eCommerce market in the UK

The United Kingdom is the 3rd largest market for eCommerce with a predicted revenue of US$169,494.4 million by 2024, placing it ahead of South Korea. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 6.4%, resulting in a projected market volume of US$217,520.8 million by 2028. With an expected increase of 7.7% in 2024, the UK eCommerce market contributed to the worldwide growth rate of 10.4% in 2024. Like in the United Kingdom, global eCommerce sales are expected to increase over the next years. Seven markets are considered by ECDB within the UK eCommerce market. Fashion is the largest market and accounts for 28.4% of the UK eCommerce revenue. It is followed by Electronics with 16.5%, Hobby & Leisure with 15.6%, Grocery with 13.1%, Furniture & Homeware with 9.6%, Care Products with 9.3%, and DIY with the remaining 7.4%.

Market development

eCommerce revenue development in the UK

The United Kingdom is the 3rd largest market for eCommerce with a predicted revenue of US$169,494.4 million by 2024, placing it ahead of South Korea. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 6.4%, resulting in a projected market volume of US$217,520.8 million by 2028. With an expected increase of 7.7% in 2024, the UK eCommerce market contributed to the worldwide growth rate of 10.4% in 2024. Like in the United Kingdom, global eCommerce sales are expected to increase over the next years. Seven markets are considered by ECDB within the UK eCommerce market. Fashion is the largest market and accounts for 28.4% of the UK eCommerce revenue. It is followed by Electronics with 16.5%, Hobby & Leisure with 15.6%, Grocery with 13.1%, Furniture & Homeware with 9.6%, Care Products with 9.3%, and DIY with the remaining 7.4%.

eCommerce revenue development in the UK

in million US$

eCommerce revenue growth in the UK

in %

Net eCommerce revenue split by sub-category

in %
2020 2021 2022 2023 2024 2025 2026 2027
Revenue (in mUS$) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Growth (in %) 55.7 49.2 33.1 72.3 43.1 53.2 68.7 53.4

Online share

eCommerce online share in the UK

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the UK retail market, the online share is 26.7% and will increase by an average of 4.0% to 31.2% by 2028.

eCommerce online share in the UK

in %
2020 2021 2022 2023 2024 2025 2026 2027
Online share (in %) 96.5% 37.4% 95.9% 19.5% 81.6% 40.8% 55.0% 25.9%

Top stores

Top five online stores in the UK by net sales 2023

The biggest player in the UK eCommerce market is amazon.co.uk. The store had a revenue of US$16,112.7 million in 2023. Store rankings include every store that generates revenue 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 the United Kingdom was considered.

eCommerce net sales generated in the UK in 2023

in million US$
Filtered revenue / share
Global revenue
Growth
US$900.0m
20.7%
US$8,300.0m 8.3%
US$550.0m
12.0%
US$4,600.0m 12.4%
US$470.0m
3.9%
US$1,190.0m 33.6%
US$430.0m
20.6%
US$2,122.0m 18.0%
US$370.0m
20.7%
US$1,814.0m 12.6%

Payment Methods

Top 5 offered payment methods in the UK eCommerce market

With 97.1% VISA the most commonly offered payment method of all online stores in the UK eCommerce market in 2023. Like VISA Mastercard with a share of 97.1% and American Express with a share of 61.5% the payment type Cards is the most common used by online retailers in in the UK eCommerce market in 2023. Other commonly used payment methods in that market are PayPal (E-wallets) with 82.1% and Apple Pay (E-wallets) with 19.8% of stores offering that payment method to the clients.

Top 5 offered payment methods in the UK eCommerce market

in %

See all stores offering


Shipping Service Provider

Top 5 offered shipping providers in the UK eCommerce market

Despite Royal Mail's dominant position with 56.8% of online stores opting for its services, the UK eCommerce market in 2023 remains diverse and competitive. Several other shipping service providers, including DPD, DHL, UPS (United Parcel Service), and Parcel Force, hold smaller but significant shares, contributing to a dynamic and fragmented market.

Top 5 offered shipping providers in the UK eCommerce market

in %