• The majority of UK small businesses (60%) are not exporting abroad, potentially missing out on millions of pounds in lost revenue, according to new research from Royal Mail
• The research released today as part of Small Business Advice Week (5th – 11th September), lists key reasons for this, including the perceived cost and complexity of getting through customs (26%), a lack of knowledge of the market (21%) and language barriers (21%)
• The scale of the potential missed revenue is illustrated by the fact that among small businesses who sell internationally, just over a quarter of their sales (26%) this Christmas are expected to come from international orders
• 35 per cent of small businesses believe Europe holds the most potential to generate new sales for their business. 28 per cent believe the USA and North America are the most promising markets
• To support UK businesses looking to expand internationally in the run-up to Christmas, Royal Mail’s Tracked and Signature services are now available to 14 new countries*
• Royal Mail has also announced it is increasing the compensation it offers customers using its International Tracked products from £50 to £100.The increase will apply to items posted from the 10th of October 2016

The majority of UK small businesses (60%) are not exporting abroad, potentially missing out on millions of pounds in lost revenue according to new research from Royal Mail released today as part of Small Business Advice Week (5th – 11th September).

For 26 per cent of small businesses, the cost and complexity of getting through customs is the main obstacle to exporting. However according to Royal Mail’s International Delivery Matters reports, many international orders from outside the EU fall below the minimum price threshold at which customs duties are chargeable.

Other reasons given by small business owners for avoiding exporting were a lack of knowledge of the market (21%) and language barriers (21%).But the research shows that those who are not selling overseas are missing out. Among the 40 per cent of business who sell internationally, just over a quarter of their sales this Christmas (26%) are expected to come from international orders.

The study of 300 senior decision makers and small business owners was conducted by Royal Mail to assess small business owners’ attitudes to international growth. It also found that 35 per cent of small businesses believe Europe holds the most potential to generate new sales for their business. Looking further afield, 28 per cent believe the USA and North America hold the most potential.

To support UK businesses looking to expand internationally, Royal Mail Royal Mail’s Tracked and Signature services are now available to 14 new countries.*  Royal Mail has also announced it is increasing the compensation it offers customers using its International Tracked products from £50 to £100. The increase will apply to items posted from the 10th October 2016.

Small town, big dreams

A further look into the export aspirations of UK small business owners found that 10 per cent are currently selling to customers within the EU and would like to seek more opportunities to sell to non-EU customers. 15 per cent said they sell outside the EU and would like to seek even more opportunities to sell to non-EU customers.

While domestic online marketplaces are popular among small business looking to grow their UK customer base, only 25 per cent of small businesses look to international marketplaces to grow their sales potentially missing out of the huge sales potential they offer.

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Source: Royal Mail Group