DUBLIN–(BUSINESS WIRE)– 
The UK e-commerce market is expected to grow at an annual rate of 7.32% to reach USD 335.3 billion in 2024. E-commerce is expected to grow steadily over the forecast period, registering a CAGR of 6.36% from 2024 to 2028. The UK e-commerce total merchandise value is expected to increase from USD 312.4 billion in 2023 to USD 429.1 billion by 2028.
In the UK, the B2C e-commerce market is expected to continue its steady growth in the medium term. Online retailers are taking measures to reduce operational costs and aim to ensure profitability in the next 3-4 years. Food delivery platforms are also looking to expand into other product categories to diversify revenue sources and accelerate growth.
In the medium term, global companies are also expected to expand their presence in the UK market, which will drive investment and a competitive environment in the sector in 2024. Despite short-term challenges, such as lower consumer spending and a rising inflationary environment, publishers maintain a positive outlook for the UK B2C e-commerce market over the next three to four years.
Regulators plan to ban hidden fees and fake reviews in the UK market in 2024
According to the UK Department of Business and Trade (DBT), reviews are used by 90% of consumers and contributed to £224 billion in spending in the online retail market in 2022. However, fake reviews have been widely adopted in the online commerce sector to drive increased product sales and revenue. To curb such practices and protect consumers, authorities are planning to ban fake reviews on online platforms in the UK.
In the new regulations, authorities also aim to ban unavoidable hidden fees, forcing businesses to be more transparent with customers. These changes will be implemented as part of the Digital Markets, Competition and Consumer Bill. According to the proposed regulations, mandatory fees will have to be included in the headline price or at the start of the shopping journey.
Retailers are imposing restocking fees on online purchases to offset rising shipping and handling costs.
Product returns have become a major issue for online commerce platforms. The skyrocketing return rates have negatively impacted the profitability of most retailers. As a result, companies have started charging restocking fees for online purchases to offset rising shipping and handling costs.
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H&M, for example, has announced that it will charge shoppers who want to return unwanted items bought online. The group revealed in September 2023 that it will charge £1.99 for returns of non-faulty or damaged goods by post. This fee will be deducted from the customer's refund unless they sign up for the company's free member loyalty scheme. H&M, however, will offer free returns in its stores.
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H&M is not the only retailer to introduce such a return policy: rival retailers including Zara, New Look, Uniqlo, Boohoo and Next have also introduced similar restocking fees. However, ASOS and Marks & Spencer continue to offer free returns to attract more shoppers. H&M plans to introduce restocking fees in more markets around the world in 2024, after launching in the UK in 2023.
Food delivery platforms are expanding into non-food product categories to accelerate their growth in 2024.
The food delivery sector has seen increased consolidation over the past 12 months, a trend that is likely to continue into 2024. As a result, in order to diversify revenue streams and accelerate growth, UK food delivery platforms are expanding into non-food areas.
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Deliveroo, one of the leading food delivery platforms, has announced its foray into non-food retail in November 2023. The expansion into categories such as toys, electronics, and other goods is part of its strategy to drive revenue and profit growth. The company notably launched Deliveroo Shopping on its app, which allows shoppers to purchase non-food items.
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The expansion into new product categories will put Deliveroo in competition with Amazon, which also holds a 14.13% stake in the food delivery company. In the medium term, the company expects total transaction value to grow at a mid-teens rate year-on-year. In the food delivery sector, Deliveroo competes with Uber Eats and Just Eat Takeaway in the UK market.
The report provides an in-depth data-centric analysis of e-commerce market dynamics across 100+ KPIs in the UK. It details the market opportunity across major B2C verticals (retail shopping, travel & hospitality, online food services, media & entertainment, healthcare & wellness, technology products & services). It presents the market share of key players across key verticals and sales channels (platform-to-consumer, direct-to-consumer, consumer-to-consumer). It also provides a snapshot of spending patterns by payment instrument and UK consumer behavior.
The report also covers niche trends such as livestreaming market size by engagement model and cross-border purchasing, as well as e-commerce spend share by operating system, device (mobile vs desktop) and city.
Additionally, the report provides in-depth data-centric analysis as well as analyst commentary on key trends, drivers, strategies and innovations in the UK e-commerce industry.
Featured Companies
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Amazon
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Argos
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Ebay
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Marks & Spencer (M&S)
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Tesco
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Deliveroo
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Domino's Pizza
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Gusto
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Anyway, eat it.
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Uber Eats
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Booking.com
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Expedia Group
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get
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Jet2Holiday
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Uber
Report Scope
The report provides an in-depth, data-driven analysis of the UK e-commerce industry, covering various segments and highlighting areas of interest across various verticals of the industry, while also providing a comprehensive understanding of market trends and future forecasts.
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The size of the UK e-commerce market and future growth trends
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UK user statistics and key performance indicators ratios
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UK E-commerce Market Share by Major Companies
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UK E-commerce Market Size and Forecast by E-commerce Segment (Total Merchandise Value Trend Analysis)
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UK E-commerce Market Size and Forecast by Retail Shopping Sales Channel
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UK E-commerce Market Share by Travel & Hospitality Sales Channel
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UK E-commerce Market Size and Forecast by Online Foodservice Sales Channel
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UK E-commerce Market Size and Forecast by Engagement Model (Total Merchandise Value Trend Analysis, 2019-2028)
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UK E-commerce Market Size and Regional Forecast (Total Merchandise Value Trend Analysis)
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UK E-commerce Market Size and Forecast by Device (Total Merchandise Value Trend Analysis)
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UK e-commerce market size and forecast by operating system
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UK e-commerce market size and forecast by city
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UK E-commerce Market Size and Forecast by Payment Method (Total Merchandise Value Trend Analysis, 2019-2028)
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Demographics of UK e-commerce consumers
For more information on this report, please visit: https://www.researchandmarkets.com/r/3qsp1n
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