Australian small businesses that sell their goods and services online were 33 per cent more likely to have increased their profits in 2011/12, according to a report from American Express.

American Express head of marketing and customer engagement, small business services, Amelia Zaina, said small business owners who have incorporated e-commerce into their business regarded it as a worthwhile investment with long-term benefits.

The report found about one in three small businesses were offering their products for sale online.

Apart from their company websites, respondents also cited the importance of social media in getting 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," Ms Zaina said.

"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."