Firms 'should encourage online interaction'

Small businesses can use interactive websites to ensure their online presence retains a personal feel, an expert has commented.

Adam Wayland, editor of advice website smallbusiness.co.uk, said some people believe companies which only exist online hide behind their web presence.

However, he suggested internet-based firms should use forums and encourage visitors to contact them in order to prevent their online presence from appearing impersonal.

Basing a business on the internet can lower overheads and showcase services or products to a "much wider market", Mr Wayland continued.

"You're open to a broader group of customers than you would be relying on people walking down one high street," he explained.

A study conducted by price comparison website uSwitch.com claimed that British shoppers will spend around £162 billion a year via the internet by 2020.

It reported that in 2002, online sales accounted for just two per cent of consumer spending, predicting that by the end of 2007 this figure could rise to 16 per cent - equating to spending of £40 billion.