As many as three quarters of online SME retailers in the UK are planning to use affiliate marketing as a means to expand into international territories within the next twelve months, according to new research conducted by Optimus Performance Marketing. 

The fact that affiliate marketing has ‘fewer risks’, ‘less financial costs’ and is ‘a good way to test the customer reaction’ emerged as the top reasons SME owners believe affiliate marketing presents a good strategy for the international growth of their online retail businesses.

Optimus Performance Marketing polled 602 business owners of UK-based online SMEs, who currently employ an average of 62 individuals, across a range of retail industries (fashion, beauty, pharmaceutical, furniture etc). Respondents had not implemented any affiliate marketing activity within their businesses at the time of the research taking place.

Owners were initially asked to disclose whether or not they would be looking to expand their business into international territories within the next twelve months, with the majority (69%) stating that they were planning to branch into other countries. Of these respondents, 74% revealed that they would specifically be looking to implement affiliate marketing techniques (bloggers, banner ads, search engine marketing etc) within the next twelve months in order to support this move.

When the SME retailers were asked to elaborate on why they were choosing affiliate activity to support their overseas expansion rather than other marketing options (advertising, public relations etc), the main reasons emerged as follows:

1. Fewer risks – (62%)

2. Lessened financial costs- (51%)

3. Better way to test customer reactions- (29%)

4. Impressed by competitors results from affiliate activity- (14%)

5. Easier to measure results than alternatives- (8%)

When asked to reveal the countries they would be most keen to expand into within the coming twelve months, the U.S. and Canada (67%), China (54%) and France (41%) emerged as the most popular countries listed by the participating SME retailers.

Mark Russell, CEO of Optimus Performance Marketing, said “After seeing how larger British retailers, such as River Island, have implemented affiliate activity into their marketing strategies to expand successfully overseas, it is only logical that British SME’s want to follow suit.”

“As a result of internet retail, we are no longer confined to our own territories, and now consider ourselves to be very much ‘citizens of the world’ when it comes to our online shopping preferences. Although somewhat daunting at first, by executing an affiliate programme to expand overseas, UK retailers have the chance to connect and build relationships with trusted publishers in new markets around the world. This can subsequently help deliver a more localised customer experience for foreign shoppers, without jeopardising the brand values of the existing UK retailer." 

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