Trading Online Voucher Scheme | Complete Guide
Are you a Irish Business owner looking to grow or expand your digital presence? Then the trading online scheme could possibly save you €1000s.
The Trading Online Voucher (TOV) scheme is a popular incentive for small businesses looking to enhance their online trading presence. The Scheme is funded via Department of Enterprise, Trade & Employment.
The Scheme is primarily aimed at smaller business's and it allows successful applicants to receive a grant of up to €2500!
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The Trading Online Voucher (TOV) is a funding initiative launched by the Local Enterprise Offices (LEOs) under the Irish Government's National Digital Strategy. This strategy aims to boost online sales for small businesses, as e-commerce accounts for an ever-increasing percentage of sales across all industries.
The rapid growth of the .ie namespace, managed by the IE Domain Registry (IEDR), underscores this trend. As of March 2022, there were over 330,000 registered .ie domains, surpassing Irish-owned .com domains and making .ie the preferred extension for new businesses. Around 140 new .ie domains are being registered each working day on average.
The TOV scheme provides financial assistance to help small businesses develop or enhance their online sales capabilities.
- It provides up to €2,500 in funding to small businesses with up to 10 employees to help them trade online, boost sales, and reach new markets.
- Businesses must match the €2,500 voucher amount with their own investment.
- Over 1,250 applications have already been approved as of 2022.
- The average grant amount is €2,300.
- A survey of 800 businesses that received the voucher found:some text
- Over 50% received online orders from outside Ireland
- Over 20% saw total sales growth
- 9 out of 10 businesses got more customer inquiries
- 75% said increased sales were from new customers without impacting existing sales
- Businesses hired an average of 1.4 new employees to keep up with demand
- Majority believed online sales would increase further in the next 6 months
Eligible costs covered by the voucher include website development, e-commerce solutions, online booking/payment systems, digital marketing, online advertising (up to 50%), mobile apps, and training.
By participating in the TOV scheme, small businesses can future-proof their operations, embrace digital transformation, and position themselves for long-term success in the thriving online sales arena. The voucher serves as a valuable resource, empowering companies to capitalise on the vast potential of e-commerce while receiving guidance and support from experienced professionals. The scheme has already helped businesses export, create jobs, and become more sustainable overall.
To be eligible for the Trading Online Voucher Scheme, businesses must meet the following criteria:
- Have 10 or fewer employees
- Have an annual turnover of less than €2 million
- Be trading for at least 6 months
- Have limited or no existing e-commerce presence
The key requirements are being a small business with under 10 staff, relatively low turnover, and having been operational for over 6 months. The voucher is aimed at helping businesses establish an online trading presence if they don't already have one.
Businesses must also be locally trading in Ireland to qualify for this government grant scheme administered through the Local Enterprise Offices.
So in summary, the main eligibility criteria are having 10 or fewer employees, turnover under €2m, trading for at least 6 months, and limited online selling capability currently - targeting small traditional businesses looking to start trading online.
The Trading Online Voucher presents a valuable opportunity for small businesses in Ireland to unlock the immense potential of e-commerce. With online sales continuing to surge, having a robust digital presence is no longer just an option – it's a necessity. Here are the key reasons why your business should consider applying for this powerful initiative:
Tap into the Booming E-Commerce Market
Ireland's online sales market is worth €2.8 billion and growing at a staggering 25% annually. By developing an online sales channel through the TOV, you can capture a share of this lucrative and rapidly expanding revenue stream. In 2024 the Ecommerce market is expected to boom to $9 Billion USD.
Increase Sales and Access
New Markets Studies reveal that 60% of voucher recipients started selling internationally after establishing an online presence. On average, these businesses experienced over 20% growth in total sales.
Attract New Customers and Boost Inquiries
Nearly 9 out of 10 businesses reported an influx of new customer inquiries after going online, with 3 out of 4 stating that these new online sales were additional and did not disrupt existing sales channels.
Facilitate Business Growth and Job Creation
The surge in online sales facilitated by the voucher often necessitated hiring more employees, with businesses adding an average of 1.4 new hires to keep up with increased demand.
Cost Savings on Online Presence Development
The voucher covers up to 50% of eligible costs associated with developing an online sales channel, including website development, online marketing, and e-commerce consultancy fees.
By leveraging the Trading Online Voucher, your business can capitalise on the booming e-commerce market in Ireland while benefiting from valuable financial support and training. This initiative empowers you to future-proof your operations, reach new heights of success, and thrive in the digital era.
The Trading Online Voucher (TOV) Scheme has several important terms and conditions that businesses should be aware of before applying:
Maximum Voucher Value
- The voucher has a maximum value of €2,500 or 50% of eligible expenditure (excluding VAT), whichever is lower. ** Some websites are claiming that the voucher covers up to 90%, but this contradicts what has formally said by the Local Enterprise Office.
"It offers financial assistance of up to €2,500 with co-funding of 50% from the business along with training and advice to help your business trade online. Cutting the cost of developing your online trading capacity by up to 50% can make this investment very affordable for many small businesses out there."
Local Enterprise Office
Approval Required Before Spending
- You must get your TOV application approved by the Local Enterprise Office before incurring any expenses related to the project.
Eligible Costs
- Only third-party costs from external suppliers/vendors are eligible.
