Internet spending by small businesses in the United States is estimated to pass $70 billion by 2012, up from $47 billion in 2006, according to JupiterResearch's "US Online Small Business Market Category Forecast, 2007 to 2012" report.

The number of small businesses that buy online will grow at a compound annual growth rate of 4.3% through 2012. Jupiter said overall small business growth would drive online buying.

"While technology manufacturers are reluctant to push the online channel over others, retailers will continue to promote the online channel as it provides them better margins," said Sonal Gandhi, a JupiterResearch analyst and the lead author of the report, in the article.

"Growing competition among online retailers for small business spending will in turn put pressure on them to offer promotions and incentives leading to higher conversion online," Ms. Gandhi said.