E-commerce businesses look to emerging BRICS and CIVETS markets for exports sales
E-commerce businesses look to emerging BRICS and CIVETS markets for exports sales
E-commerce firm eBay has revealed the damaging impact of the Eurozone crisis and domestic inflation on sales has led half of online businesses (49%) to expect to rely more on export sales more in the future.
A further 58.3% of online businesses surveyed by the online marketplace claim to have exported more since the recession began in 2007.
The survey of more than 1,000 online businesses found over a third (38%) of businesses identified the ‘ability to expand customer base’ as the main benefit for selling to customers in other countries.
Over a third (37%) were expecting BRIC countries – Brazil, Russia, India and China – to become more important in 2012 due to continued economic stagnation in Europe, with two thirds (58%) expecting the Eurozone crisis to directly result in a slump in export opportunities. And over a quarter (27%) recognised the need to look further afield to the CIVETS countries – Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa – to expand their customer base.
In the last 12 months over half (59%) of online businesses have exported goods to Russia, and a fifth expect China to be the most important export market after Europe by 2013.
Lack of expert public resource
Half of the businesses questioned identified friends and colleagues as the most useful sources for providing advice on how to sell overseas, compared to only 7% that said they would contact the Department of Business, Innovation and Skills and 6% that would turn to UKTI – the government’s main UK Trade and Investment export arm.
Rather than seeking advice from specialist organisations, 59% of businesses turn to retail platforms such as eBay for advice on international trade, according to the survey findings.
Angus McCarey, eBay UK retail director, said: “In today’s connected world, businesses no longer need to rely on one market for their income. International trade is more accessible than ever and online businesses in particular are perfectly placed to make the most of selling overseas.”
With over half of high exporting businesses (59.3%) confident about the next six months compared to only two fifths (40.7%) of low exporting businesses, McCarey said government and policymakers must do more to ensure services and organisations are equipped to provide expert advice on exporting to all businesses, “but especially to those businesses that haven’t given it a go before and are often held back by a simple lack of understanding,” he added.
Resilient online international exports
The Eurozone crisis (51%), public expenditure/tax increases (45%) and domestic inflation (44%) have had the most detrimental impact on businesses capacity to export, according to the survey.
However many are still reaping the rewards of international expansion, like eBay businessman Stuart Kirkwood, whose company Zest Clothing (1066sales) turned over more than £1million last year, saw export sales make up over 15% of his income in 2011. Kirkwood now exports to over 100 countries and consider Eastern Europe as a real area of growth.
“Last year was a great year for our business, but there is no way we would have exceeded our £1million milestone had it not been for the income we received through our eBay export sales. Selling overseas is a great way to expand your businesses customer base and exporting via eBay has allowed us to sell a higher volume of product without increasing our overheads,” Kirkwood said.
“The internet, the rise of mobile and the growing importance of social media means we are all globally connected consumers. In the current economic climate UK businesses need to take advantage of every opportunity, and the global reach of eBay is an opportunity we intend to exploit.”
