SME online retailers in the UK are diversifying sales by combining their own website with marketplaces and often physical stores, according to new research by Royal Mail.
Unsurprisingly, 75% of British SMEs selling online have their own website but almost six in ten (58%) also sell their products through an online marketplace, a study commissioned by Royal Mail found.
However, nearly half (47%) of UK SME online retailers also have a physical store as well as a presence online. For those that sell in a physical store, 80% say it is their own store but 33% sell in another retailer’s store. Other popular sales methods for these retailers include tele-sales, catalogues and exhibitions.
Undeterred by Brexit and the weak British economy, SME online retailers in the UK appear fairly optimistic about prospects for this year. Over half (56%) are planning to sell through new or additional channels in 2019, the Royal Mail study found. This will be through other physical stores (41%), listing on additional marketplaces (39%) and via exhibitions or trade fairs (27%).
International business is clearly very important for SME online retailers in the UK, the study showed. Just over half (52%) both export and import goods, while 19% import only and 16% focus on exports. A mere 12% sell only to customers in the UK.
Over eight in ten (81%) of those that sell internationally target Europe, 42% sell to the USA and 29% to Canada. In addition, Asia (27%) and Australasia (23%) are common destinations to target.
A Royal Mail spokesperson commented: “Entrepreneurial UK SME online retailers are increasingly turning to online marketplaces to sell their products. The rise of online marketplaces is impacting the way consumers shop online and how retailers sell to their customers but the physical store still has a role to play.
“As the ecommerce sector becomes increasingly global, UK SME online retailers should look at opportunities to expand the international side of their business. At Royal Mail, we already support many retail businesses in their overseas expansion and we look forward to working with even more of them in the future”.
