The United Kingdom (UK) is one of the most advanced and mature e-commerce markets in Europe and the rest of the world. With a population of above 69.5 million and a high internet penetration rate of 97.8%, the UK offers a large and lucrative online customer base for both domestic and foreign businesses.
In this article, we will provide an overview of the UK e-commerce market, covering its size, growth, consumer behavior, payment methods, social media usage, and logistics challenges.
The UK e‑commerce: overview
The UK e‑commerce scene is a heavyweight. Online shopping will cover around 30.7 % of total retail spend in 2025. And that’s nearly one in three pounds spent in shops coming through digital channels. It means about £599.07 billion, with £184 billion flowing online.
The audience? Almost everyone.
By 2025, the UK was expected to have 62.1 million e‑commerce users – virtually the whole adult population. It’s no niche hobby anymore; online shopping is mainstream.
Mobile is king. M‑commerce in the UK will surpass £100 billion by 2025. That’s more than half of all online shopping – 60 % of e‑commerce orders zoom through smartphones in January 2025 alone. Shoppers aren’t waiting to get home. They tap, swipe, and buy on the go.
When it comes to shopping categories, Fashion steals the spotlight. The UK e-commerce fashion market will hit $44 billion in 2025, growing strong with a 15.7 % CAGR. Clothes, shoes, accessories – they’re what people want.
It’s not just footfall – it’s borders, too. Brits love international buys, and UK brands are building fans abroad. Around 52.5% of UK online shoppers purchased from online stores in another country in the past 12 months. Think cosmetics from Seoul, kitchen gadgets from Berlin, bespoke crafts from Spain, etc.
What about UK e-commerce market leaders? Here, we have Amazon, eBay, ASOS, Tesco, and Sainsbury’s Argos.
Yet, there are also some platforms that grow faster than others. For example, Etsy’s active buyers increased 96% – from 45.7 million in Q4 2019, to 89.9 million in Q4 2024. After all, shoppers go for sustainable, quirky, one-off items. Thus, independent artisans and niche brands are thriving.
Subscriptions are another spike in the UK e‑commerce. 54% of Brits pay for at least one subscription in 2025. Predictable income? Businesses love it. Convenience? Often, the main reason to hop into subscription services.
So what’s the vibe? The UK e‑commerce world is mature, bursting, and inventive. It’s the calm of a seasoned runner, with a burst of energy in its stride. There’s competition, sure. But there’s also space to mix things up – from subscription boxes to indie marketplaces.
Consumer behavior
UK consumers are savvy and demanding when it comes to online shopping. They expect fast, convenient, and personalized experiences across multiple channels and devices. They also value trust, security, and transparency when choosing an online retailer and payment method.
In 2025, Brits spend about 8.8 % of their annual income on e‑commerce (more than Americans, French, or Dutch). Yet here’s the twist: they only spend about 2 hours 4 minutes weekly shopping online. Quick, decisive, and efficient. That’s the style.
And yes, Gen Z and Millennials rule. But around 53% of those aged 65 & over use the internet for browsing websites at least once a month. Many of them have embraced the click-and-collect, mobile-first culture, and aren’t afraid to return things, even if it strains retailer patience.
When asked about attitudes toward online shopping, the majority of UK respondents (57%) say that when they plan a major purchase, they always research it on the Internet first. Also, respondents love customer reviews and think they are very helpful.
In the UK e‑commerce, price sensitivity has become a key factor in purchasing decisions, with buyers increasingly seeking value in their shopping. This trend is particularly evident in non-food retail, where there has been a shift back to physical and omni-channel shopping, moving away from online-only retailers. While there is still some interest in sustainable products, the momentum for switching to these options remains limited.
Another trend in UK e-commerce is the growing demand for transparency and control over personal data. Therefore, e-commerce merchants need to adopt a customer-centric approach to data management and comply with the General Data Protection Regulation (GDPR), among other relevant regulations. This means they need to inform customers about:
- what data they collect
- why do they collect it
- how they use it
- who they share it with
- and how they protect it
They also need to provide customers with easy access to their data and give them the ability to modify or delete it if they wish.
Bottom line? British shoppers are practical and savvy. They want frictionless experiences, safety, and a good deal. They research before buying and click-buy more, making consumer behavior in UK e‑commerce feel like sprint racing: sharp, efficient, and for keeps.
Payment
In 2025, Brits have clear favorites at checkout. Debit and credit cards dominate, making up 33% share of all payments in the UK in 2024, and still climbing in online use. Yet, Buy Now, Pay Later leads growth at a 21.6% CAGR through 2030.
Contactless is old hat – by February 2025, 76% of debit and 65% of credit card transactions were contactless. Consumers love it for speed and simplicity.
Digital wallets are growing as well. Apple Pay, Google Pay, PayPal are surging, especially among 18–24-year-olds. In this segment, nearly 29% now pick wallets as their go-to, according to The Payments Association. Also, approximately 20% of Britons use digital wallets for in-person, everyday transactions. Regulatory eyes are on Big Tech – FCA and PSR are reviewing their impact on competition and privacy.
Open banking “Pay by Bank” is creeping in, but still tiny. In March, open banking had 27 million payments, compared to 1.92 billion card transactions. It’s promising (smoother, cheaper), but needs trust and adoption boosts.
