The United Kingdom e-commerce market size reached approximately USD 252.89 Billion in 2025. The market is projected to grow at a CAGR of 7.90% between 2026 and 2035, reaching a value of around USD 540.94 Billion by 2035.
Base Year
Historical Period
Forecast Period
The United Kingdom boasts the highest proportion of international retailers and is the largest e-commerce market and mobile retail sector in Europe.
As of January 2021, e-commerce accounted for 36.3% of the overall retail market in the United Kingdom.
In the UK, individuals aged between 25-34 years are the most prolific online shoppers, influenced by convenience and attractive offers.
Compound Annual Growth Rate
7.9%
Value in USD Billion
2026-2035
*this image is indicative*
Customers prefer e-commerce platforms as they facilitate flexibility and convenience. E-commerce channels have numerous advantages, including a rapid buying process, product and price comparison, discounts, and cost reduction, among others.
The United Kingdom is the third largest e-commerce market in the world, after China and the United States. The United Kingdom e-commerce market growth is being fuelled by the growing smartphone market penetration, the increasing number of internet and social media users, and the rising population in the country. Nearly 2/3 of the e-commerce sales in the UK are made via smartphones.
Rapid digitalisation, the rise of digital payments, the integration of AI and automation in e-commerce platforms, and the rising trend of sustainability are positively impacting the market growth
| Date | Company | Action |
| Nov 23rd 2023 | Relay | Netted USD 10 million in seed financing to launch its delivery network in the UK and end-to-end delivery services for the e-commerce sector |
| Jun 29th 2023 | Kama Ayurveda | Entered into the wellness and luxury beauty sector in the UK and launched an e-commerce platform in the country |
| Oct 17th 2022 | Sephora | Launched a dedicated UK e-commerce site, sephora.co.uk, aimed at helping customers to shop for its branded products and exclusive brands |
| Apr 25th 2022 | WPP | Launched Everymile, an end-to-end e-commerce solution, to support clients bring their products to market quickly and ensure consistency over customer touchpoints through the DTC experience |
| Trend | Description |
| The digitalisation of the retail sector | With rapid digitalisation, retailers are increasingly turning towards online services to extend their reach, complement brick-and-mortar stores, and enhance the convenience of customers. |
| The rise of digital payment | Advancements in digital payment, including biometric authentication, contactless payment, and voice assistance payments, among others, are expected to improve the checkout experience and increase conversion rates of e-commerce purchases. |
| The integration of automation tools and AI in e-commerce platforms | There is a rising deployment of advanced tools and technologies such as AI and automation by online retailers to streamline their operations and inventory management and enhance their profitability. |
| Rising trend of sustainability | Online retailers are introducing sustainability initiatives such as reusable packaging, reducing emissions from international shipping, and adopting eco-friendly mobility solutions to meet the demands of eco-friendly customers. |
Digital payment options are revolutionising the online retail sector by accelerating checkout processes, facilitating fast transactions, reducing cart abandonment, and improving customer experience. Retailers are also integrating digital payment into their e-commerce strategies to enhance efficiency, boost sales, reduce costs, and minimise human errors.
The emergence of social commerce is anticipated to bolster the United Kingdom e-commerce market expansion in the forecast period. Platforms such as Instagram, Pinterest, and Facebook have emerged as e-commerce channels, enabling businesses to sell their products to potential customers.
The deployment of artificial intelligence in e-commerce platforms is further stimulating the market growth. For instance, e-commerce virtual assistants and voice commerce use machine learning and language processing to comprehend customers’ queries and offer needed assistance. Besides, the increasing demand for personalised shopping experiences and product recommendations by customers is surging the integration of AI in online retail platforms.
“United Kingdom E-Commerce Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Transaction Type
Market Breakup by Product
The demand for beauty and personal care products from online channels is rising, owing to their convenience and price benefits
Beauty and personal care products hold a substantial share of the United Kingdom e-commerce market. This can be attributed to convenience, accessibility, wide product range, ease of checkout, and effortless returns and exchanges offered by e-commerce channels. Moreover, enhanced personalisation, customised recommendations and ads, and tailor-made price promotions enabled by the online retail sector are further boosting online sales of beauty and personal care products.
Brands are integrating innovative technologies into their e-commerce platforms to ease virtual try-ons and enhance the accessibility of beauty and personal care products among the specially-abled. For instance, in January 2023, The Estée Lauder Companies UK & Ireland launched its AI-powered mobile app, Voice-Enabled Makeup Assistant (VMA) application, to support visually impaired customers to easily apply makeup. The app is available via Estée Lauder’s UK site and the Apple App Store in the UK.
The United Kingdom e-commerce market is also growing at a healthy pace as a majority of customers in the UK prefer to buy consumer electronics online due to attractive discounts and deals. Easy return policies, coupled with buyers’ product reviews, are further boosting sales of consumer electronics from e-commerce channels. Brands are also formulating innovative strategies like optimising their product pages and utilising multichannel marketing to cater to evolving customer demands and drive conversions.
Besides, the sales of fashion and apparel from online channels are expected to grow in the coming years, with customers seeking time-saving and comfortable shopping experiences. With fashion brands attempting to offer omnichannel and seamless shopping experiences to customers, they are foraying into the online retail sector.
In addition, increasing partnerships between fashion companies and logistics and delivery partners to facilitate rapid delivery of apparel and fashionwear is fuelling the United Kingdom e-commerce market growth. For instance, in December 2023, Vinted, an online platform, partnered with parcel carrier Yodel, to enhance its delivery experience and assist fashion enthusiasts to easily and rapidly receive items.
Major players included in the United Kingdom e-commerce market report are integrating innovative technologies to offer personalised experiences to customers:
| Company | Founded | Headquarters | Sectors | Brands |
| Amazon.com, Inc. | 1994 | United States | online advertising, digital streaming, e-commerce, cloud computing, artificial intelligence | Solimo, AmazonFresh, Amazon Essentials |
| Walmart Inc. | 1962 | Arkansan, United States | e-commerce, hypermarkets, grocery stores, discount department stores | Sam's Choice, Equate, Great Value |
| Sainsbury’s Group | 1869 | London, United Kingdom | Supermarkets, e-commerce | Argos, Habitat, Nectar, Sainsbury’s Bank |
| Asos plc | 2000 | London, United Kingdom | online fashion retail | asos LUXE, HIIT, AsYou, actual. |
Other United Kingdom e-commerce market players include Currys plc, John Lewis plc, Tesco plc, and Asda Group of Companies, among others.
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In 2025, the market reached an approximate value of USD 252.89 Billion.
The market is estimated to grow at a CAGR of 7.90% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach a value of around USD 540.94 Billion by 2035.
The major drivers of the market are the increase in the number of e-commerce platforms, the growth of social media platforms, and high mobile internet access.
The key trends aiding the market expansion include the integration of artificial intelligence with e-commerce and the increasing sales of fashion and apparel from online channels.
The major transaction types of the market are business-to-business, business-to-consumer, and consumer-to-consumer, among others.
The different products in the market are beauty and personal care, consumer electronics, fashion and apparel, food and beverage, and furniture and home, among others.
The major players in the market are Amazon.com, Inc., Asos plc, Currys plc, Sainsbury’s Group, John Lewis plc, Tesco plc, Walmart Inc., and Asda Group of Companies, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Transaction Type |
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| Breakup by Product |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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