UK online retailers to start Christmas early: survey shows advance in promotions to boost international sales

It has been reported that UK SME online retailers have begun their Christmas promotions this week - a week earlier than last year research from Royal Mail has revealed.

From the 300 SMEs that were studied, 57% surveyed said it planned to use price promotion to secure sales this Christmas. Free delivery and free returns are other promotions tactics companies are set to use.

64% of businesses are expecting its international orders to increase this year. Last year's run up to Christmas saw 51% of retailers expecting international sales growth. This year USA is anticipated to act as the largest international market, with France at close second place.

Royal Mail's Director of Royal Mail Parcels, Nick Landon, has said: "Royal Mail's study of UK SME online retailers shows competition for customers will start earlier this year, with price promotions the key tactic for online retailers as well as offering free delivery and returns to their shoppers."

Landon added: "Royal Mail has also been preparing for the busy festive period and is opening a dedicated network of parcel sort centres to handle the additional volume we experience every Christmas."

Aurora Air International to return after 20 year absence

Cargo airline Aurora Air International has re-entered the airfreight market business after a 20 year hiatus. Having had its operations deactivated in 1995, the opportunity has risen for the company to re-enter the air cargo market.

The airline company has established its new headquarters at MidAmerica St Louis Airport and expects its first flights to take off during the second quarter of 2015.

The airline is due to operate a fleet of Boeing DC-10 for its Latin American and Asian routes. It is to specialise in the perishables and pharmaceuticals trade.

The decision to base the company at MidAmerica is a result of Aurora Air Cargo recognising the airport and its operations as a "key step" in plans to open up Latin American and Asian trade routes which will offer "unique support for perishable suppliers from the mid-West US."

Aurora president, Carlos Smith, has said: "As airplanes start to operate out of MidAmerica a new and secure chain will be available for mid-West product shippers to and from Asia and Latin America with less handling and ground movement than is available today." Smith continued: "Asia and Latin American shippers will enjoy this route as their goods, especially perishables, are not double and triple handled in the USA en route."

E-commerce buzz words - how many do you use?

Atul Bhakta, Managing Director of One World Express, has recently shone a light on the increasing pervasiveness of the language of e-commerce in the international shipping sector.

In an interview with Post & Parcel he come up with a list of current buzz words associated with global e-commerce. How many from the list are you familiar with?


Growth - surely not preserved for the realm of online business, the issue of growth is at the forefront of every business person's mind, but it's certainly true that the growth opportunities within the online channels are particularly compelling. E-commerce is often seen as a way into foreign markets, without the initial outlay cost of setting up a physical office abroad.

Expansion - different to growth in that it implies not only increased sales but a broader consumer base, e-commerce offers more opportunities to expand into international markets than ever before.

Export - clearly, export costs are a vital element of any e-commerce model, and there a variety of options available to businesses and consumers. As a business, should you offer free international delivery, link up with an international delivery partner, or encourage your customers to arrange their own deliveries? And how much advice should you give on customs and related issues? As global markets become increasingly interconnected, such issues are emerging as essential to the future of global business - whoever knew logistics was such a host topic!

Cost effective deliveries - For consumers, it's important that the large potential savings of making purchases online are not counteracted by prohibitive delivery costs. This is why many e-commerce operators team up with discount parcel delivery resellers such as Transglobal Express, securing top-brand deliveries from the likes of UPS, DHL and TNT at a fraction of the price. Many consumers also may opt to arrange deliveries through these agents directly.

Visibility of parcels - A significant challenge currently faced by e-commerce professionals is the development of robust parcel-tracking systems. Customers want to know where their parcel is, and when it will be delivered. Lack of such a facility makes many potential buyers more tentative, so it's important to integrate this into your business model.

