Small business online profitability barriers

In the United States, about 36% of adults have turned websites to procure clothing, accessories, shoes and services (Suki, Ramayah, & Suki, 2008). Fox (2008), Wong (2007), and Xu, Rohatgi, and Duan (2007) wrote that the online businesses expanded faster than all economic activities, especially manufacturing, merchant wholesaling, retailing, and selected service industries. Wong (2007) concluded that the transformation in each sector from traditional business to e-supported shipments, sales, and revenues was a gradual one (Wong, 2007).Many online-business owners lack the proficiency and strategic vision to excel in online marketing and business engagements (JE-commerce Slows Again, 2008; Fox, 2008;Wong, 2007; Xu et al., 2007). Aziz and Poorsartep (2009) and DotCom Boom (2005) stated that the owners of DotCom companies lacked business and marketing strategic skills. Aziz and Poorsartep found that online businesses overspent on information technology and marketing in the hope of maximizing profitability. For example, in 1999,Furniture.com generated revenue of only $10.9 million, but spent $33.9 million on sales and marketing.