Everything you need to know about U.K. eCommerce

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The United Kingdom is Europe’s most developed region for online shopping and has the 5th largest economy by GDP. A lengthy history of economic growth, foreign commerce, and political stability has led to a highly advanced and diverse economy. International businesses and investors are also drawn to the UK because of its high standards of accountability in commerce, solid legal structure, and economic taxation system.

Top Online Marketplaces in the U.k.

The UK is a profitable eCommerce market where global brands and businesses may reach niche customers. As a mature eCommerce market, the UK has well-established structures and a captive population acclimated to purchasing online for everyday items such as groceries and personal care. When it comes to the UK’s online marketplaces, Amazon and eBay hold a commanding lead, along with the following platforms:

Amazon UK

amazon uk

Since its foundation in the United States in 1994, Amazon has expanded its offerings to include a wide range of products, including books and CDs, as well as a wide range of other items. Amazon is now the undisputed global leader in eCommerce, with the highest overall sales. Amazon has extended to numerous nations, including the UK. When Whole Foods Market was purchased by the company, it expanded into brick-and-mortar stores in addition to other companies such as video streaming and publishing.

The site receives an estimated 437 million monthly visitors.

eBay UK

ebay uk

To this day, eBay is the most popular online platform in the United States, where companies and individuals may sell directly through its own online auction system. Over the past two decades, eBay has grown to include the UK, as well as more than 20 other nations. The company now facilitates the purchase and selling of a wide variety of things, ranging from cars to electronics to clothing, as well as everything in between.

The site receives an estimated 328 million monthly visitors.


Source- Asos

For more than a decade now, Asos has been one of the world’s most popular online fashion and beauty retailers, ranking fifth in the world’s lifestyle, fashion, and clothing categories, according to Forbes.

This is how it works now: Asos sells more than 850 different brands, has its own clothing line, and ships to every country in the world from fulfillment centers in the UK, US, and EU. They are mostly young adults from all over the world who are its main customers.

The site receives an estimated 33.73 million monthly visitors.


Source- Tesco

Tesco is a British grocery chain with 3,400 locations around the country and a strong eCommerce business, which ranks first in the United Kingdom in the grocery categories.

Tesco has extended beyond groceries to include apparel, banking, telecommunications, and other services, establishing them as a competitor in a wide range of industries and gaining clients from a diverse range of demographic backgrounds.

The site receives an estimated 9.346 million monthly visitors.


Source- Etsy

While Etsy may be considered the leader of the “chasing pack,” a large gap exists between it and the UK’s eCommerce top two marketplaces (Amazon and eBay). Indeed, eBay visits outnumber Etsy visits by more than 8 times, while Amazon visits outnumber Etsy visits by more than 11 times.

The site receives an estimated 48 million monthly visitors.


Source- Wayfair

Wayfair is the UK’s eCommerce leading site for homeware and furniture. 24.1 million monthly visitors is a reasonable level, given that this platform is concentrated on a single product category. In a niche, clients are frequently one-time visitors who spend a considerable amount but don’t return. The shopping basket is larger than in most other markets.

The site receives an estimated 20.15 million monthly visitors.

Customer Online Shopping Behavior in the U.K.

Customer Online Shopping Behavior
  • The retail industry, which the UK leads in Europe, accounted for approximately 8% of total eCommerce sales throughout all industries.
  • About one-third of UK consumers used Buy Now Pay Later (BNPL) methods while purchasing casual apparel, while  31.4% of respondents utilized BNPL solutions when dining out, and 25.7% of respondents used BNPL solutions when purchasing cosmetic goods.
  • In the third quarter of 2021, mobile phones accounted for 3.5% of online transactions, compared to 6.4% of purchases made via desktops and laptops.
  • About 54% of British online buyers often return the items they buy from the store website.
  • A whopping 61% of online shoppers will abandon their carts if the delivery prices are too high.
  • Price comparison is the primary reason given by 53% of online customers for shopping online.

