British small and medium-sized (SME) online retailers are looking optimistically at 2015 andplan to increase their use of online marketplaces, such as eBay and Amazon, to boost their growth,
according to Royal Mail’s annual tracker study into the expectations and challenges facinge-retailers.The survey results revealed that the sector is in a positive mood for this year as seven in tenbusinesses expect their sales to increase. Even though 76% of the SME online retailers highlighttougher competition than a year ago, they are more optimistic in terms of their growth expectationsthis year, with a year-on-year increase of 9%. 67% of the respondents named the increasing numberof websites as the main reason for rising competition, ahead of price sensitivity (42%), whichranked first last year.
The study further revealed that the majority (63%) of the respondents intend to increase thenumber of their trade channels this year to grow their sales. One in four (24%) e-retailers plan tostart using online marketplaces to increase sales while a further 21% aim to open a shop and one insix (16%) want to take out space in a store to sell their goods.
Six in ten (58%) UK SME online retailers surveyed reported an increase in sales in 2014, up fromthe 49% who reported growth in 2013.
On-time delivery emerged as the most important factor for driving customer satisfaction quotedby 62% of the respondents, followed by product price ranked second (52%) and product quality rankedthird with 44%, down from 66% last year, as the survey showed.
What is also becoming increasingly important to UK SME online retailers is providing a goodreturns process for online shoppers, the study found. A third of the retailers surveyed said asimple returns process was a key factor to customer satisfaction last year, up from 23% in2013.
Three in ten (27%) of UK SME online retailers will be simplifying the returns process in 2015 toincrease customer satisfaction, up from 11% last year.
The top initiative named by the respondents for increasing customer satisfaction in 2015 will beincreasing the range of goods (51%) while 41% said they will be improving the range of deliveryoptions this year, compared to 21% in 2014. More competitive pricing now ranks third (32%), downfrom last year’s second place.
Nick Landon, Managing Director, Royal Mail Parcels, said: “Royal Mail’s annual tracker study ofUK SME online retailers shows that there is strong optimism for growth despite increasingcompetition. UK SME online retailers are thinking carefully about how they can develop theirbusinesses during 2015, with one in four looking to expand to online marketplaces, such as eBay andAmazon Marketplace. Simplifying the returns process for customers is also a key area of focus formany online retailers in the year ahead.”
