Digital Sales Give Small Businesses a Map for Growth

Digital sales channels have given small and medium-sized businesses a significant growth advantage in 2025, according to a PYMNTS Intelligence report. SMBs that relied on digital sales were 14 percentage points more likely to increase revenue compared to those that relied primarily on physical stores. The report found that digital channels accounted for 57% of SMB sales on average, while physical channels made up 41%.

The strongest results occurred when businesses combined digital channels with customer tracking, as these companies saw an average revenue growth of 9.5%, more than double the 4.7% increase in nominal GDP. The survey of 526 SMB owners and senior executives revealed that digital-led businesses were more likely to grow revenue (56%) compared to hybrid businesses (51%) and those reliant on physical stores (42%).

The data suggest that digital channels can act as an "extra storefront," allowing companies to expand their market reach without adding physical locations. Additionally, 70% of SMBs began with at least one digital sales channel, indicating that many founders now view digital platforms as an integral part of their opening strategy.

The report highlights the importance of customer tracking, with 58% of businesses that had formal tracking mechanisms growing revenue, compared to only 22% of those without tracking. This suggests that digital data can empower owners to allocate marketing funds more effectively and capitalize on successful channels. While digital access alone does not guarantee stronger performance, it provides businesses with more opportunities to sell, learn, and adjust their strategies.

The findings also indicate that digital channels can help SMBs make more precise marketing decisions, allocate resources efficiently, and build upon their existing revenue-generating channels.