E-commerce companies flock to London and the South East

Tuesday, August 21, 2012 - 12:13 by Sarah Collinson

The majority of UK companies that operate in the e-commerce market are based in the South East or the capital, according to research published by analysts at Berg.

Thirty two of the country's 50 fastest developing e-commerce firms can be found in this area, with the North of England, Wales, Scotland and Northern Ireland being far less well represented.

The report suggests that companies that deal with very technical industries, such as safe shopping online, are more likely to base themselves in the south for a number of reasons.

Spokesperson, Tim Leigh, said that one factor that made London and the South East attractive was the availability of excellent infrastructure, both in terms of transport and when it comes to broadband connectivity.

Various reports have established the fact that the south of the UK is better connected than the north, with faster broadband services available which, in turn, leads to digital businesses setting up shop.

Of course, from the point of view of customers, the location of the companies that offer safe shopping online is less relevant, since e-commerce is all about offering consumers the opportunity to purchase products, no matter where they happen to live.

Mr Leigh said that, ideally, it would be possible to redress the balance and get more regions of the UK involved in the e-commerce boom, by encouraging companies to operate in areas where investment is being made in the broadband infrastructure.

The government is funding the rollout of high speed broadband connections in many areas, attempting to plug the gaps where private telecoms providers are unable to feasibly cover the cost of this process.

This should make it easier for e-commerce businesses to spread to all areas of the UK, while also giving customers better access to safe shopping online.