Over 2.5 Million California Small Businesses Sell Online

July 2023

New Research: Online Product Sales Drive Nearly $300 Billion in Annual Revenue for California-Based Small and Medium-Sized Businesses

Digital sales methods, such as web-based stores, online marketplaces, and social media “click to buy” direct sales, are an increasingly popular and important mechanism for small and medium-sized businesses (“SMBs”) to sell physical goods. These methods connect SMBs to customers around the world, drive sales, and provide growth opportunities and a competitive advantage in the marketplace. The Connected Commerce Council (3C) conducted research to measure how prevalent online sales are for California-based SMB physical goods sellers, and the contributions these online platforms and tools make to the businesses themselves and the California economy. Our top findings are: 

  • Approximately 2.54 million California SMBs (or 60% of all CA SMBs) sell products online through web-based stores, online marketplaces, and social media “click to buy” direct sales.
  • 99% of SMBs that sell online say digital technologies are important to how they sell products.
  • Last year, California SMB online product sellers had an estimated $457 billion in total revenue, with approximately $297 billion (65%) from online sales alone.

Over 2.5 Million California Small Businesses Sell Online

Data Catalyst Institute

July 2023

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