Buy‑Now‑Pay‑Later (BNPL) sits in the mix too—popular with younger shoppers and for fashion. Still, regulations are tightening to keep misuse in check.
In short: cards are the foundation, contactless defines convenience, wallets climb, open banking lurks in the wings, and BNPL is a tempting encore.
Social media
Scroll, tap, shop: Brits are turning social feeds into aisles.
In 2025, the UK social commerce market is expected to hit $49.21 billion, growing by about 22.7% annually. But that’s not all. 56% of UK consumers have already bought something directly through social platforms, and that number keeps rising. Mobile feeds are the battleground: around 73% of these purchases happen on smartphones.
In the UK, there are 54.8 million social media users. On average, they spend 5h 36m on browsing online and 1h 37m on social media scrolling.
Which platform do they use the most? Here are the top platforms:
- WhatsApp is the most-used platform overall in the UK, with strong monthly engagement and topping the “favourite” lists too.
- Facebook (incl. Messenger) reaches about 91% of UK online adults, with ~55.9 million users as of January 2025.
- YouTube reaches around 54.8 million users, matching about 79% of the population.
- Instagram has 33.4 million users (~48.2% of the total population).
- TikTok has 24.8 million users in early 2025 (aged 18 and above).
- X (formerly Twitter) dropped 8% in just a year. Now it has about 22.1 million adult users monthly.
TikTok is killing it in beauty. It now ranks as the 4th‑largest beauty retailer in the UK, selling one product every second via TikTok Shop. Meanwhile, 40% of Gen Z say they bought beauty products based on social inspiration.
In addition, brands are staging live streams and shoppable posts with influencers. 82% of people trust micro-influencers, and social buying is top traction among Millennials and Gen Z. Platforms are merging content and commerce seamlessly: Facebook, Instagram, TikTok – they’re blurring the line between scroll and checkout.
Some of these features include Facebook Shops, Instagram Shopping, WhatsApp Business, YouTube Shopping, and TikTok For Business. These features allow businesses to create an online store on social media, tag products in their posts and stories, display product information and links on their videos, communicate with customers, and accept payments.
Logistics
Logistics is a crucial aspect of the UK e-commerce, as it determines how fast, reliable, and cost-effective the delivery of products is for both sellers and buyers. The UK has a well-developed logistics infrastructure that supports e-commerce activities across the country and beyond.
In 2025, the UK e‑commerce logistics market is worth roughly $20.76 billion, set to climb at 5.94% CAGR through 2030. Warehouses are multiplying, especially in the logistics “golden triangle”, and new hubs are spreading across the Midlands.
Home delivery still dominates and is the main factor due to which people choose online shopping – for 46.4%. That said, parcel lockers are building momentum. Companies like InPost, DPD, DHL, and Royal Mail are racing to expand locker networks—InPost alone hit 12,800 UK pick‑up points in 2025. Lockers are cheaper, 24/7, and perfect for city dwellers dodging missed delivery days.
Consumers demand speed and control. Around 60 % expect free two‑day shipping; 58 % want next‑day; 53 % view same‑day delivery as crucial. Yet only ~35 % of retailers can meet that two‑day promise.
Sustainability is rising in priority. Amazon ordered 140 electric HGVs in early 2025, part of a £300 million “green transport” pledge. DHL also opened a massive new Coventry hub, creating 600 jobs and boosting its capacity to process up to 1 million parcels a day.
And tech is revolutionizing the last mile. Start‑ups are optimizing delivery with machine‑learning and gig‑drivers, hoping to halve last-mile costs and make free delivery viable for UK retailers.
Yet, the UK e-commerce logistics industry also faces some challenges that may affect the efficiency and quality of delivery services. Some of these challenges are:
Brexit: Brexit has had a profound impact on UK logistics, introducing new challenges and opportunities. The departure from the EU has led to increased customs checks, trade agreement changes, and supply chain management adjustments. These changes have required businesses to navigate new regulatory landscapes, which have caused delays and increased costs in some cases. However, Brexit has also prompted the logistics sector to innovate, adapt, and find new routes or markets to maintain efficiency and competitiveness.
Competition: The UK e-commerce logistics market is highly competitive, with many players vying for market share and customer loyalty. Moreover, the growth of e-commerce and technology has increased the demand for fast and reliable delivery services and has forced logistics companies to improve their offerings. Some of the emerging competitors include Amazon Logistics, which has its own fleet of delivery trucks and drivers, or DHL Parcel UK, which has partnered with PayPoint to offer more than 3,500 parcel stores across the UK.
Conclusion
As you can see, there are big things happening in the UK. This e-commerce market is one of the largest and most developed in the world and in Europe. You can see this through the statistics above, which highlight the dynamic and evolving nature of this country in 2025.
The UK offers a huge opportunity for businesses that want to tap into the country’s growing online customer base. However, to succeed in the UK e-commerce market, first understand and adapt to its unique characteristics, such as its payment methods, social media platforms, and logistics challenges.
Why should you do so?
Because then, you will offer your UK customers a seamless and satisfying online shopping experience.
Take your chance in the UK e-commerce and start selling!
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