Dublin, Feb. 03, 2026 (GLOBE NEWSWIRE) — The “United Kingdom B2C Ecommerce Market Size & Forecast by Value and Volume Across 80+ KPIs – Databook Q4 2025 Update” report has been added to ResearchAndMarkets.com’s offering.
The ecommerce market in United Kingdom is expected to grow by 7.4% annually, reaching US$335.67 billion by 2025. The ecommerce market in the region has experienced robust growth during 2020-2024, achieving a CAGR of 7.2%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.5% from 2025 to 2029. By the end of 2029, the ecommerce market is projected to expand from its 2024 value of US$312.48 billion to approximately US$431.12 billion.
Competitive intensity is expected to rise as cross-border platforms target UK share, while domestic retailers pursue margin recovery through private-label expansion, retail media, and supply-chain optimisation. Online grocery competition may tighten as Ocado Retail’s automation investments mature and traditional grocers deepen click-and-collect networks. Marketplaces will continue diversifying into advertising and payments, increasing ecosystem effects. Regulatory scrutiny of imported goods, product safety, and platform accountability may influence the operating models of new entrants.
Current State of the Market
- The UK ecommerce market is characterised by high competitive intensity, with established retailers, marketplaces, and rapidly growing cross-border entrants operating across overlapping categories. Online penetration remains stable, but competition has shifted toward pricing, fulfilment speed, and loyalty ecosystems.
- Traditional retailers such as Tesco, Sainsbury’s, and M&S leverage their store networks for omnichannel fulfilment, while Amazon continues to expand Prime benefits and logistics capacity. Growing consumer focus on value has widened demand for discount-driven platforms, intensifying pressure on general merchandise and apparel categories.
Key Players and New Entrants
- Amazon UK remains the market leader in general merchandise and electronics, supported by an extensive logistics footprint. Tesco, Sainsbury’s, Ocado Retail, and Asda dominate the online grocery market, each investing in store-based picking or automated fulfilment hubs. In apparel, Next, ASOS, Boohoo, and M&S compete with fast-growing cross-border players.
- Newer entrants such as Temu and Shein continue to scale UK operations, increasing brand visibility through app-based engagement and social media-driven traffic. In consumer electronics, Currys maintains a strong ecommerce presence while expanding refurbished device offerings. Deliveroo, Uber Eats, and Eat Takeaway are expanding into rapid delivery and online food services, increasingly integrating retail partnerships.
Key Trends and Drivers
Retailers Accelerate Omnichannel Integration Across Stores and Ecommerce
- Major UK retailers are strengthening their store-to-online integration. Tesco, Sainsbury’s, John Lewis, M&S, and Boots have expanded services such as click-and-collect, ship-from-store, and in-store return stations. John Lewis 2024-2025 transformation update highlights continued investment in unified inventory and faster fulfilment. M&S has continued to scale store-picked online grocery fulfilment following its partnership with Ocado Retail.
- Omnichannel fulfilment will deepen as retailers rely on store networks to manage last-mile logistics and profitability. More retailers are expected to expand micro-fulfilment use inside stores, rationalise underperforming branches, and create unified loyalty ecosystems similar to Tesco Clubcard and Boots Advantage Card.
International Marketplaces Expand Share Through Price-Driven and Category-Expansion Strategies
- Temu, Shein, and AliExpress are expanding aggressively in the UK, increasing consumer visibility across apparel, lifestyle goods, electronics accessories, and homeware. The UK Parliament’s 2024 discussions on cross-border marketplace regulation specifically reference Temu and Shein regarding product safety and import oversight. Amazon UK remains dominant but faces growing competitive pressure in value-priced categories.
- Price-sensitive UK consumers, especially during a prolonged cost-of-living squeeze, are shifting demand toward lower-priced imported goods. Marketplace mobile apps have expanded their UK user base through promotions and logistics partnerships with UK parcel carriers. Retailers such as Next, John Lewis, and the Very Group have publicly stated that competition from fast-growing cross-border platforms is reshaping pricing in discretionary categories.
- Competitive intensity in fashion, homeware, and small electronics will heighten. Increased scrutiny from UK regulators on product safety, labour practices, and import thresholds may change the operating landscape, but consumer adoption is expected to remain strong due to price advantages. UK retailers will likely adjust assortments, private-label sourcing, and pricing more frequently to compete.
Retail Media Adoption Expands as UK Retailers Monetise First-Party Data
- Large UK retailers are scaling their retail media networks and leveraging first-party customer data. Tesco’s 2024 Connect Media expansion, Boots Media Group’s ongoing growth, and Sainsbury’s Nectar360 enhancements illustrate increasing investment. Delivery-focused platforms such as Uber Eats UK and Deliveroo have also expanded advertising formats in 2024.
- Privacy-led changes in digital advertising, including the phase-out of third-party cookies, have shifted spend toward retailer-owned inventory, where purchase data is verifiable. UK advertisers increasingly require measurable ROI, and retail media provides closed-loop attribution. Retailers also rely on media revenue to offset margin pressures from logistics, returns, and promotions.
- Retail media will become embedded across ecommerce journeys, with more on-site, in-app, and in-store digital screens. As retailers integrate loyalty and online data, media inventory will expand. More FMCG brands are expected to shift budget from traditional digital channels to retail-owned media environments, increasing monetisation opportunities for leading UK retailers.
