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E-Commerce in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Luyi Geng Luyi Geng London, United Kingdom Last Updated: July 2025 SIC UK-G4791

Revenue

£353.5bn

2025-26

£379.1bn

Past 5-Year Growth

Profit

£XX.Xbn

Employees

986k

Businesses

508k

Wages

£XX.Xbn

E-Commerce in the UK industry analysis

E-commerce companies sell various goods and associated services through online portals, either on websites, mobile apps or integrated into social media platforms. Internet access across Europe continues to accelerate, with the vast majority of countries boasting usage rates of over 80% of the population. The spread of fast broadband and mobile data has enabled rising numbers of Europeans to engage in e-shopping. Over the five years through 2025, e-commerce revenue is slated to climb at a compound annual rate of 4% to reach €352.5 billion.  

Trends and Insights

  • Inflation props up online retailers’ revenue. Sky-high inflation has more than offsetting falling sales volumes, driving revenue growth for e-tailers.
  • Sustainable and smart products are sought after. E-tailers are tapping into the rapidly growing market for sustainably made and smart products.
  • A handful of players dominate the scene. International e-commerce giant Amazon leads the way but there are several e-retailers that dominate regional markets, like Zalando and Otto.
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Top Questions Answered in this Report

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What is the market size of the E-Commerce industry in the United Kingdom in 2025?

The market size of the E-Commerce industry in the United Kingdom is £353.5bn in 2025.

How many businesses are there in the E-Commerce industry in the United Kingdom in 2025?

There are 508k businesses in the E-Commerce industry in the United Kingdom, which has grown at a CAGR of 5.7 % between 2020 and 2025.

Has the E-Commerce industry in the United Kingdom grown or declined over the past 5 years?

The market size of the E-Commerce industry in the United Kingdom has been growing at a CAGR of 5.2 % between 2020 and 2025.

What is the forecast growth of the E-Commerce industry in the United Kingdom over the next 5 years?

Over the next five years, the E-Commerce industry in the United Kingdom is expected to grow.

What does the E-Commerce industry in the United Kingdom include?

Groceries and Furniture, home décor and household appliances are part of the E-Commerce industry in the United Kingdom.

How competitive is the E-Commerce industry in the United Kingdom?

The level of competition is moderate and increasing in the E-Commerce industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Waste and data regulations are increasingly stringent. In the EU and other countries like the UK, governments are (or are planning on) implementing stricter regulations relating to single-use plastics and how data is used.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the E-Commerce in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

More payment options boost profitability as sales grow. As payment options become more varied and flexible, online spending will only increase. The rise of buy-now-pay-later platforms like Klarna and PayPal has led to e-commerce sales soaring, boosting profit.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the E-Commerce in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

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