for the first time, and 44% of online merchants saw an increase in sales during 2020. On average, ecommerce businesses have seen a 37% uptick in online sales from 2019 to 2020.

Entrepreneurs had to think fast to cope with the sudden changes that COVID-19 brought out. However, this might be a blessing in disguise. Nearly two-thirds (64%) of small business owners who made changes this year say they will maintain those changes next year.

Business Owners Shift to Digital Marketing

Not surprisingly, the pandemic has also pushed many businesses to boost their online advertising efforts. Nearly half of small business owners say that social media has taken on a more significant role in their marketing this year, and two-thirds of small businesses started using digital advertising for the first time in 2020. Among the businesses that chose to boost their digital marketing efforts, 52% have seen an uptick in customers, and 39% have seen an increase in leads.

How to Protect Your Small Business through the End of the Year

The effects of the pandemic may linger for some time. Small businesses will need to remain innovative to keep up in this unpredictable time. Here are some tips to protect your small business through the end of 2020:

  • Use business credit wisely. If you have a business credit card, only spend what you can realistically pay back. You can use it for emergency funding, but make sure it is truly an emergency. Otherwise, you’ll be struggling to recover in 2021.
  • Ask for a lower interest rate. A staggering 81% of credit cardholders received a lower APR just by contacting their card issuer. Don’t be afraid to make the request, especially during this time of uncertainty. Your card provider may also be willing to waive interest for a few months or temporarily lower your minimum payments to help you through the end of the year.
  • Get feedback from your customers. What would they love to see from your business? What services could you provide that you don’t offer already? It may not take much effort to open a whole new line of income for your business.
  • Offer gift cards or certificates, if possible. This gives you income now to get through months with low traffic. It’s a great time of year for this because gift cards and certificates are one of the most frequently-purchased gifts during the holidays.
  • Support other small businesses. Before you go to make a personal purchase or business-related purchase, think about small businesses in the area that could also use the income. If you can make transactions with a local business instead of a national retailer, the money will be kept within your community.

The information contained within this article was accurate as of October 12, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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heaven

About Heaven Speirs

Heaven Speirs is a contributing writer for LowCards.com. She remains up-to-date with the latest developments in the credit card industry and the financial sector as a whole. Heaven has over 10 years of experience in online journalism, the bulk of which has been focused on personal finance. Heaven attended Oklahoma State University, where she discovered her talent for research and content creation. In her spare time, Heaven enjoys painting, playing poker, and spending time with her husband and three dogs.