Small- and medium-sized online retailers in the UK expect higher sales in 2013 as e-commercecontinues to grow despite the weak economy and tough competition, a new Royal Mail survey has
found.Just over half of SME online retailers saw an increase in sales in 2012 and two-thirds areconfident that sales will increase this year. At the same time, 70% believe competition is moreintense than two years ago, according to the survey of 441 firms conducted by researchers Brass onbehalf of Royal Mail.
The rise in people using Smartphones and tablets to buy goods increasingly means shoppers areusing retailers they know and not shopping around, one third (31%) of online retailers said.
To respond to the challenge of the changing ways people shop online, 35% of SME online retailersare planning to develop mobile apps in 2013 while 10% said they have already developed them.
Almost six in ten online retailers (56%) said the increase in the number of websites sellinggoods was fuelling increased competition for sales. Half of those surveyed said customers are moreprice-sensitive and 41% said the rise in price promotions mean shoppers seek out the best pricesthe majority of the time.
The study further revealed that 57% of SME online retailers said attracting new customers isamong their biggest challenges to increasing sales in 2013. Other key challenges are pricing goodscompetitively (49%) and building customer loyalty to drive repeat purchases from existing customers(36%).
To respond to the challenges, priorities for SME online retailers in 2013 will be increasingcustomer satisfaction by improving the range and quality of products they sell, pricing morecompetitively and focussing on improved delivery and returns processes.
Nick Landon, Managing Director of Royal Mail Parcels, commented: “Our study shows that onlineretailers are responding to the needs of shoppers to grow sales in an increasingly competitivemarketplace.”
