Shutl survey shows SMEs are worried about bigger competitors

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eBay owned Shutl has commissioned UK research that finds SME retailers to be broadly positive about trading conditions looking forward in 2017 and further towards 2018. But they perceive the big risks come from bigger retailers.

73% of SMEs who were quizzed in the survey said competition from larger online retailers was the biggest threat to the success of their business in 2017/18. They said the might and marketing power of bigger online brands represented a real threat.

Apparently 59% feel the spread of delivery or distribution networks gave larger retailers the biggest competitive edge. But 34% felt smarter ecommerce technology, and better delivery options for SME retailers would help them compete more effectively.

Delivering better value with customer service was key to competing against the larger retailers. 70% believe the delivery of a more personalised customer service and a unique brand experience could win out against the larger companies.

Jason Tavaria, head of Shutl, says: “The results of this survey point to buoyant SME retailers, who are increasingly using technology and smarter selling options to compete against the bigger retailers with larger budgets. Today delivery is no longer such a big USP. Carriers have become increasingly savvy about the SME group as a compelling audience, and in turn costs have reduced and technology is supporting an infrastructure that is dynamic and cost effective. Thus the continuing technological innovation to support SMEs is making it easier, and more cost effective for this group to compete.”

One Response

  1. My biggest issue with the big discount sellers is they offer little or no knowledge of the products they often sell. We get bombarded with questions about products daily yet this isn’t reflected in the sales. Yet look at feedback for these rock bottom price sellers and you wil see a constant stream of complaints about lack of service. They simply succeed on the basis that and stupidly low price will always bring in crowds.
    It’s hard to compete on service when everywhere seems to be pushing the ‘lowest price’ approach. Ebay and amazon etc are classics. Meanwhile the smaller sellers with good service pick up all the work load for reduced margins! Value for money is now an outdated concept as cost plus 5% seems to rule.
    I’m sure one day the customers will realise that price is only part of the equation, but the big question is how long can the little hold out?


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