- Internal labor costs within the applicant business cannot be covered.
- All third-party invoices must include proper tax and business registration details.
Eligibility Criteria
To qualify for the TOV Scheme, a business must meet ALL of the following requirements:
- Have a limited existing online presence (e.g. no e-commerce website)
- Have less than 10 employees
- Have an annual turnover under €2 million
- Have been trading for at least 6 months
- Be located within the catchment area of a participating Local Enterprise Office
The scheme cannot provide vouchers for:
- Charities, semi-state companies, trade associations
- Non-profit/social entrepreneurship projects
- IT companies or agencies
- Conferences and seminars
- Projects violating public policy
- Duplicating support from other agencies
- Companies with over 10 employees
- Projects viable without scheme assistance
- Import/distribution projects
Vouchers can be used to cover costs related to:
- IT/digital consulting
- E-commerce website development/upgrades
- Online payment/booking systems
- Relevant software subscriptions
- Online advertising (up to 30% of voucher)
- App development
- Digital marketing strategy creation/implementation
- Training for online trading activities
There is currently no expiry date for the TOV scheme, but it can be discontinued at any time, so businesses are advised to apply as soon as possible. Following these terms and conditions is crucial for a successful application.
Is funding available for e-commerce integration?
Yes the scheme is primarily for companies who currently have or want ecommerce intergration.
What percentage of the project cost does the voucher cover?
The voucher typically covers 50% of the approved project cost, up to a specified maximum amount.
How do I apply for a Trading Online Voucher?
You can apply using the application form at the bottom of this page , or visit your Local Enterprise Office.
What documents are required to apply for the voucher?
Common required documents include proof of business registration, financial statements, project proposals, and quotes from service providers.
Can the voucher be used more than once?
Yes you can apply for the voucher a second time , even if you have been previously accepted.
No there is currently no dead line or expiration on TOV applications.
How long does the approval process take?
In some cases, the approval process can be relatively quick, taking a few days to a week. However, it can also take longer, especially if there are issues with the information provided in the account application or if additional documentation is required.
Can the voucher cover marketing and social media expenses?
You can use the Trading Online Voucher for IT, digital marketing, or digital strategy consultation, as well as the development or upgrade of an ecommerce website.
Is there a minimum investment required to qualify for the voucher?
The voucher is set at a maximum of €2500 or 50% of the project which ever is lesser,
Can I use multiple vouchers for different projects?
In Most Cases the voucher can only be used for one specific project , with one provider.
What happens if my project exceeds the voucher amount?
If the project cost exceeds the voucher amount, the business is responsible for paying the remaining balance out-of-pocket.
Can the voucher be combined with other grants or funding options?
Policies vary, but in some cases, the voucher can be combined with other grants or funding sources for the same project.
Who do I contact for support or questions about the application process?
Your Local Enterprise office (LEO). You can find a full list of all the offices and their respective contact details below.
Bernie Murphy TOV Case Study
Bernie Murphy, a designer from Buncrana, creates handmade headbands, garments, and accessories using locally sourced Donegal Tweed. After being made redundant in 2006, she pursued a degree in Textile Art and launched her business in 2017.
During the COVID-19 lockdown, with retailers closed, customers started buying directly from Bernie's website, sustaining her business. Now, 60-70% of her sales come through her e-commerce site, with buyers from countries like Finland, Germany, the US, and El Salvador.
To enhance her online presence, Bernie secured a Trading Online Voucher from the Local Enterprise Office Donegal, allowing her to upgrade her e-commerce website and reach new markets globally.
Michael Tunney, Head of Enterprise Donegal, highlights the increased demand for the Trading Online Voucher Scheme during the pandemic, with over 800 Donegal businesses benefiting from it. The scheme has awarded close to €1.8 million to help businesses develop e-commerce capabilities and reach new markets.
Grace Korbel, Business Advisor at Local Enterprise Office Donegal, emphasises the importance of the vouchers in enabling businesses like Bernie's to take advantage of the digital transformation and expand their online sales.
Rí na Mara Trading Online Voucher Case Study
Rí na Mara Trading Online Voucher Case Study
- Carlow
- Cavan
- Clare
- Cork City
- Cork North & West
- Donegal
- Dublin City
- Dún Laoghaire-Rathdown
- Fingal
- Galway City
- Galway County
- Kerry
- Kildare
- Kilkenny
- Laois
- Leitrim
- Limerick City & County
- Longford
- Louth
- Mayo
- Meath
- Monaghan
- Offaly
- Roscommon
- Sligo
- South Dublin
- Tipperary
- Waterford
- Wexford
- Wicklow
Trading Online Voucher Partner
By partnering with a digital marketing agency, you can maximise the impact of your Trading Online Voucher and achieve your business objectives more effectively in the digital realm.
A reputable agency can provide invaluable guidance and expertise to help you navigate the complexities of building a robust online presence. From developing a visually stunning and user-friendly e-commerce website to implementing effective digital marketing strategies, an agency can streamline the entire process, ensuring that your investment yields maximum returns.
You can visit bubblehub.ie to explore the wide range of services we offer. Our team of experts specialises in giving brands an unfair advantage in the digital marketing world. We are a full-service agency offering bespoke web design and development, digital marketing, app development, video production, branding, and more.
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