e-Commerce Market Analysis

The eCommerce market in the UK

The United Kingdom is the fourth largest market for eCommerce with a revenue of US$82 billion in 2019, placing it ahead of Germany and behind Japan.

With an increase of 8%, the UK eCommerce market contributed to the worldwide growth rate of 16% in 2019. Revenues for eCommerce continue to increase. New markets are emerging, and existing markets also have the potential for further development. Global growth will continue over the next few years. This will be propelled by East and Southeast Asia, with their expanding middle class and lagging offline shopping infrastructure.

The eCommerce market includes online sales of physical goods to a private end user (B2C). Included in this definition are purchases via computer as well as mobile purchases via smartphones and tablets. Excluded from the definition of ecommerceDB are the following: digitally distributed services (e.g., travel tickets), online stores dedicated to digital media downloads or streams, online stores dedicated to B2B markets, and sales between private individuals (C2C) within the eCommerce market.

The eCommerce market in the UK

Top online stores

The biggest player in the UK eCommerce Market is amazon.co.uk. The store had a revenue of US$9.8 billion in 2019. It is followed by tesco.com with US$4.8 billion revenue and argos.co.uk with US$3.1 billion revenue. Altogether, the top three stores account for 20% of online revenue in in the United Kingdom.

Store rankings are based on every store that generates revenue in in the United Kingdom. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in in the United Kingdom was considered.

One of the fastest-growing stores in the UK market is gymshark.com. The store achieved sales of about US$0.2 billion in 2019. Its revenue growth amounted to 63% in the previous year.

Top online The eCommerce market stores in the UK by eCommerce net sales 2019 in million US$ The table shows the stores that generate the highest revenue in the UK market. For this evaluation, only revenue created in in the United Kingdom was considered. Basis are all shops on eCommerceDB that operate in in the United Kingdom.

# Store
1. amazon.co.uk US$9,756m
2. tesco.com US$4,638m
3. argos.co.uk US$3,132m
4. very.co.uk US$2,147m
5. johnlewis.com US$2,119m
The eCommerce market in the UK

Market size and growth rate

Revenue in 2019
US$82,402m
REVENUE
CAGR 2019-2023
6%
CAGR

Digital Market Outlook by Statista

The Digital Market Outlook presents up-to-date figures on markets of the digital economy. The comparable key figures are based on extensive analyses of relevant indicators from the areas of society, economy, and technology.
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Market expansion in in the United Kingdom is expected to continue over the next few years, as indicated by the Statista Digital Market Outlook. It has been predicted that the compound annual growth rate (CAGR 19-23) for the next four years will be 6%. Compared to the year-over-year growth of 8%, this decrease suggests a moderately flooded market. Another indicator of market saturation is the online penetration of 82% in in the United Kingdom; in other words, 82% of the UK population have bought at least one product online in 2019.

Five categories are considered by ecommerceDB. Fashion is the largest segment in in the United Kingdom and accounts for 34% of the eCommerce revenue in in the United Kingdom. This is followed by Toys, Hobby & DIY with 19%, Electronics & Media with 18%, Furniture & Appliances with 15% and Food & Personal Care with the remaining 15%.

The eCommerce market in the UK
Top shipping service providers

In in the United Kingdom, DPD is the most frequently offered delivery service provider among online stores. Of those stores that indicating which service they use to transport their goods, 29% cited DPD as one of their providers. Moreover, Hermes and DHL are among the top three shipping service companies offered by online retailers in in the United Kingdom, at rates of 15% and 14%.

Shipping information is based on orders from the store's main country, which is defined as the one where the store generates most of its online revenue. In this case, it is in the United Kingdom. Only stores that provide information about their shipping providers can be considered.

Competitor analysis of shipping service providers in the UK The table shows the most offered shipping providers in in the United Kingdom. Shipping information is based on orders from the store's main country, which is defined as the one where the store generates most of its online revenue. In this case, it is in the United Kingdom. Only stores that provide information about their shipping providers can be considered.

# Shipping service provider
1. DPD 29%
2. Hermes 15%
3. DHL 14%
The eCommerce market in the UK

Explore the competitive landscape