UK SME e-tailers target growth
through online marketplace sites in 2015
The optimism for
growth – which is up nine percentage points on last year – is despite 76 per
cent of SME online retailers saying competition is more intense than a year
ago. The increasing number of websites was the top reason for rising
competition (67 per cent), overtaking price sensitivity (42 per cent) which
ranked first last year, according to the
latest Royal Mail Tracker study.
Targeting
online marketplaces for growth
The study found that
63 per cent of UK SME online retailers are planning to increase the number of
channels they trade through in 2015 to grow sales. One in four (24 per cent)
e-retailers plan to start using online marketplaces to increase sales. A further
21 per cent plan to open a shop and one in six (16 per cent) are planning to
take out space in a store to sell their goods.
Delivering
sales and customer satisfaction in 2014
Six in ten (58 per
cent) reported an increase in sales in 2014, up from the 49 per cent who
reported growth in 2013, the study found.
Delivery when
expected (62 per cent) jumped to top of the rankings for factors driving
customer satisfaction last year. The price of goods (52 per cent) was ranked
the second most important factor. The importance of the quality of the product
fell. In the study, 44 per cent of online retailers said this was a key factor,
compared with 66 per cent last year.
Meeting
customer needs in 2015
UK SME online
retailers are increasingly recognising the importance of providing a good
returns process for online shoppers. A third of retailers surveyed said a
simple returns process was a key factor to customer satisfaction last year, up
from 23 per cent in 2013. Three in ten (27 per cent) UK SME online retailers will
be simplifying the returns process in 2015 to increase customer satisfaction.
This is up from 11 per cent last year.
Increasing the range
of goods (51 per cent) will be the top initiative for increasing customer
satisfaction in 2015. Four in ten (41 per cent) said they will be improving the
range of delivery options in 2015, which compares to 21 per cent in 2014.
Pricing more competitively (32 per cent) fell to third in the rankings from
last year’s second place.
Nick Landon, Managing
Director of Royal Mail Parcels, said: “Royal Mail’s annual tracker study of UK
SME online retailers shows that there is strong optimism for growth despite
increasing competition.
“UK SME online
retailers are thinking carefully about how they can develop their businesses
during 2015, with one in four looking to expand to online marketplaces, such as
eBay and Amazon Marketplace. Simplifying the returns process for customers is
also a key area of focus for many online retailers in the year ahead.”
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