Home Business News Over half of SMEs now sell to customers outside of the UK

Over half of SMEs now sell to customers outside of the UK

by LLB Reporter
4th Sep 18 1:41 pm

UK SMEs have made significant inroads to increase their exports since 2016, according to new research from Royal Mail released today to support Small Business Advice Week. Over half (52 per cent) of UK SMEs sell to customers outside the UK, up from 40 per cent in 2016. However, this means that just under half of UK SMEs are limiting growth opportunities by continuing to focus on domestic sales alone.

Cost and complexity of getting through customs (34 per cent), knowledge of the market (20 per cent) and risk associated with currency conversion (19 per cent) are some of the factors putting off UK SMEs selling to customers outside of the UK.

Europe is currently the most popular region for UK SME exports. A quarter (25 per cent) of these businesses already sell within the EU and would like to seek opportunities to sell outside the EU. Thirteen per cent already sell outside the EU and will be seeking more opportunities to do so. Over the next five years, UK SMEs would like to export 20 per cent of their goods.

While domestic online marketplaces are popular among SMEs looking to grow their UK customer base, only four in ten (37 per cent) sell products on international marketplaces. While this represents a 60 per cent increase from 2016, the figures suggest that many are missing out on the huge sales potential such marketplaces offer.

Exporting UK SMEs expect almost a fifth (17 per cent) of their sales to come from outside the UK this Christmas. This peak sales period is increasingly viewed as an opportunity to drive further growth through international sales, as well as to take advantage of changes in currency rates.

A spokesperson for Royal Mail said: “Expanding your business overseas might seem like a daunting prospect. But, the reality is that ecommerce is driving global trade. If UK SMEs want to benefit as a result, they need to expand into international markets. Many of the perceived barriers our research has identified can be easily addressed. As the proud delivery partner of the UK’s small businesses, we have pulled together some key hints and tips to help business owners who want to take the leap.”

You may also like

Leave a Comment

CLOSE AD

Sign up to our daily news alerts