SMEs may think that exporting requires physically setting up overseas, but the e-commerce opportunities are vast
An increasing number of small businesses are turning to the internet and their e-commerce websites to sell their products overseas, bypassing traditional and expensive routes to export.
Website Freelancer.co.uk analysed 2,200 small businesses in the UK and found a 42% increase in the number selling their products online and a 36% rise in the number of small businesses selling their products overseas via their e-commerce sites. The survey also found that a large number of startups in the last year began trading exclusively online, with a 32% increase on the year before.
Bill Little, director of European communications at Freelancer.co.uk, believes that the small businesses and startups are turning to the internet and their e-commerce sites simply due to cost: "The internet connects the consumer with the small business quickly and cheaply. Small businesses can't afford overseas sales teams. With an effective e-commerce website, small businesses can market and sell their goods and services to every country in the world effectively. What's more, they can hire a freelancer to localise their site into any language in which they wish to trade."
Little has noticed a trend with the types of small businesses who are doing this: "Services, retail and manufacturers are all increasing their exports. The internet has made it easier and now small businesses are taking advantage, from natural skin products, to designer fashion, mirrors, finance experts and food and more."
One such small business which is capitalising on their internet strategy is Breffo.com, which launched its first product in 2009. Breffo.com now actively sells its range of products to more than 55 countries worldwide.
Patrick Matthews, founder of Breffo.com says: "Breffo have registered multiple sites in multiple countries. We have found that localising business presence, even online via websites, .ie, .fr, .co.uk, etc increases sales considerably. People like to buy local first and if it's not available locally, they then look outside their region. E-business allows immediate global access, which is great for companies."
Another company that has an active e-commerce strategy is Quarterre, a small business that specialises in furniture for bikes. One of the four designers and partners of Quarterre, Clive Hartley, says: "E-commerce is our primary sales channel. As communicating the quality of the materials, function and design of our products is essential, it is extremely important to us to use the best photography and product imagery possible to explain how our designs work and what they add to a home or office space. This critical, tangible aspect also means we try to balance this online presence with physical exposure both in selected physical retailers and design shows. These have proved very successful for us in terms of exposure and meeting our client base."
Hartley adds: "With regards to overseas markets, here we rely on our personal knowledge of different countries' markets – all of us have lived and worked abroad at some point in our professional lives. This has helped us enormously in targeting the right publications and knowing shops most suited to our brand. As e-commerce is so key to our business, we focused particularly on gaining exposure via design blogs, which have a strong international following. This has led to a great deal of interest and sales coming from beyond the UK."
There are many resources available for small businesses from the UK government, trade bodies and industry to help them with their online and e-commerce strategies. UKTI has a number of online resources to help small businesses export overseas. There is the OpentoExport website which focuses on promoting business opportunities overseas, and links to potential overseas buyers; there are webinars and small businesses can sign up to the UKTI's business opportunity alerts.
There is also the Business and IP Centre who has its own "Innovating with Growth" programme. Jeremy O'Hare, innovating for growth relationship manager, says: "We're currently working with over 50 SMEs on our Innovating for Growth programme. All the businesses need to have a website as it acts as their shop window, whether they're B2B or B2C. We've seen how good advice around their brand and the professional appearance of their website converts website hits to sales."
The Institute of Export is the only professional body in the UK that offers recognised and formal qualifications in international trade.
"Exporters across the UK invest in the IOE's Certificate in International Trade and Advanced Certificate in International Trade. The certificate enhances employees' skills, knowledge and understanding of exporting and international trade – focusing on key areas including international business, international trade management and transportation and documentation," according to IOE director general Lesley Batchelor.
Batchelor says it is vital that small businesses understand the new markets they are targeting – not just the GDP figures and statistics – and to do the research into who they are selling to.
More and more small businesses are turning to their online resources to export to overseas markets, not only to make cost savings but to reach a global audience. Matt Barrie, CEO of Freelancer.co.uk says: "Small businesses are investing heavily in e-commerce as they know that is the future. Watching previously untouchable high-street giants HMV and Comet go into administration is also acting as a spur to small businesses to trade online, which will help them to cut overheads and open up their products to new markets around the world."
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