UK and Irish internet businesses are defying the economic downturn and flying the flag for Britain on the international stage, according to the e-business benchmark report from payment processor, Sage Pay.

Now in its second year, Sage Pay’s annual survey of over 1,000 UK and Ireland based internet businesses found the industry is in rude health with respondents reporting on average 49 per cent growth in online sales over the past year. The report also found, however, a reluctance among respondents to engage with their customers via the mobile channel.

The Sage Pay report found that 57 per cent of e-tailers are taking advantage of the weak pound and relative maturity of the UK and Irish eCommerce market by expanding into international territories. While European countries, including France, Germany and Spain remain the most popular destinations for business expansion, Britain’s e-exporters are finding success across the world, notably in China, where nearly one in five respondents said they now have a presence.

Among the stand-out findings from the report is the huge jump in social media usage by e-tailers over the past year. 76 per cent of the e-tailers surveyed are now using Twitter to communicate with customers, double the number using the channel in 2010. Sage Pay also found that 76 per cent of e-tailers now have their own Facebook page, an increase of 18 percentage points from last year’s report.

But while smartphone use has exploded in 2011, Sage Pay found adoption of mobile technologies remains in its infancy among e-tailers, particularly in terms of app development. While 30 per cent of e-tailers claimed a mobile app was part of their long-term plans, only 5 per cent of respondents had already developed an app for their business, and 27 per cent did not think having an app would be relevant for their business.

“What we are seeing this year is a huge amount of interest and a certain degree of hype around mobile commerce,” says Sage Pay managing director, Simon Black. “As the government talks about rebalancing the economy, it could do a lot worse than look at the vibrancy and dynamism of the e-commerce sector. Competition is healthy, yet fierce and as our report shows, e-tailers are rising to the challenge by embracing new technologies, expanding into new markets and innovating with new channels to entice and excite customers.” (But not so much with mobile, it appears – Ed.)

The Sage Pay e-business benchmark report is designed to offer a comprehensive insight into the latest trends techniques and behaviours that are delivering success for the UK’s e-commerce businesses. The report is based on a survey of 1,000 UK e-businesses of all sizes and types which was conducted between May and June 2011. You can register for a copy of the report here.