Market Trends of UK E-commerce Industry
The increasing ease of using alternative payment methods will propel the market
- According to the Office for National Statistics (UK), internet sales accounted for 25.9% of all sales in household goods retailers in Great Britain in December 2022, an increase over the previous month. The ease of using alternate payment methods apart from traditional cash transactions is driving the growth of e-commerce sales in the country.
- Similarly to the rest of the developed world, nearly every financial transaction in the country is mediated by technology. However, unlike its counterparts, the UK market sees a significant percentage of purchases made using an alternative payment method. Consumers in the United Kingdom are increasingly making regular payments using contactless, buy now, pay later, and bank transfer services. For example, according to Worldpay, the market share of e-wallets or digital wallets in the United Kingdom in 2022 was 35%.
- Contactless payments are becoming more popular as a percentage of all transactions. Furthermore, the vast majority of these customers use mobile and tap cards. Google Pay and Apple Pay are two of the most popular contactless payment methods.
- Furthermore, the rise of mobile shopping in the country is increasing the popularity of eWallets. eWallet use is increasing at twice the rate of card use, with PayPal leading the way. In the UK, eWallet adoption may accelerate further as online shoppers embrace cross-border shopping with the rest of Europe.
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Fashion and Apparel to Occupy Significant Market Share
- A substantial share of the market is expected to be contributed by the Fashion and Apparel Segment by 2022. The monthly internet retail sales index of textiles, clothing, and footwear products in the United Kingdom (UK) reached a four-year high in December 2020, when the sales index stood at 217.5, according to the Office for National Statistics. Internet apparel sales fell to 113.6 index points in January 2022.
- Consumers in United Kingdom (UK) households have increased their clothing spending over time, exceeding GBP 62.2 billion in 2022, according to the Office of National Statistics.
- Fashion brands and retailers continue to use eCommerce technology for more interesting purposes. Customers who see models wearing an entire outfit can click on each item to add it to their cart or read more product information. Thanks to intelligent styling algorithms, attractive images, and occasionally human stylist input (AOV), fashion retailers have delivered brilliant brand discovery experiences and generated significant brand loyalty that engages consumers and raise average order value. Such technological applications will drive the market in the region.
- Finally, fashion customers want to find a product quickly. A simple and effective filter system improves the interface of an online store. Using the best filtering, customers can easily access additional areas of an online fashion business. As a result, buyers are able to find products that are similar to the ones they were looking for, while still enjoying the purchasing process. Fashion buyers can also use a variety of outlets to filter for themselves.
