Small Businesses Struggle to Cash In on Cyber Monday

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DES MOINES, Iowa -- The National Retail Federation expects 127 million shoppers will shop online for Cyber Monday. With more people looking to the web for deals, more small businesses have websites, but most do not actually sell items online.

The reason retailers say is that it’s too much of a risk and hassle, which is why most successful stores start with physical locations first.

The store RAYGUN, took a non-traditional approach by offering items online first. Owner Mike Draper says one of the risks of doing this is not being able to give a consistent product to their customers. You can run out of items, putting things on back order which can hurt a business’s reputation.

Even though Draper says his online sales increase by about 70 percent on Cyber Monday he says most small businesses can’t afford to offer their items online. “People think it’s going to be a lot easier to start a website when really you’re only saving a little bit on rent, but you still need anything from the design to the maintenance, to the photography, to filling orders, all that stuff takes people,” said Draper.

Draper says Cyber Monday will likely continue to be a big day for big businesses which can offer more options and deals because they have the resources to handle the increase in traffic. This is another reason small businesses in general do not tend to offer big deals on these holidays.

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