By Statista

Understanding the festive Shopping Market in the U.K.

To keep customers coming to your sites, sellers take advantage of sales that occur practically every month of the calendar year. Valentine’s Day, Mother’s Day, Easter, and Singles’ Day are just a few of the numerous milestones to be encountered on the way. For a better understanding of how these particular festivals affect sales, take a look at the following statistics.

  • According to estimates, the amount spent on Easter festivals in the United Kingdom (UK) exceeds 1.3 billion British pounds in 2022, an increase from the 1.22 billion British pounds spent last year. In the year 2019, this value amounted to 877 million pounds sterling.
  • During the Christmas holiday in 2021, overall sales (online and in-store) in the United Kingdom were around 84.7 billion British pounds, making this nation the top spender during the holiday season. 
  • Valentine’s Day revenue in the United Kingdom alone was expected to reach 990 million British pounds in 2022, a roughly 15% rise over last year.
  • In the United Kingdom, sales on Singles Day were predicted to climb by nearly 13% in 2021, resulting in nearly 1.72 billion British pounds, up from 1.52 billion British pounds the previous year.
  • Retail spending on Mother’s Day in the United Kingdom was expected to reach 1.34 billion British pounds in 2021, which is a lot more money than the last time.

Post-Covid eCommerce in the U.K.

The pandemic has shifted consumer behavior away from traditional outlets toward internet platforms, and demand for a wide range of products has shifted dramatically as a result of changes in the way people live their lives—

  • More than 20% of British customers plan to keep purchasing online after the pandemic.
  • In 2022, over 40% of all retail sales in the United Kingdom will be conducted online. It is important for businesses to focus on their consumers’ purchasing trips both online and offline in order to succeed or grow in today’s digital world.
  • In a survey by Statista, the age group 16–24 was the most inclined to purchase clothing, with 33% of respondents indicating that they were likely or extremely likely to do so. In general, younger buyers showed a greater desire to make purchases following the lockdown.
  • eCommerce sales in the United Kingdom will account for 36.3% of all retail sales by 2022.
  • In the United Kingdom, only 3.5% of buyers who browse products on mobile devices make a purchase.

Retail in the United Kingdom is evolving because of these emerging eCommerce technology trends

emerging eCommerce technology trends

Digital payment

With business-to-business eCommerce sales growing all over the world, digital wallets have the power to make the checkout process even better. The customers will have a better experience and more sales as a result.

According to Baymard, 21% of shoppers give up on their carts because the process takes too long or is too confusing. 6% of people left because there weren’t enough ways to pay.


Humanizing your business is critical as more and more people contact brands via digital means. It is possible to create an amazing customer experience with the correct use of chatbots.

A whopping 59% of companies are currently using chatbots, with eCommerce reaping the greatest benefits.77% of the most successful organizations use chatbots to generate leads.

You may use chatbots to provide an instant, bias-free, personalized, and cost-effective solution to your customer’s demands now.

Subscription-based eCommerce

Consumers can sign up for regular deliveries of goods and services through an eCommerce business model known as subscription-based. According to the service, demand, and client base, the various subscription options are developed with great care.

Users can customize their service subscriptions based on their specific requirements. Subscriptions are based on the value they provide.

The subscription eCommerce model improves customer interactions, increases customer loyalty, and provides numerous other business benefits, providing a steady income flow.

Final thought

For both domestic and foreign firms, the UK eCommerce market offers a plethora of possibilities. Companies are increasingly interested in expanding into the UK since it is a technologically advanced region that readily adopts the latest technologies.

For more than a decade, Paxcom has worked with some of the world’s most well-known companies to help them realize their online retail potential. Several of Paxcom’s services, including eCommerce promotions management, content & design, brand shop construction, eCommerce advertising, and tailored data analytics, are used by brands to increase their sales and reach in this region.

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