UK Consumers Prioritise Value, Leading to Shifts in Category Mix and Retailer Strategies
- Consumer focus on value has reshaped online spending patterns. Discounters such as Aldi and Lidl, though not fully ecommerce-driven, are influencing expectations for pricing and promotions. Among ecommerce players, ASDA, Tesco, and Sainsbury’s have expanded value-tier SKUs and subscription-based savings. In electronics and appliances, retailers like Currys have increased refurbished product offerings, responding to demand for lower-cost alternatives.
- The UK’s prolonged inflationary environment and rising household costs in 2023-2024 have led to more cautious discretionary spending. Retailers have publicly reported shifts toward essentials and value ranges in their quarterly earnings reports. Sustainability-driven behaviour has also encouraged consumers to consider refurbished and repair options, as evidenced by marketplace expansions such as eBay UK’s refurbished partnerships.
- Value-centric behaviour will continue influencing promotion intensity and assortment changes. Refurbished product categories are expected to expand further as major retailers invest in recommerce capabilities. Private-label penetration is likely to increase across grocery and general merchandise as retailers try to protect margins and retain price-sensitive customers.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 110 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $335.67 Billion |
| Forecasted Market Value (USD) by 2029 | $431.12 Billion |
| Compound Annual Growth Rate | 6.5% |
| Regions Covered | United Kingdom |
Report Scope
United Kingdom B2C Ecommerce Market Size and Growth Dynamics
- Gross Merchandise Value
- Gross Merchandise Volume
- Average Value per Transaction
United Kingdom Social Commerce Market Size and Growth Dynamics
- Gross Merchandise Value
- Gross Merchandise Volume
- Average Value per Transaction
United Kingdom Quick Commerce Market Size and Growth Dynamics
- Gross Merchandise Value
- Gross Merchandise Volume
- Average Value per Transaction
United Kingdom B2C Ecommerce Market Segmentation by Ecommerce Vertical
- Retail Shopping
- Travel & Hospitality
- Online Food Service
- Media & Entertainment
- Healthcare & Wellness
- Technology Products & Services
- Other
United Kingdom B2C Ecommerce Market Segmentation by Retail Shopping Category
- Clothing, Footwear & Accessories
- Health, Beauty & Personal Care
- Food & Beverage
- Appliances & Electronics
- Home Improvement
- Books, Music & Video
- Toys & Hobby
- Auto Parts & Accessories
- Other
United Kingdom B2C Ecommerce Market Segmentation by Retail Shopping Sales Channel
- Platform-to-Consumer
- Direct-to-Consumer
- Consumer-to-Consumer
United Kingdom B2C Ecommerce Market Segmentation by Travel & Hospitality Category
- Air Travel
- Train & Bus
- Taxi & Ride-Hailing
- Hotels & Resorts
- Other
United Kingdom B2C Ecommerce Market Segmentation by Travel and Hospitality Sales Channel
- Air Travel- Aggregator App
- Air Travel- Direct-to-Consumer
- Train & Bus- Aggregator App
- Train & Bus- Direct-to-Consumer
- Taxi & Ride-Hailing- Aggregator App
- Taxi & Ride-Hailing- Direct-to-Consumer
- Hotels & Resorts- Aggregator App
- Hotels & Resorts- Direct-to-Consumer
- Other- Aggregator App
- Other- Direct-to-Consumer
United Kingdom B2C Ecommerce Market Segmentation by Online Food Service Sales Channel
- Aggregator App
- Direct-to-Consumer
United Kingdom B2C Ecommerce Market Segmentation by Media & Entertainment Sales Channel
- Streaming Services
- Movies & Events
- Theme Parks & Gaming
- Other
United Kingdom B2C Ecommerce Market Segmentation by Engagement Model
- Website-Based
- Live Streaming
United Kingdom B2C Ecommerce Market Segmentation by Location
United Kingdom B2C Ecommerce Market Segmentation by Device
United Kingdom B2C Ecommerce Market Segmentation by Operating System
- iOS / macOS
- Android
- Other Operating Systems
United Kingdom B2C Ecommerce Market Segmentation by City Tier
United Kingdom B2C Ecommerce Market Segmentation by Payment Instrument
- Credit Card
- Debit Card
- Bank Transfer
- Prepaid Card
- Digital & Mobile Wallet
- Other Digital Payment
- Cash
United Kingdom B2C Ecommerce Consumer Demographics & Behaviour
- Market Share by Age Group
- Market Share by Income Level
- Market Share by Gender
United Kingdom B2C Ecommerce User Statistics & Ratios
- Internet Users
- Ecommerce Users
- Social Media Users
- Smartphone Penetration
- Banked Population
- Ecommerce Per Capita
- GDP Per Capita
- Ecommerce as % of GDP
- Cart Abandonment Rate
- Product Return Rate
United Kingdom B2C Ecommerce Operational Metrics by Ecommerce Segment
- Gross Merchandise Value by Segment
United Kingdom B2C Ecommerce Operational Metrics by Retail Shopping Category
- Gross Merchandise Value by Category
United Kingdom B2C Ecommerce Operational Metrics by Sales Channel
- Gross Merchandise Value by Channel
United Kingdom B2C Ecommerce Operational Metrics by Location
- Gross Merchandise Value by Location
United Kingdom B2C Ecommerce Operational Metrics by Device
- Gross Merchandise Value by Device
United Kingdom B2C Ecommerce Operational Metrics by Operating System
- Gross Merchandise Value by Operating System
United Kingdom B2C Ecommerce Operational Metrics by City Tier
- Gross Merchandise Value by City Tier
United Kingdom B2C Ecommerce Operational Metrics by Payment Instrument
- Gross Merchandise Value by Payment Instrument
For more information about this report visit https://www.researchandmarkets.com/r/z32ztf
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- United Kingdom B2C Ecommerce Market
