Small and medium-sized enterprises (SMEs) across the UK are making significant changes to their product sourcing strategies, with a growing emphasis on digital channels, according to new data from Alibaba.com.
A study of over 1,000 UK SME sourcing decision-makers, conducted ahead of March Expo 2025, found that cost remains a key driver of change. Just under half (43%) of UK SMEs said sourcing products at more competitive prices is a top priority for 2025. This was followed by finding trusted suppliers (40%), sourcing sustainable products (32%), and acquiring new, trendy products to attract customers (31%).
The data also suggests that UK SMEs are increasingly turning to digital sourcing platforms. More than half (57%) of businesses plan to change suppliers this year, with many looking to online business-to-business (B2B) marketplaces to secure new partners, expand product offerings, and drive growth. Nearly two-thirds (59%) of those surveyed said digital sourcing is now more important than it was a year ago, reflecting a shift towards direct purchasing from manufacturers rather than intermediaries.
The trend is not limited to the UK. Alibaba.com, a major global B2B e-commerce platform, reported a 75% year-on-year increase in orders placed by European buyers in February.
Kuo Zhang, President of Alibaba.com, said: “UK SMEs are becoming more strategic in their sourcing, focusing on affordability, trend responsiveness, and supplier reliability to stay competitive. Our research shows that SMEs are looking beyond cost savings and actively seeking new suppliers to future-proof their businesses.
“This shift aligns with a broader trend across Europe, where more businesses are embracing digital sourcing, gaining greater flexibility and access to a wider range of products to support their growth.”
The changes come as March Expo 2025, Alibaba.com’s largest B2B sourcing event of the year, prepares to launch. The event, which runs from 1 March, connects buyers and sellers worldwide, providing access to over one million new products at competitive prices. Participating SMEs can take advantage of special deals, including discounts on first-time orders and shipping fee reductions.
A growing demand for sustainable and trending products is also shaping the market. In February, the fastest-growing product categories sourced by European SMEs included skincare and cosmetics, gifts and artefacts, and consumer electronics.
With SMEs facing ongoing economic pressures, many are looking for ways to cut costs while remaining competitive. Digital sourcing is emerging as a crucial tool, offering businesses greater choice, efficiency, and access to a wider range of suppliers than traditional sourcing methods.
As the shift continues, platforms like Alibaba.com are positioning themselves as key facilitators in the changing landscape of global trade.
