Friday, 17 August 2012

Potential danger for UK stores on the horizon from foreign shores

A competitive market for eBay stores in the UK could be set to get even bigger with Royal Mail's announcement that they will now be sending Chinese imports to the EU.

Royal Mail's European parcel business, GLS, has formed an alliance with Chinese company, ZJS Express, to provide a package delivery service for China to Europe.

This announcement could be both good and bad for online sellers. First let's be positive and look at the good aspects of this. Having the ability to receive products from Chinese suppliers, gives you more options as to where you purchase your products from, allowing you to possibly get cheaper supplies or get items that you previously haven't sold before. The greater variety you can provide your customers with, the happier they are going to be to purchase for you. However, you need to bear in mind that you will not be able to buy items in bulk as that would require you to ship through containers. This option should only be undertaken if you are a relatively small business looking to sell a small number of items.

While Royal Mail's partnership with Chinese suppliers does provide some positives, the potential negatives could cripple an online store in the UK. If a Chinese supplier does decide to sell directly to UK customers through the marketplace, it gives them the ability to provide customers with products at cheaper prices, that you just can't match. This would result in you losing a large number of your customers, lowering your total sales and damaging your overall profit. 

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