Looking further afield
Almost seven in 10 (69%) UK SME online retailers are confident that their sales will increase in 2019, according to our latest study.
With global reach and as the leading enabler of ecommerce in the UK, Royal Mail is well placed to observe trends across the industry.
The biggest perceived challenges for UK SME online retailers in 2019 are economic instability in the UK, pricing goods competitively, attracting new customers and growing competition in the online space.
An impressive 68% of retailers experienced an uplift in sales last year, compared to the previous year. However, 73% of online retailers expect costs to be higher in 2019.
Our study also found that 70% of UK SME online retailers currently sell overseas. These retailers sell the most to Europe, the United States and Asia.
UK retailers are increasingly looking overseas to increase their sales. In 2019, 68% of UK SME online retailers intend to increase their international sales revenue. This is up from 64% this time last year.
Key plans for increasing international sales revenue include: simplifying the sales/ordering/delivery and payment process (46%), selling more to the markets they already sell to (31%) and targeting new markets and countries (25%).
When asked which destinations they intend to start selling to in 2019, Europe, the United States and Canada came out on top for UK SME online retailers. In terms of prospects, Europe is perceived to hold the greatest opportunity for overseas sales, followed by the United States and Asia.
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.
