E-commerce in the United Kingdom (UK) - statistics & facts
With the most advanced and undeniably most lucrative e-commerce market across Europe, online shopping has become the norm for people everywhere in the United Kingdom (UK). In 2026, the country is forecast to have about 55 million e-commerce users, leaving non-digital buyers as a minority of the total population.
Europe's most profitable e-commerce market
Following the coronavirus pandemic, in 2020 internet retail sales in the UK grew by 47 percent, the fastest rate recorded in the previous ten years. In contrast to this steep growth resulting from the pandemic, the UK's e-commerce retail sales growth hit a negative in 2022, likely a direct impact of inflation and other global current events. From 2023 onwards, however, the figure has begun to find its foothold once again, and the revenue of e-commerce in the UK is still expected to grow steadily in the coming years across all segments.
Online retailing is particularly strong in the fashion sphere, which consistently amasses the most revenue among the measured segments each year. Government figures also show that close to 30 percent of retail sales from textile, clothing, and footwear stores come from online channels. By revenue, food and consumer electronics were the next highest-grossing categories, with Amazon, Tesco, and eBay among the top online stores in the country overall.
Online research, offline hesitations
In spite of the high penetration rate of e-commerce in the country, there are still specific aspects of online shopping that attract and dissuade purchases alike. Clothing and shoes are the most popular categories for online purchases, and a majority of consumers say they research products online before making a major purchase. Customer reviews, free returns, and express shipping also factor into the online consumer decision journey. High shipping costs and long delivery times remain common reasons shoppers hold back from buying online.
However, with predictions for e-commerce segments to continue growing, even the most deterring barriers against shopping online will not significantly change the sheer size of the UK's e-commerce market. Online retailers are increasingly tapping into new technologies like generative AI; AI tools are already directing shoppers to leading retail websites, keeping the UK e-commerce market buoyant for years to come.
