e-Commerce Market Analytics

The eCommerce market in the U.K.

The United Kingdom is the fourth largest market for eCommerce with a revenue of US$117.7 billion in 2021, placing it ahead of Germany and behind Japan.

With an increase of 12%, the UK eCommerce market contributed to the worldwide growth rate of 15% in 2021. Just like in the United Kingdom, global eCommerce sales are expected to increase over the next years. As new markets are emerging, global growth will continue over the next years. This development will be propelled by East and Southeast Asia with their growing middle class and their lagging offline infrastructure.

With a yearly growth rate of 3% between 2021 and 2025, the United Kingdom is expected to grow at a slower rate than the global average of 6%.

The eCommerce market in the U.K.

Top online stores

The biggest player in the UK eCommerce market is amazon.co.uk. The store had a revenue of US$17.1 billion in 2021. amazon.co.uk is followed by tesco.com and argos.co.uk as the second- and third largest stores with US$9.5 billion and US$6.3 billion, respectively. Altogether, the top three stores account for 30% of online revenue in the United Kingdom.

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.

One of the fastest-growing stores in the UK market is rutlands.com. The store achieved online net sales of about US$3.6 million in 2021. Its revenue growth amounted to 432% in the previous year.

More information on the top 500 online stores in the United Kingdom can be found in our ecommerceDB Country Report.

Growth champions:
Editorial tips:

Top online eCommerce stores in the U.K. by eCommerce net sales 2021 in million US$

# Store
1. amazon.co.uk
2. tesco.com
3. sainsburys.co.uk
4. argos.co.uk
5. johnlewis.com

The eCommerce market in the U.K.

Market size and growth rate

Revenue in 2021
CAGR 2021-2025
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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The eCommerce market in the United Kingdom is expected to increase over the next few years, as indicated by the Statista Digital Market Outlook. It has been predicted that the compound annual growth rate for the next four years (CAGR 21-25) will be 3%. Compared to the year-over-year growth of 12% between 2020 and 2021, this decrease in yearly growth suggests a moderately flooded market. An other indicator of market saturation is the online penetration of 82% in the United Kingdom; in other words, 82% of the UK population have bought at least one product online in 2021.

Five categories are considered by ecommerceDB. Fashion is the largest segment in the United Kingdom and accounts for 31% of the eCommerce revenue in the United Kingdom. It is followed by Toys, Hobby & DIY with 19%, Electronics & Media with 18%, Food & Personal Care with 17%, and Furniture & Appliances with the remaining 15%.

The eCommerce market in the U.K.

Top shipping service providers

In the United Kingdom, Royal Mail is the most frequently offered delivery service provider among online stores. Of those stores indicating which service they use to transport their goods, 36% cited Royal Mail as one of their providers. Moreover, DPD and Hermes are among the top three shipping service companies offered by online retailers in the United Kingdom, at rates of 29% and 22%.

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. As a result, only stores that generate more net sales in the United Kingdom than in any other country are taken into account. Furthermore, only stores that provide information about their shipping providers can be considered.

Competitor analysis of shipping service providers in the U.K.

# Shipping service provider
1. Royal Mail
2. DPD
3. Hermes

The eCommerce market in the U.K.

Explore the competitive landscape