e-commerce market across Europe, online shopping has become the norm for people everywhere in the United Kingdom (UK). In 2025, the country is expected to have about 52 million
.
Europe’s most profitable e-commerce market
Following the coronavirus pandemic, in 2020 internet retail sales in the UK grew by 47 percent, the fastest rate recorded in the previous ten years. In contrast to this steep growth resultant from the pandemic, the UK’s e-commerce retail sales growth hit a negative in 2022, likely a direct impact of inflation and other global current events. From 2023 onwards, however, the figure has begun to find its foothold once again, and the revenue of e-commerce in the UK is still expected to grow steadily in the coming years across all segments.
Online retailing is particularly strong in the fashion sphere, which consistently amasses the most revenue among the measured segments each year. The most recent government figures also show that over one-fourth of retail sales from textile, clothing, and footwear stores come from online channels. By revenue, food and consumer electronics were the next highest grossing categories in terms of revenue, with leading brands like Tesco, Uber Eats,Amazon, and Apple at the forefront of their respective industries.
Shopping behavior in the UK
In spite of the high penetration rate of e-commerce in the country, there are still specific aspects of online shoppers that attract and dissuade purchases alike. Across categories, the most important criteria for UK consumers to make online purchases were: low prices, free delivery, and the brand of product. Customer reviews, free returns, and express shipping were also important to the online consumer decision journey. Delivery fees and return fees are unsurprisingly among the top barriers preventing online purchases in the country.
However, with predictions for e-commerce segments to continue growing, even the most deterring barriers against shopping online will not significantly change the sheer size of the UK’s e-commerce market. Countless online businesses will continue to make use of new technologies like generative AI and adapt to consumer interests, keeping the UK e-commerce market buoyant for years to come.
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