UK E-commerce Market Outlook

The united kingdom (u.k.) is the fourth largest economy in the world, and e-commerce has become and integral part of the economy today. the u.k. e-commerce market has seen consistent growth in recent years, nearly doubling since 2011. this trend is expected to continue into the near future, with some estimates suggesting that the u.k. e-commerce market will reach close to £200 billion by 2032. additionally, the nature of this growth indicates that the u.k. is increasingly becoming an online shopping hub. in terms of physical goods, the u.k. e-commerce market was estimated to reach £118.1 billion in 2017, a considerable increase from the £51.6 billion in 2011. this figure is expected to increase as the total annual growth rate of the u.k. e-commerce market is predicted to hover around 5% over the next 15 years. meanwhile, digital services, such as online streaming and gaming, is also expected to see a significant increase in market share, rising to 10.4% in 2017, and reaching 15.4% by 2032. in order to understand the u.k. e-commerce market’s potential, it is important to look at the current trends. mobile commerce has been driving a large portion of this growth, accounting for almost one third of all online sales. this trend is only set to increase as more and more people become comfortable buying, and selling, goods online. similarly, customers will increasingly engage with businesses online, meaning that online marketing, search engine optimization, and other digital marketing campaigns will be increasingly important for businesses. with a population of 66.7 million people, the u.k. is also a relatively active market for social media users. this is an important factor when considering how businesses interact with consumers online. social media has the potential to be highly effective for businesses that are able to engage potential customers with the right content. overall, the outlook for u.k. e-commerce market is positive. supported by the uk’s growing population and its increasing presence on the global online market, the u.k. e-commerce market is expected to reach close to £200 billion by 2032. this growth will be driven by a combination of mobile commerce, digital services, and social media. these factors, combined with the increasing sophistication of consumers, suggests that businesses will have ample opportunity to engage potential customers in interesting and meaningful ways.