The Office for National Statistics is always a fascinating source of information, particularly pertaining to the behaviour of Brits throughout the UK.

One of the most interesting recent findings suggested that 97% of those aged 16-34 shopped online in 2019, as ecommerce became an increasingly dominant marketplace in the UK.

Not only this, but more than half of UK customers now shop regularly online, whilst the total virtual spend on these shores is forecast to increase by 29.6% between 2019 and 2024 according to analysts and GlobalData.

When you consider this alongside the decline of the traditional high street in the UK, it’s clear that the value of ecommerce is set to grow at an exponential rate in the near-term. But is this trend likely to continue, and what are the other factors that contribute to such growth?

The Rise of Amazon in the UK

In addition to the decline of the high street (which may be either a cause or a symptom of ecommerce growth), the incredible rise of Amazon is also a key consideration for brands.

Make no mistake; Amazon increased its ecommerce market share in the UK from 28.8% in 2018 to 30.1% in 2019, generating staggering $30 billion (£22.9 billion) in the process.

To put this into context, the next biggest ecommerce player in the UK is eBay, which takes a paltry 9.8% share of the online marketplace. This is followed by Sainsbury’s (4.6%) and Tesco (4.5%) respectively, putting the dominance and influence into clear perspective for online brands.

This has helped to establish the UK as the world’s third largest ecommerce market behind China and the U.S., accounting for $101 billion (£77.3 billion) in 2019.

This at least partially explains why the market share of online retail is expected to peak at 29.6% in 2024, as brick-and-mortar retail gradually becomes a thing of the past.

It’s Easier Than Ever for Entrepreneurs an Online Business

Of course, both the Amazon and eBay platforms have made it easier than ever for businesses to sell their products online, while they’re part of a wave of innovation that has empowered ecommerce firms.

The success of these platforms has also inspired a number of similar entities to emerge in recent times, as reported in a fascinating blog post by Parcel 2GO. Take Etsy, for example, which was established in 2005 and now boasts monthly traffic in excess of 201 million.

Interestingly, this site offers more affordable listing fees and commission terms to new sellers, which has created a competitive marketplace and empowered more startups to launch online.

For example, Etsy users can list products for just £0.16 per item (as opposed to £0.75 on Amazon), while the site only applies a commission of 3.5% per sale (the corresponding number for Amazon is 15% with a £1 minimum payment).

Bonanza offers a similar alternative, which boasts slightly lower monthly traffic of 5.5 million and allows users to list items for free (although there is a nominal sales commission of 3.5%).

Like Etsy, this site also enables users to market and sell a diverse range of niche and mainstream products for less, potentially optimising both turnover and profitability in the process.

These resources have undoubtedly contributed heavily to the growth of online sales in the UK, thanks to their accessibility, ease of use and increasingly competitive nature.