Market Size of UK E-commerce Industry
![UK E-commerce Market Summary](https://s3.mordorintelligence.com/united-kingdom-ecommerce-market/1708678858259_united-kingdom-ecommerce-market_Market_Summary.webp)
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 280.55 Billion |
Market Size (2029) | USD 750.80 Billion |
CAGR (2024 - 2029) | 21.76 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
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UK Ecommerce Market Analysis
The UK E-commerce Market size is estimated at USD 280.55 billion in 2024, and is expected to reach USD 750.80 billion by 2029, growing at a CAGR of 21.76% during the forecast period (2024-2029).
In recent decades, e-commerce has become popular as consumers shift their spending to online shopping. The supply side has been expanded by investments from Internet-focused enterprises and sellers who built their businesses through physical channels. While traditional retail sales have remained flat, regional revenues from online shopping have skyrocketed.
- The rise of online retailing adds to the never-ending pursuit of value for money. Online shoppers continue to look for the best prices and deals, increasing the proportion of money spent online. For shoppers looking for health, fashion and beauty, consumer electronics, travel services, and home and garden, the internet has become the natural place to look.
- Consumers in the country are increasingly aware of online identity theft and will only conduct financial transactions on secure websites. Almost all UK online businesses accept credit or debit card payments. Mastercard and Visa are the most commonly accepted credit cards, while American Express, Diners Club, and JCB are less common. Several websites use Pay Pal and other similar services.
- With the continued rise of social networking and mobile internet access, businesses will likely increase their investment in e-commerce through social media marketing in the coming years. The benefits and strength of online sales contrast with the gloom in brick-and-mortar retailing, with physical stores filing for bankruptcy or administration.
- Expansion of E-commerce can raise competition in retail markets, increase consumer choice, and motivate and expedite product distribution innovation. However, several competition agencies' recent enforcement and advocacy work have revealed the possibility of anticompetitive behavior in the Internet context. Concerns about potential market fragmentation are thus significant among many organizations that have looked into the topic of e-commerce competition.
- The COVID-19 outbreak has long-term impacted the retail industry, influencing consumer purchasing habits and store and brand priorities. For example, companies have shifted to the online platform as consumers have become more reliant due to several store closures. Strong eCommerce companies like Amazon will undoubtedly benefit greatly from this.
UK Ecommerce Industry Segmentation
Conducting an e-commerce business means fostering relationships and selling information, services, and goods over computer communication networks. E-commerce usually refers to trading goods and services over the Internet, which means broader economic activity. E-commerce consists of B2B and B2C and internal organizational transactions that support these activities.
The United Kingdom E-commerce market is segmented by b2c e-commerce (beauty and personal care, consumer electronics, fashion and apparel, food and beverage, furniture and home) and b2b e-commerce.. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By B2C E-commerce | ||||||||
Market size (GMV) for the Period of 2018-2028 | ||||||||
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By B2B E-commerce | |
Market size for the Period of 2018-2028 |
UK E-commerce Market Size Summary
The UK e-commerce market is projected to experience significant growth in the coming years. The market is being driven by a shift in consumer spending habits towards online shopping, with a particular focus on value for money. This has been facilitated by the expansion of the supply side, with investments from internet-focused enterprises and sellers who previously operated through physical channels. Despite concerns about online identity theft, consumers are increasingly conducting financial transactions on secure websites, with credit and debit card payments widely accepted. The rise of social networking and mobile internet access is also expected to lead to increased investment in e-commerce through social media marketing. In terms of market trends, the use of alternative payment methods is becoming increasingly popular, driving the growth of e-commerce sales. Contactless payments, buy now pay later options, and bank transfer services are among the alternative methods being used. The fashion and apparel segment is expected to contribute a significant share to the market, with technological applications driving the market in this area. The UK e-commerce industry is fragmented, with many players, but a few prominent ones such as Amazon UK hold a considerable market share. The growth of the e-commerce industry is also encouraging the development of distribution centers across the country.
Explore MoreUK E-commerce Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness-Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers/Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Key Market Trends and Share of E-commerce of Total Retail Sector
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1.4 Impact of Macro Economic trends on the E-commerce Sales
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2. Market Segmentation
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2.1 By B2C E-commerce
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2.1.1 Market size (GMV) for the Period of 2018-2028
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2.1.2 Market Segmentation - by Application
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2.1.2.1 Beauty & Personal Care
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2.1.2.2 Consumer Electronics
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2.1.2.3 Fashion & Apparel
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2.1.2.4 Food & Beverage
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2.1.2.5 Furniture & Home
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2.1.2.6 Others (Toys, DIY, Media, etc.)
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2.2 By B2B E-commerce
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2.2.1 Market size for the Period of 2018-2028
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UK E-commerce Market Size FAQs
How big is the UK E-commerce Market?
The UK E-commerce Market size is expected to reach USD 280.55 billion in 2024 and grow at a CAGR of 21.76% to reach USD 750.80 billion by 2029.
What is the current UK E-commerce Market size?
In 2024, the UK E-commerce Market size is expected to reach USD 280.55 billion.