Investing in an e-commerce business can be highly profitable. The UK plays host to an advanced e-commerce market. With expectations that the revenue of the e-commerce industry in the United Kingdom is forecast to continuously increase by $85.7 billion within the next few years, there has never been a better time to invest.
It is true that you should always be sure to research extensively before you commit to buying. However, it is no secret that e-commerce businesses are proving to be popular investments. You will join a booming market of thriving businesses when you take the plunge and buy a business.
In this article, you will discover some of the best reasons to consider buying an e-commerce business in the UK.
Reasons to Consider an E-Commerce Business
The e-commerce sector is competitive, with approximately 24,000 UK entrepreneurs starting an e-commerce business in 2021 alone. In a booming market saturated with competition, should you consider investing in an e-commerce business in the UK? Absolutely!
Below are some of the best reasons why you should be considering an e-commerce business for your next investment:
The UK: The Most Profitable E-Commerce Market in Europe
Since 2014, the UK has consistently ranked the highest in Europe’s most lucrative e-commerce markets. For almost a decade, the UK’s retail sector has dominated countries like the Netherlands, Germany, France, Spain, and Italy, with almost 30% of retail sales in the United Kingdom being generated online.
The coronavirus pandemic resulted in internet retail sales in the UK growing by an unprecedented 47% in 2020. While it is true that the steep growth was due to the pandemic imposed in-person shopping restrictions, the UK’s e-commerce revenue is expected to continue to grow steadily in the coming years.
UK Consumer Shopping Habits
How does this market profitability translate into consumer behaviour? E-commerce businesses are not short of customers in the UK. In 2021 alone, 82% of the UK bought at least one product online.
The growth of online retailing is driving the pursuit of value for money. Consumers in the UK increasingly turn to online retailers for the best prices and deals they cannot find in stores. This need for UK consumers to search online for their favourite products has driven the increase in online spending, which has increased for the second consecutive year.
Consumers in the UK are also more likely to spend more when shopping online. In 2021, the average order value among online purchases in the UK was £102 spent on orders placed on desktop computers, £84 on tablets, and £79 on mobile phones.
Big Profits in UK E-Commerce Businesses
Some major players in the UK e-commerce market are making significant profits.
In 2021, big e-commerce retailers like Amazon UK had net e-commerce sales of approximately £14,000 million. Tesco.com followed with approximately £6,000 million. Sainsbury, Argos, John Lewis and many others made large e-commerce sales worth thousands of millions of GBP.
Cross-Border Purchases
Consumers in the UK and Europe are no strangers to cross-border shopping. Even after Brexit, UK and European consumers are making purchases online from European companies.
Online shoppers in the UK, France, and Italy have proven that they will happily buy from merchants outside their home countries. 87% of UK consumers say they shop cross-border, while 90% of consumers in EU members France and Italy say they shop cross-border.
Over 30% of consumers regularly make their online purchases cross-border. Therefore, it is clear that investing in a UK e-commerce business will open opportunities for customers across Europe and the wider world to benefit from the products and services you offer.
In Conclusion
As you can see, an e-commerce business is a great investment. Not only is the UK the most profitable e-commerce market in Europe, but consumers are also increasingly gearing their shopping habits in favour of online purchases. Combined with the enormous profits from companies already operating in the UK and the chance for cross-border shopping, there has never been a better time to invest.
If you are looking to start an e-commerce business, be sure to continue to read about this thriving sector. Discover how your new e-commerce venture can be part of Europe’s most lucrative e-commerce market.
