Study finds that 95 percent of mid-sized UK retailers surveyed are selling on marketplaces, 73 percent are using digital marketing
London, UK – August 13, 2014– ChannelAdvisor Corporation (NYSE:ECOM), a leading provider of cloud-based e-commerce solutions that enable retailers and manufacturers to increase global sales, today announced the results of its Multichannel E-Commerce Study, a survey of more than 200 UK and US online retailers that averaged £1.7 – £3 million in revenue in 2013. The study identifies e-commerce trends, opportunities and challenges, and yielded significant results; 95 percent of UK retailers reported selling on marketplaces, and 73 percent reported using digital marketing.
ChannelAdvisor commissioned Redshift Research to conduct the study, which asked retailers questions about marketplaces, cross-border trade, digital marketing and more. The survey results provide insight into strategies retailers are using to optimise sales across multiple online channels. Below are some of the study’s most significant findings:
- Marketplaces: More than three quarters of UK retailers (86 percent) are currently selling on Amazon, and more than half of retailers (68 percent) reported selling on eBay. UK retailers said that the most challenging aspect of selling on marketplaces is customer service (66 percent), followed by maintaining competitive pricing (51 percent) and product sourcing (49 percent).
- Cross-Border Trade: Almost half (43 percent) of UK retailers reported that 21-30 percent of their online sales come from international marketplaces. Global marketplaces are the number one point of sale for these international transactions. The majority of surveyed retailers in the UK (54 percent) and US (69 percent) think that Amazon provides the best opportunity to sell internationally.
- Digital Marketing: Retailers reported that product listing ads are a top digital marketing strategy in terms of performance. Budget (68 percent), infrastructure and website limitations (38 percent), and confusion about options and the digital marketing landscape (35 percent) are the three most common factors preventing UK retailers from increasing their digital marketing spend.
- Mobile Advertising: Almost half of UK retailers (43 percent) reported that 21-30 percent of their current web traffic comes from mobile devices. Most UK retailers (87 percent) think that web traffic from mobile devices will increase over the next two years. To prepare, 73 percent of UK retailers expect to increase their mobile advertising budget in the next two years.
- Social Media: Retailers’ top three business goals for social media are to increase brand awareness (70 percent), reach a new generation of customers (46 percent) and drive conversions (46 percent). Surveyed retailers said Facebook is the social platform that creates the most conversions for retailers.
“In such a competitive landscape, it’s imperative that retailers are constantly evaluating e-commerce trends and staying abreast of what the rest of the industry is doing”, said Jordan Weinstein, Managing Director, ChannelAdvisor EMEA. “The ChannelAdvisor Multichannel E-Commerce Study suggests that retailers are implementing multichannel strategies to increase their exposure in every stage of the consumer’s path to purchase. Retailers in the UK understand that to find success in a very crowded e-commerce landscape, they need to be visible and reaching their customers via a number of different channels.”
Research was conducted using an email invitation and an online survey. All survey respondents were e-commerce decision makers for their respective companies. To see more detailed results and a comprehensive overview of the ChannelAdvisor Multichannel E-Commerce Study, please visit http://bit.ly/MultichannelE-commerceStudyUK.