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Survey shows two thirds of online retailers predict sales growth in 2013

Nearly two thirds of UK online retailers are predicting improved sales in 2013, according to a survey by Royal Mail.

The study revealed that just over half of SME online retailers increased their sales in 2012 with two thirds saying they were confident that sales would rise this year. However, 70% of those questioned said that competition is more intense than two years ago.

Due to the increase in UK shoppers using Smartphones and tablets to buy goods, 35% of the SME online retailers surveyed said they were planning to develop mobile apps in 2013 with 10% saying they had already developed them.

Almost six in ten online retailers said the increase in the number of websites selling goods was fuelling increased competition for sales. Half of those surveyed said customers were more price sensitive. Four in ten said the rise in price promotions meant that shoppers were seeking out the best prices the majority of the time.

The study also revealed that 57% of SME online retailers said attracting new customers was among their biggest challenges to increasing sales in 2013.

Nick Landon, managing director of Royal Mail parcels, said: "Our study shows that online retailers are responding to the needs of shoppers to grow sales in an increasingly competitive marketplace."

Source : Retail Bulletin

02 January 2013
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