Postal costs are holding back SME growth

[TrueBlueTerrier]

http://www.bmmagazine.co.uk/news/postal ... me-growth/" onclick="window.open(this.href);return false;?

The survey shows that 31 per cent of SMEs feel that postage costs and delivery logistics will limit their ability to grow, while three quarters of respondents state that overseas shipping costs hinder their chances of obtaining new customers in other countries.

Tanya Lawler, the vice president of eBay in the UK who commissioned the survey, said: “We have been calling on the government and policy makers for years to do more to level the playing field for Britain’s army of SMEs by reducing postal costs and improving delivery and logistics services. These diverse businesses are vital to the UK because they are the engine of our growth at home and abroad, with more than four in five small businesses on eBay in the UK selling internationally.”

Paul Robinson, the owner of Premier Lingerie in Darlaston, in the West Midlands, and runs an eBay shop, commented: “Postage costs us a fortune on every order. We took the step to subsidise the postage on both UK and export services otherwise we wouldn’t get any orders. This impacts upon our bottom line but it is a necessary measure to maintain competitiveness particularly overseas, which accounts for 80 per cent of our business.”



With the general election around the corner, other issues that cropped up in the study that SME owners want politicians to focus on include lowering taxes for all businesses, investment in faster broadband, improved postal and delivery services, better advice on setting up and running an online business, more police effort to tackle cybercrime and fraud.

[scoobymunster]

Completely biased article. I bet postal charges for the lingerie business owner are minor compared to the fat chunk of change both eBay and Paypal take per transaction.

[spiderj]

Between eBay and PayPal and packing you can expect to lose up to 14 per cent on every sale depending on style of listing
Postage is another matter
Royal mail are cost effective for SD cards etc
I use hermes In uk for anything heavier

International use airmail for anything up to lunch box size or just don't bother as the cost of postage negates the sale.

Yes the survey will be biased and eBay etc take a hefty chunk but more of RM business is going to courier firms .

Whenever I've ran an eBay business first thing I look at is postage costs.

Hermes are improving,yodel still mince tho.

[fishtank]

Always makes me laugh this.
Yes costs generally hold back a company's growth, What do they want, Royal Mail to subsidise their business model? Let's be honest that's exactly what's been happening for the last 20 years and now that it isn't these companies are starting to realise that selling tat on t'internet because peeps are too lazy to go to a shop isn't quite the license to print money it used to be.