Small retailers trading online are focusing on sales channels such as eBay and Amazon Marketplace to boost turnover in 2015.

Research by Royal Mail revealed that seven in 10 small shops expect growth this year, indicating that the sector is in bullish mood.

It showed 63% plan to increase the number of sales channels the trade through, with online marketplaces a key area for them to break into.

Nearly one-in-four plan to start using online marketplaces, with 21% planning to open a new shop and one-in-six creating a concession in an existing store.

Nick Landon, Managing Director of Royal Mail Parcels, said: “There is strong optimism for growth despite increasing competition.

“UK SME online retailers are thinking carefully about how they can develop their businesses during 2015, with one in four looking to expand to online marketplaces, such as eBay and Amazon Marketplace.

“Simplifying the returns process for customers is also a key area of focus for many online retailers in the year ahead.”

The research also uncovered a strong performance among retailers last year. Just under six in 10 retailers surveyed reported increased turnover, up from 49% in 2013.