UK E-commerce Market Size (2024 - 2029)

The market size of the UK e-commerce sector is anticipated to grow significantly in the coming years, driven by consumer preference for online shopping. The market is buoyed by investments from internet-focused enterprises and traditional businesses transitioning to digital platforms. The growth is also fueled by consumers seeking value for money and the convenience of shopping for a range of products online. The rise in social networking and mobile internet access is expected to further boost e-commerce, with businesses investing more in social media marketing. Despite this, concerns about potential market fragmentation and anti-competitive behavior persist. The recent COVID-19 outbreak has also impacted the retail industry, prompting a shift to online platforms and further increasing the market size of e-commerce.

Market Size of UK E-commerce Industry

UK E-commerce Market Summary
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

UK E-commerce Market 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
Market Segmentation - by Application
Beauty & Personal Care
Consumer Electronics
Fashion & Apparel
Food & Beverage
Furniture & Home
Others (Toys, DIY, Media, etc.)
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.

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UK E-commerce Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Key Market Trends and Share of E-commerce of Total Retail Sector

    4. 1.4 Impact of Macro Economic trends on the E-commerce Sales

  2. 2. Market Segmentation

    1. 2.1 By B2C E-commerce

      1. 2.1.1 Market size (GMV) for the Period of 2018-2028

      2. 2.1.2 Market Segmentation - by Application

        1. 2.1.2.1 Beauty & Personal Care

        2. 2.1.2.2 Consumer Electronics

        3. 2.1.2.3 Fashion & Apparel

        4. 2.1.2.4 Food & Beverage

        5. 2.1.2.5 Furniture & Home

        6. 2.1.2.6 Others (Toys, DIY, Media, etc.)

    2. 2.2 By B2B E-commerce

      1. 2.2.1 Market size for the Period of 2018-2028

UK E-commerce Market Size FAQs

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.

In 2024, the UK E-commerce Market size is expected to reach USD 280.55 billion.

UK Ecommerce Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)