Almost 40 per cent of SMEs not online as Amazon heads Down Under

A staff member collects merchandise for customers' orders from shelves at the newly-opened Amazon Prime Now facility in Singapore. Photo / AP

Small and medium Kiwi businesses risk being left behind in the global retail race says a senior Spark executive.

The chief executive of Spark Home, Mobile and Business Jason Paris said these companies needed to adapt faster to compete.

"Ecommerce capabilities futureproof our SMEs to take on global competitors in the New Zealand market," Paris said.

Data from Spark Lab showed in 2014 just 30 per cent of these companies were selling online.

This figure had more than doubled to 61 per cent this year, however the 40 per cent of companies that weren't selling online may struggle against the likes of Amazon, Paris said.

"The data shows that many SMEs are being complacent when it comes to getting online and Spark's concern is the impact this will have on Kiwi businesses when the likes of Amazon.com arrive on our shores," he said.

The data collected from 7,000 SMEs also showed 18 per cent did not have a website and 44 per cent of business owners spent less than an hour a week on social media platforms.

"Statistics like these are shocking when we think about how much better businesses perform when they embrace digital technology," Paris said.

"There is a lot of wasted opportunity for SME growth which, given the huge amount SMEs contribute to the economy, translates to lost opportunity for New Zealand."

According to a Deloitte report, The Digital Divide, digital influence now drove decision making in more than 70 per cent of all transactions.

Many Kiwi retailers were struggling because their online presence was lacking and they were not in the consideration of consumers, First Retail managing director Chris Wilkinson said this week.

This was primarily why retailers were suffering with overseas businesses gaining search priority. It was increasingly important as online sales continued to grow, he said.