The second annual Small Business Internet Survey was conducted by Gallup for online business directory site Superpages.com. Over 800 businesses with less than 50 employees were polled.

The survey found that 21 per cent of small businesses had established a website this year as a shop window, while only 13 per cent had set up a sales mechanism. This compared with eight and 13 per cent, respectively, in the previous year.

"Research indicates that many consumers use the internet to window shop - to research and browse before they buy from local merchants," said Patrick Marshall, group vice president of Superpages' parent company Verizon Information Services. "While transactional ecommerce may not be right for all small businesses, even the most local business can benefit from establishing a website to promote its products and services." Return on investment was also rated highly: 55 per cent of small businesses with a website reported that it had either broken even or paid for itself in increased business.

A new report from retail analysts Verdict Research reveals the fastest rate of growth in the online sector since the busting of the dotcom bubble in 2001.

Online retail spending in the UK in 2006 grew by 33.4 per cent to a record £10.9bn, excluding spending on services such as flights, tickets and insurance and business expenditure. This is almost 13 times faster than the retail sector overall.The figures mean that over £1 of every extra £3 spent on retail in 2006 in the UK was claimed by an online retailer.

Verdict's e-Retail 2007 report sees no reasons for an end to the boom and expects online sales to almost triple to £28bn in 2011, equivalent to 8.9 per cent of all retail spending. Of the 3,000 consumers surveyed for the report, two-thirds have broadband access and shop online more frequently because as a result.
By 2011 the typical spend of an online shopper will grow to £1,056 a year, up from £606 last year. The 'clothing and footwear', 'DIY and gardening' and 'food and grocery' sectors are achieving the fastest growth.
Ian Williams, vnunet.com 29 May 2007

Britons have spent more than £100bn online since 1995, according to online retail research group IMRG.

Online sales for April(2007) rose 55 per cent, the largest rise since December 2003 when Christmas shopping sent sales soaring.
Travel is still the most popular category for online spending, accounting for £7bn of all spending last year, but sales of electrical goods, clothing and groceries are rising rapidly.
Retailers that embraced online sales early are reaping the benefits; Tesco is now the UK’s fourth largest internet retailer, with Tesco.com processing almost £1bn of grocery sales and generating profits of £56m.
Only Amazon, Dell and Argos rank higher, with Argos easily transferring its catalogue shopping online to cash in on the boom.
And John Lewis Direct is reporting good growth in the first quarter of the year, says head of web selling David Walmsley, with a 45 per cent increase in online sales.
Others are catching up, with Sainsbury’s announcing last week that online sales have increased more than 40 per cent and plans to double the number of stores offering online services from 100 to 200.
Dave Friedlos, Computing 18 May 2007

Britons have spent more than £100bn online since 1995, according to online retail research group IMRG.

Online sales for April(2007) rose 55 per cent, the largest rise since December 2003 when Christmas shopping sent sales soaring.
Travel is still the most popular category for online spending, accounting for £7bn of all spending last year, but sales of electrical goods, clothing and groceries are rising rapidly.
Retailers that embraced online sales early are reaping the benefits; Tesco is now the UK’s fourth largest internet retailer, with Tesco.com processing almost £1bn of grocery sales and generating profits of £56m.
Only Amazon, Dell and Argos rank higher, with Argos easily transferring its catalogue shopping online to cash in on the boom.
And John Lewis Direct is reporting good growth in the first quarter of the year, says head of web selling David Walmsley, with a 45 per cent increase in online sales.
Others are catching up, with Sainsbury’s announcing last week that online sales have increased more than 40 per cent and plans to double the number of stores offering online services from 100 to 200.
Dave Friedlos, Computing 18 May 2007