United Kingdom E-Commerce Market Size, Share, and COVID-19 Impact Analysis, By Model (Business to Business (B2B), Business to Consumer (B2C), and Consumer to Consumer (C2C)), By Product (Automotive, Beauty & Personal Care, Books & Stationery, Consumer Electronics, Home Appliances, Clothing & Footwear, Healthcare, and Others), and United Kingdom E-Commerce Market Insights, Industry Trend, Forecasts to 2035.

United Kingdom e-commerce Market Insights Forecasts to 2035

• The United Kingdom e-commerce market size was estimated at USD 360.45 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 14.85% from 2025 to 2035
• The United Kingdom e-commerce market size is Expected to Reach USD 1653.23 Million by 2035

According to a research report published by Spherical Insights & Consulting, The United Kingdom E-Commerce Market Size is Anticipated to reach USD 1653.23 Million By 2035, Growing at a CAGR of 14.85% from 2025 to 2035. Customers will have an easy and secure means to make purchases because of the increasing popularity of contactless payments, electronic payment apps, and cellular wallets.

Market Overview

The online retail business that allows customers to buy goods and services online is known as the e-commerce market in the UK. Companies that use the internet to supply a wide range of goods, from apparel to electronics, are included in this group. Improved internet connectivity, growing smartphone usage, and the speed at which digital transformation is occurring have all been significant factors in e-commerce expansion across the UK. An important facilitator that makes it possible for more customers to visit online shopping sites is smartphones. E-commerce's expansion has also been driven by its convenience, wider selection of goods, and ease of comparing prices. The government is prioritizing e-commerce and digital economy development through many projects that aim to enhance digital infrastructure. Further, a secure online payment system and encouraging tech-based entrepreneurship propel the market expansion.

Report Coverage

This research report categorizes the market for the United Kingdom e-commerce market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom e-commerce market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom e-commerce market.

Driving Factors

The e-commerce market in the UK is propelling due to 5G technology and the expansion of the consumer goods industry. The e-commerce sector is increasing quickly for a variety of reasons, such as widespread use of smartphones, a change in consumer habits due to high disposable income, and a shift to online shopping. The availability of a wide range of payment options, such as cash-on-delivery (COD), credit and debit cards, Internet banking, and electronic wallets, boosts the market expansion. Further, key companies' collaboration should excel the market expansion with novel marketing opportunities, and it could be considered as a marketing strategy. Additionally, the growing need for worldwide trade transactions and the UK is considered the key junction due to sophisticated technology and the logistics sector, which propels the market.

Restraining Factors

The major and primary barrier to the wide adoption of e-commerce technologies is security and data privacy risks related to the franchise or firms and consumer database tools.

Market Segmentation

The United Kingdom e-commerce market share is classified into model and product.

• The business to business (B2B) segment held a significant share in 2024 and is anticipated to grow at a rapid pace over the forecast period.

The United Kingdom e-commerce market is segmented by model into business to business (B2B), business to consumer (B2C), and consumer to consumer (C2C). Among these, the business to business (B2B) segment held a significant share in 2024 and is anticipated to grow at a rapid pace over the forecast period. From software solutions and professional services to industrial machinery and raw materials, B2B e-commerce covers a broad spectrum of sectors, goods, and services, so they need a variety of websites, online platforms that make these transactions seamless. Further, businesses' growing inclination to sell and buy goods and services online is linked with the segment's growth.

• The beauty & personal care segment held the highest share in 2024 and is expected to grow at a substantial CAGR during the forecast period.

The United Kingdom e-commerce market is segmented by process into automotive, beauty & personal care, books & stationery, consumer electronics, home appliances, clothing & footwear, healthcare, and others. Among these, the beauty & personal care segment held the highest share in 2024 and is expected to grow at a substantial CAGR during the forecast period. The increasing frequency of skin sensitivity disorders and rising consumer awareness of skin wellness issues are factors driving this segment's development. Furthermore, the launch of new products with facilitating price deduction for premium products and the increased emphasis on natural and organic ingredients in personal care products have improved the segment position in the market.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom e-commerce market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Argos
• Tesco
• Boots
• Sainsbury’s
• Screwfix
• John Lewis & Partners
• Marks & Spencer
• Others

Recent Developments:

• In May 2025, DHL eCommerce UK and Evri announced a major merger, creating one of the UK’s largest parcel delivery businesses. The combined company handled sone billion parcels and one billion business letters annually.

• In January 2024, THG signed a major partnership deal with Holland & Barrett, making THG Ingenuity the main e-commerce operational partner for the health and wellness retailer in the UK and Ireland. The three-year agreement saw THG provide fulfillment and courier management services for Holland & Barrett’s growing online business.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom e-commerce market based on the below-mentioned segments

United Kingdom E-Commerce Market, By Model

• Business to Business (B2B)
• Business to Consumer (B2C)
• Consumer to Consumer (C2C)

United Kingdom E-Commerce Market, By Product

• Automotive
• Beauty & Personal Care
• Books & Stationery
• Consumer Electronics
• Home Appliances
• Clothing & Footwear
• Healthcare
• Others