SME online retailers to target growth through increased use of online marketplace sites in 2015
A new study has found that UK SME online retailers are planning to increase their use of online marketplace sites such as eBay and Amazon Marketplace to help them grow in 2015.
Royal Mail’s annual tracker study into the expectations and challenges facing UK SME online retailers also shows that seven in ten businesses are expecting sales to increase in 2015.
The optimism for growth – which is up nine percentage points on last year – comes despite 76% of SME online retailers saying that competition is more intense than a year ago.
The study found that 63% of UK SME online retailers are planning to increase the number of channels they trade through in 2015 to grow sales. While one in four e-retailers polled said they plan to start using online marketplaces to grow sales, a further 21% plan to open a shop and one in six are planning to take space in a store to sell their goods.
Never Miss a Retail Update!In addition, some 58% of the UK SME online retailers surveyed reported an increase in sales in 2014, up from the 49% who reported growth in 2013.
The study found that UK SME online retailers are increasingly recognising the importance of providing a good returns process for online shoppers. A third of retailers surveyed said a simple returns process was a key factor to customer satisfaction last year, up from 23% in 2013. Meanwhile, 27% of UK SME online retailers will be simplifying the returns process in 2015 to increase customer satisfaction. This is up from 11% last year.
While 51% of the retailers polled said they will be increasing the range of goods to boost customer satisfaction in 2015, 41% said they will be improving the range of delivery options compared to 21% in 2014. Meanwhile, some 32% said they will be introducing more competitive pricing.
Nick Landon, managing director of Royal Mail Parcels, said: “Royal Mail’s annual tracker study of UK SME online retailers shows that there is strong optimism for growth despite increasing competition.
“UK SME online retailers are thinking carefully about how they can develop their businesses during 2015, with one in four looking to expand to online marketplaces, such as eBay and Amazon Marketplace. Simplifying the returns process for customers is also a key area of focus for many online retailers in the year ahead.”
