With the COVID-19 pandemic finally winding down, 2021 sounds like a hectic year for eCommerce, particularly in the United Kingdom.
Will your business be able to capitalize on the inevitable changes, or are you not prepared yet?
Find out more about the upcoming shopping statistics for the new year. It might encourage you to invest in ecommerce platforms or find yourself a top ecommerce company to get the most out of the post-COVID boom.
How eCommerce Revenue Changed
While sales to brick-and-mortar establishments have fallen, the revenue of eCommerce has risen. In 2021, it’s projected that eCommerce revenue will reach £80,675m in the UK and £978,626m globally, with most of the latter figure coming from China.
The annual growth rate of the UK’s figure (CAGR 2021-2025) is 3.47%, meaning that it will rise to £92,461m by 2025. The largest segment of the market is Fashion, which is projected to reach £27,059m in 2021.
The Lockdown-Fueled Shopping Spree
To no one’s surprise, quarantine has forced many customers away from physical stores and towards the Internet. A 2021 report by Retail Economics and Natwest concluded that 46% of buyers in the UK bought something online that they had previously bought in stores exclusively.
The lockdown occurring around the new year has actually accelerated January sales, as the UK saw a 74% rise in January sales year-on-year in 2021, the largest growth since March of last year. This figure is even more surprising given that sales after the Christmas season tend to fall as most customers have already bought what they need.
Finally, the rush for those last-minute Mother’s Day gifts has largely belonged to eCommerce. There was a 47% reported increase in online revenue compared to last year’s Mother’s Day. This trend is not surprising since the UK’s lockdown restrictions began shortly after the holiday last year.
A Change in User Behavior
Just as important as the total revenue are the buying habits of customers across the United Kingdom. A few interesting points are that:
- ecommerce market participants will likely number 62.1m by 2025.
- User penetration will likely be 86.2% in 2021 and rise to 89.6% in 2025.
- The average revenue per user (ARPU) is predicted to be £1,372.78.
- 96% of total ecommerce purchases in the country will be domestic this year.
- 44% of ecommerce purchases were made with cards.
All these metrics make the UK a strong participant in the global ecommerce shift, both domestically and internationally.
It’s also worth talking about some specific habits of British shoppers that ecommerce companies would be interested in:
- UK shoppers continued making purchases online, a trend that has not abated even when physical stores reopened.
- 75% of UK shoppers prefer to use the “click and collect” option on ecommerce websites.
- Cart abandonment on the Internet remains high at 79.17%.
If you’re working with, say, a WooCommerce developer, keeping these habits in mind will help you optimize your storefront for maximum engagement.
Buying Online Has Become More Commonplace
Shopping on the Internet was always a rising trend, and the lockdowns have only accelerated it. Some of the most impressive figures are:
- 87% of UK customers buy online.
- Internet retail sales went up by 72.7% in 2020.
- Spending online for the British is expected to rise to £132.43 billion in 2021.
Of these sales, Amazon.co.uk is the most popular location for online transactions in the nation, and smartphones are the most popular device for shopping on the go, with mobile eCommerce growing at 13.6% annually. The British are also using more digital wallets than ever before, as 32% of online payments were made with them.
The Impact on the Retail Market
No other industry has seen such a shift as the retail market. Online sales accounted for 35.2% of all retail activity in the first month of 2021 compared to the peak of the coronavirus last May, when it was 34.1%.
Three fields greatly impacted by the third national lockdown in the UK were textiles, clothing, and footwear, which saw half of sales come from the Internet in January. Because the COVID restrictions will likely continue into spring, these trends will likely continue in 2021.
Where the UK Stands Compared To the World
The United Kingdom actually ranks #3 in terms of most active markets for international online purchases in the past year. The UK also saw one of the largest increases in online share for retail sales: 15.8% to 23.3% in the past year.
These metrics place the nation alongside other major world economics like the US, Canada, Australia, and Singapore.
Ride the Wave With Globalgraphics
Don’t miss out on the eCommerce revolution in the UK. 2021 is the perfect year to capitalize on the new trends in online shopping, so make sure your company is ready by working with an eCommerce design service in Birmingham.
Whether you work with Shopify, WooCommerce, or any other online storefront, we have a solution that will ensure your success. Get in touch today to get started.
