UK e-commerce market grows by 20 per cent
09 July 2015 - 15:54 by Graham Miller
Purchases made online were up by a fifth over the course of 2015, according to the latest figures from Kantar Worldpanel.
This is a notable figure because, overall, the UK’s retail industry saw just a single percentage point of growth as a whole, indicating once again that the e-commerce market is propping up the high street.
Analysts estimate that the global value of online sales will reach $130 billion (£84.4 billion) a year by the time 2025 rolls around. This effectively means that e-commerce sales will double in a decade and the UK will continue to be a world leader in this area.
Internationally about a quarter of consumers carrying out safe shopping online regularly, but this is much higher in the UK and in particular it is supermarkets and major retail chains that are helping to push sales growth ever upwards.
Interestingly, the report also found that British consumers are likely to spend more when making a purchase online than when shopping on the high street.
The average e-commerce basket value is £43, whereas £10 is the limit for most bricks and mortar purchases.
There are a number of reasons for this discrepancy, not least of which is the fact that delivery services make it easier to get large, expensive items delivered to your home. There are also minimum spending requirements included for free delivery to be available with many retailers, including Amazon’s recent rise to £20, for eligibility for super saver delivery.
Almost a quarter of consumer spending in the UK is channelled through the same group of companies that people use regularly, indicating that there is a small but significant impact of loyalty felt in the market. But retailers can easily win over shoppers with the right offers.