The majority of UK SME online retailers are optimistic about their sales in 2019, with overseas revenues remaining an important factor for business growth, a recent survey by Royal Mail has shown.
According to the study, almost seven in ten (69%) UK SME online retailers expressed confidence that their sales will increase in 2019.
The biggest challenges that UK SME online retailers see in 2019 include economic instability in the UK, pricing goods competitively, attracting new customers and growing competition in the online business.
The majority (68%) of the retailers surveyed said that they experienced an uplift in sales last year, compared to the previous year. However, 73% expect costs to be higher in 2019.
The study also found that 70% of the UK SME online retailers currently sell overseas, mostly to Europe, USA and Asia.
This year, 68% of the retailers surveyed intend to increase their international revenues as the overseas sales play an important role for their business growth. The figure is up from 64% last year.
To increase their international sales, the retailers plan to simplify sales/ordering/delivery and payment process (46%), to sell more to the markets they already sell to (31%) and to target new markets and countries (25%).
Europe, USA and Canada were cited by the respondents as the top destinations they plan to sell their goods to this year. In terms of prospects, Europe is perceived to provide the greatest opportunity for overseas sales, followed by USA and Asia.
A spokesperson from Royal Mail said: “Although obvious challenges exist in 2019, it’s promising to see the level of business confidence from UK SME online retailers. Retailers are focusing on the opportunities they have for growth and are looking at how to be successful both in the UK and abroad.
“At Royal Mail, we already support many retail businesses in delivering against these opportunities. We make exporting as simple as possible by giving UK SME online retailers the tools they need, and we look forward to working with even more of these great businesses this year.”
