Tuesday, 7 April 2009Online traders confidentALMOST two thirds of online businesses are confident about the immediate outlook despite the current economic gloom, a report said yesterday.With 64% of retailers trading on the internet upbeat, more than three-quarters (78%) planned to expand or diversify this year, according to an index monitoring the mood of the companies. Researchers also found more than half (54%) of the companies surveyed expected rising sales, with another 30% expecting sales would remain stable. In addition, only one in four had set lower revenue targets for the year, according to eBay’s Online Business Index. Hundreds of small and medium-sized businesses which trade on eBay, other sites and from bricks-and- mortar outlets were surveyed to produce the new quarterly index. Data from the online market place showed turnover of UK businesses selling via the internet grew faster in 2008 than the previous year, averaging 28.6% growth in the last quarter, up from 23.4% 12 months before. Exports also improved, surging 128% in the last year. However, a note of caution was sounded, with more than half (51%) of the businesses surveyed believing exchange rates would constrain their growth over the next 12 months, half considering the cost of suppliers to be a factor, and almost as many (48%) voicing concern about consumer demand. Mark Radcliffe of Liverpool, who sells electronic accessories through the internet and turned over £5m last year, was among those optimistic about the future, with plans to add to his 22 full-time staff this year. He said: “In just three years, I’ve established a business that sells 40,000 items a month – a business that continues to grow, despite the tough trading environment we’re seeing.” Business Secretary Lord Mandelson welcomed the findings, commenting: “It is encouraging to see so many online businesses planning for expansion. “As this survey shows, although all small businesses are facing a tough economic climate, many are embracing the internet as a means of reaching new export markets.” It was therefore “vital”, he said, for government to continue to invest in next generation broadband and to support small businesses through difficult times. Researchers compiled responses from 410 of eBay’s top UK sellers Mar 23 2009 by Our Correspondent, Western Mail http://www.walesonline.co.uk/business/online-traders-confident |