Calls for expansion of Trading Online Voucher Scheme

Digital Business Ireland (DBI) has called for the Trading Online Voucher Scheme to be expanded in order to facilitate the growth of Ireland’s e-commerce sector.

The organisation, which is the industry body for digital, e-commerce and online businesses, believes expanding the scheme will allow those businesses that didn’t previously avail of funding to do so for digital marketing purposes and establishing consumer trust.

Funded by the Department of Enterprise, Trade and Employment (DETE), the Trading Online Voucher Scheme is aimed at helping SMEs, including sole traders, to trade online. It was expanded early in the pandemic, with many hair and beauty salons using it to assist them to move their business online during the lockdowns.

In its current form, applicants for the Trading Online Voucher Scheme are only eligible if they have little to no online presence. The Local Enterprise Offices (LEOs ) scheme currently allows businesses to develop their digital footprint, through the establishment of a website, with grants of up to €2,500.

DBI and .IE’s most recent Tipping Point Survey 2022, which surveyed 500 retail and consumer-facing professional services SMEs,  noted that many SMEs see their websites as crucial for generating sales, with over half of the respondents looking to significantly expand their online presence within the next five years.

However, according to DBI, the growth of Ireland’s digital commerce sector faces heavy competition from international retailers as some consumers view them as more competitive on price and product range.

Another issue facing Irish online retailers is trust, with many consumers citing cybersecurity as a key concern in survey. DBI believes that allowing trust products, such as online reviews technology, to be included within the remit of an expanded Trading Online Voucher Scheme would allow consumers to trust and purchase from online Irish SMEs, rather than losing out to international web stores.

“The Government’s National Digital Strategy must develop with the needs and requirements of businesses that have already made the transition to online, and who are now looking to expand their reach through the use of digital marketing tools, or investment in trust technology to make their offer to its target segment more competitive in the international market,” said chair of DBI Ashley McDonnell.

“By increasing opportunities for e-tailers in Ireland to reach new consumers, this will have wide-reaching benefits for the Exchequer. At DBI we firmly believe that an expansion of the remit of the scheme should be seriously considered, in order to enable and empower businesses to thrive in the digital marketplace.”