The latest figures from the Central Statistics Office (CSO) show that half of 16 to 74 year olds bought goods over the internet in 2014.

"We know that consumers are now online, and we know that SMEs are not tapping into it. They're losing a huge proportion of sales to both foreign multinationals and foreign SMEs. That's a real shame. It's a missed opportunity. The web could be their 24/7 salesman and they could be taking orders when they sleep," says Curtin.

Research by UPC has shown that Irish consumers are spending €6 billion online annually, with over 60pc of sales going to businesses abroad. E-commerce also opens Irish SMEs up to a global market, says Curtin.

"The internet and e-commerce on transactional websites allow small businesses to engage with their customers abroad. Obviously if they have .ie they are saying they are Irish, from Ireland and connected to Ireland. That can be a very positive message when they're selling," he adds.

Despite the obvious benefits, less than a quarter (23pc) of small businesses and 43pc of medium-sized businesses had e-commerce sales in 2014. This compares with around half (49pc) of large enterprises with e-commerce sales.

And larger firms are better at promoting their e-commerce sites, with 44pc of total sales of large enterprises done through their site. This compares with just 15pc of small enterprise sales and 20pc of medium-sized businesses.

PURCHASING

Ironically, small and medium-sized businesses have no problem purchasing goods online, with 54pc of medium-sized firms and 45pc of small enterprises making e-commerce purchases in 2014.

"SMEs are consumers online so they're booking flights, buying from Apple or buying Christmas presents online but not selling online. It's not that they are digital luddites, it's more that they don't translate the benefits of having a sales/transactional tool of their own."

Curtin puts the reticence to set up websites down to a number of factors.

"There have been lots of surveys, which show business owners feel it's very techy and complex to move online, that it costs too much money, that they don't have enough time, and that there isn't a one-stop-shop to get all the elements they need together easily to set up the site."

Curtin acknowledges that e-commerce websites are a big investment, but argues that adding a salesperson to the team is more expensive.

"So many SMEs are put off by the 'problems' of getting the wonderful website that they don't even take the first step. They don't even have the picture postcard website, and that's a tragedy because if they don't take that baby step first they'll never graduate to the e-commerce website."

SOCIAL MEDIA

SMEs are quicker to set up a social media presence, however. The CSO stats show that in 2014, six in 10 Irish businesses used some type of social media, whether that was Twitter, Facebook or YouTube. Ireland ranks second among the EU-28 countries for its enterprises using social media.

"For some small businesses, social media is the first step to engaging with their customers. It's better than nothing but they should be looking to transfer that online presence to their own website, where they can show their products and services, take orders and, most importantly, collect money."

IEDR has set up the Optimise e-commerce website development programme to allow Irish SMEs to progress to taking orders online. This is the fifth year of the programme, which has already provided 60 SME owners with consultation, training and e-commerce development support. In 2015, 15 new businesses will benefit from the programme, and for the first time it is also open to those firms that have been offline to date.

"Rather than cheerlead from the sidelines we wanted to put a programme together where we could sit with them shoulder to shoulder and help them to do something tangible. We have two service providers who sit down with the winners and put together what they want, and by the time their work with Optimise is over, the business owners have very tangible improvements to their online presence."

To make the next shift to an actual online presence, firms need bigger impetus, says Curtin.

In 2014, the Government launched a national trading online voucher scheme, which in conjunction with Enterprise Ireland and local enterprise offices aims to get 2,000 small businesses trading online by the end of 2015.

"We'd love to see lots of other Optimise-type programmes introduced by large companies. I'd like to make a plea to the policy makers to recognise that SMEs need help. They already have a lot of encouragement and cheerleading, what they really need is practical help," says Curtin.

And once SMEs have the all-important website, Curtin says there is one thing they must do: promote it.

"It's a bugbear I have when I see tradesmen driving around with only a generic email address on their van. What a waste of an opportunity to tell the locals who you are. Make sure your website is on your vehicle, in advertisements and on your business card so your customers and potential customers can reach you."

The application process for IEDR's 2015 OPTIMISE Fund started on 2 March. For more information visit www.iedr.ie/optimise or follow @IEDR_dot_ie on Twitter for updates.

Source: http://www.independent.ie/business/small-business/open-all-hours-smes-ignore-ecommerce-at-their-peril-31027090.html