A report from American Express said Australian small businesses that sold their goods and services online were 33 per cent more likely to have seen their profits rise profits in 2011-12.
According to American Express head of marketing and customer engagement, small business services, Amelia Zaina, small business owners who had incorporated e-commerce into their business regarded it as a worthwhile investment with long-term benefits.
The report found products were being offered online in one in three small businesses.
In addition to company websites, respondents also cited the importance of social media in gaining new customers, raising brand awareness and generating new sales.
"These findings support the notion that small businesses who have gone online and are using social media, are seeing comparatively stronger revenue growth," Zaina said in a statement.
"While different channels work better for different industries, both e-commerce and social media can be innovative and affordable. Businesses can benefit in many ways to offset the impact of tough economic times on their business."