Customs Clearance - This is a tricky one as there are so many potential markets with such ever changing import policies. Argentina, for example, recently imposed strict regulations regarding the import of goods bought from foreign e-commerce websites, and Russia has imposed similar restrictions, in such a way as to hinder the likes of Ebay and Amazon's rapid expansion into the huge Russian market. It's important for companies to maintain a working knowledge of the customs restrictions of the country they're sending too and, importantly, to encourage consumers to do the same.

Source: Post & Parcel

Argentina limits citizens to two foreign e-commerce purchases a year

The government of Argentina has introduced strict new measures limiting purchases from international e-commerce websites.

According to new controls published on Tuesday 21st January, Argentina residents are restricted from making any more than two online purchases from foreign e-commerce websites each year.

In addition, for purchases of more than $25 worth of goods, consumers must register as "importers" and comply with regulations set out by the General Import Regime. Purchases over the $25 limit will also be subject to a 50% import duty, applicable to both the value of the goods and the freight costs, and anyone importing more than their limit will have to clear goods personally at the customs office.

Argentina's head of Administration of Public Revenue (AFIP), Richard Echegaray, said the new measures were being implemented "in order to optimise traceability of transactions". The general understanding is that Argentina is bringing in the new law to restrict currency leaving Argentina at such a difficult economic time for the South American country. Argentina's currency reserves recently fell to their lowest level in seven years.

International online shopping had been booming in Argentina until recently, with 2013 seeing twice the number of Argentinians making online purchases than 2012.

In spite of the severity of these new laws, an announcement by the Directorate General of Customs seems to indicate that certain goods will be exempt, and analysts have suggested that electronic applications such as computer software will not be subject to such tight restrictions.

Source: Post & Parcel

"Exporting is GREAT" campaign kicks of UK Export Week

Are you thinking of growing your business by exporting abroad? This week is Export Week in the UK, and there are lots of opportunities for SMEs to learn more about exporting and access support. Marking the beginning of the seven day campaign, UK Trade and Investment (UKTI) launched "Exporting is GREAT" on Monday, an initiative forming part of the larger "Business is GREAT" campaign that will promote the benefits and possibilities of international export to over 700,000 firms across the country. Its main aim is to promote the support currently available to SMEs.

Business Secretary Vince Cable said of the campaign: “British small and medium sized businesses are the lifeblood of our economy. Many are doing incredible things and selling their services and products abroad. But too many do not realise their global potential." The campaign is intended to help SMEs tap into this potential with a variety of tools. On the campaign website, SMEs can arrange to speak to an export advisor, read inspirational testimonials from successful export ventures and sign up for regular export-related newsletters. The campaign is expected to generate 3,000 appointments between UKTI and aspiring exporters and to drive £1.2 billion in additional export revenue.

Speaking at the launch of "Exporting is GREAT", Trade and Investment Minister Lord Green said “The UK’s future prosperity will not come from relying on domestic markets alone. Businesses excel with UKTI’s support and we want to make sure that UK firms are not just trading abroad but thriving there and competing with the best the rest of the world has to offer.” 

FedEx to take part in APEC CEO summit next month

FedEx executives will join business and government leaders in Bali, Indonesia  for the Asia Pacific Economic Conference (APEC) CEO summit on 5th-7th October. The high-profile event plays a major role in creating networks and increasing openness and integration among global trading partners and last year included keynote speeches from the leaders of China, Russia, Australia and Vietnam.

The theme of this year's conference is “Towards Resilience and Growth:  Reshaping Priorities for Global Economy,” and  Michael L. Ducker, Chief Operating Officer and President of International, FedEx Express, will participate in the summit dialogue session entitled ‘The State of the Global Trading System: Where To Next?' He commented: "FedEx has long been a strong supporter of facilitating global trade by lowering barriers to help markets grow and of making it easier for our customers to ship internationally. The APEC CEO Summit continues to be the leading forum for new ideas in trade facilitation among the world’s fastest growing economies, and FedEx is looking forward to progress in streamlining trade procedures worldwide.”