95% of UK retailers now sell via online marketplaces: study
Most UK retailers now sell via online marketplaces, while almost half use them to trade overseas, a new study suggests.
ChannelAdvisor’s Multichannel Ecommerce Study
, carried out by Redshift Research, questioned 200 UK and US retailers with revenues averaging between £1.7m and £3m. It found that 95% of UK respondents reported selling on marketplaces. Some 86% sold on Amazon and 68% on eBay.
Asked what their main concerns were about selling in this way, 66% cited customer service, 51% said they found it challenging to maintain competitive pricing and 49% said product sourcing.
Some 43% of UK retailers also said that between 21% and 30% of their online sales came from international marketplaces, which were the leading point of sale for international transactions. Asked where the best opportunities were for overseas sales, 54% of UK traders opted for Amazon, as did 69% of US traders.
Meanwhile, 73% of UK retailers said they used digital marketing, and in particular product listing ads. Asked about the factors preventing them from upping their spend, 68% pointed to budgets, 38% to infrastructure and website limitations and 35% said there was confusion about the options and the digital marketing landscape.
In other highlights, 73% of UK retailers said they would increase their mobile advertising budget in the next two years, with 43% stating that 21 to 30% of their current web traffic came from mobile devices, and 87% expecting that proportion to rise in the next two years.
Finally, 70% said they wanted to use social media to increase brand awareness, while 46% wanted to use it to reach a new generation of customers and the same proportion wanted to drive conversion. Asked which platform gave them most conversions, retailers named Facebook.
“In such a competitive landscape it’s imperative that retailers are constantly evaluating ecommerce trends and staying abreast of what the rest of the industry is doing,” said Jordan Weinstein, managing director, ChannelAdvisor EMEA
. He said retailers were using multichannel to increase their exposure in “every stage of the consumer’s path to purchase." He added: “Retailers in the UK understand that to find success in a very crowded ecommerce landscape they need to be visible and reach their customers via a number of different channels.”Image:
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