E-commerce in the UK

The UK is made up of 65.6 million people, and that number is only going to increase in the coming years. It is ranked the 3rd largest e-commerce market in the world and in regards to money spent per shopper Britain’s citizens take first place, so it’s no surprise Brits like to buy their products online having so many different options. They expect their shopping to be quick, and straightforward. Stores must have an easy and simple package tracking option, and most importantly, stores must have good reviews and a friendly social media page. According to GuruFocus, “Sixty-eight percent of women say they consult product reviews before making a purchase, while 56% will look at social media pages or ask contacts on social networks for advice.” Therefore, businesses must not only focus on their customer service, prices, and how they present their products, but they also have to keep in mind customer’s opinions and how they are perceived through social media.

The chart below shows the value of internet retail sales from January 2013 to June 2017.

And it’s not just the younger generation, but everyone even aged 55+. According to eshopworld, “Dividing internet usage into age groups gives a better picture of the UK eCommerce market – 96% of 16-24 year-olds, 94% of 25-34 year-olds, and 95% of 35-44 year-olds log on daily. The older generations also log on regularly with 45-54 year-olds and over 55s showing a 90% and 74% daily penetration rate, respectively. These numbers prove that UK’s population, no matter what age are going ahead with the different advances being made in technology.

Predictions:

  • Studies show that by 2018, 18% of all retail sales will take place online and by 2040, it is thought 95% of purchases will be facilitated by e-commerce. (Nasdaq)
  • UK ecommerce exports are expected to hit a staggering £28 billion by 2020 as UK retailers are set to enjoy a trade hike that will outdo the US and Germany by a long stretch. (Strategy-plus)
  • Shoes and clothes e-commerce revenues in the UK are expected to grow from about 21 billion U.S. dollars in 2016 to about 32 billion in 2020. (Statista)
  • M-commerce sales are predicted to hit £25.2 billion this year (2016)and will experience double-digit growth to hit £42.5 billion in 2020. (Frontier Magazine)
  • 2016 marked the first month where over 50% of online purchases involved a smartphone – making it truly the year of ‘mobile-first’. However by 2020 80% of e-commerce purchases are expected to involve a smartphone. (OC&C)

There are many predictions concerning the UK in the next couple of years, which is promising for their country, especially concerning mobile shopping. This further supports the idea that Brits like to simplify their internet shopping ways and to do so they have turned to mobile applications. “E-commerce and m-commerce are on the rise. In 2014, mobile comprised 11.6% of the US’ $303 billion in e-commerce sales. BI Intelligence forecasts that by 2020, mobile will account for 45% of the $632 billion in total e-commerce sales. “ This is excellent news not only for their economy, but also for businesses which are constantly investing in their websites and customer service automation trying to make customer service as simple, quick, and pain-free as possible. Tablets and computers are also in the top three devices used in the UK for online shopping. Like stated before, Brits like to get their shopping done as quick as possible without leaving their home or running around shopping malls. I’m not surprised since the rest of the world is getting on the “online shopping bandwagon” then why should the UK be any different ??

http://www.nasdaq.com/article/uk-online-shopping-and-e-commerce-statistics-for-2017-cm761063
http://www.businessinsider.com/mobile-sales-drive-unexpected-uk-e-commerce-growth-2017-1?IR=Thttps://www.eshopworld.com/blog-articles/uk-ecommerce-insights-2017/
https://www.frontiermagazine.co.uk/news/uk-world-leader-in-e-commerce-retail-sales-28-06-2016/
https://www.strategy-plus.net/uk-ecommerce-set-top-exports-28b-2020/