After China and the United States, the United Kingdom has one of the largest ecommerce markets in the world, with ecommerce revenue projected to increase to $285.60 billion by 2025.
Some key drivers for this rapid growth are increased internet penetration, advanced mobile connectivity and the rise of mobile commerce in the UK.
New and emerging ecommerce businesses have tremendous growth opportunities, as online retail is here to stay. In this article, we’ll look at how ecommerce has affected traditional retail in the United Kingdom and some trending ecommerce ideas for you to start an ecommerce business.
Are ecommerce businesses disrupting high-street retail?
The rise of ecommerce has dramatically revolutionised the way consumers shop in the United Kingdom: a staggering 89% of people shopped online in 2023, with clothes, food and shoes being the top three categories.
This rapid growth of ecommerce businesses has significantly impacted the retail landscape in the United Kingdom, with many high-street retailers struggling to survive. Fashion retailer New Look found it challenging to compete with online businesses like ASOS, Pretty Little Things, and Boohoo, eventually closing dozens of stores across the country.
Other high-street brands, including retail giants like WHSmith, Marks and Spencer, Toys R Us, and Body Shop, have also been affected by the rise of ecommerce.
When Toys R Us went into administration in 2018, Simon Thomas of Moorfields Advisory, the administrator assigned to supervise the final days of the company, frankly stated: "We have the online problem. People can go into our shop, look at something, then look at an [online] alternative and buy it at a cheaper price."
To adapt to changing consumer shopping behaviours, retailers like Tesco have evolved and embraced digital transformation. Digital approaches like multichannel and omnichannel experiences, or click and collect, are the way out of this retail apocalypse for high-street brands.
The ecommerce boom also presents extraordinary opportunities for new and established online brands. If you are considering starting an online business, let's look at some different types of digital and ecommerce businesses, online business ideas and emerging ecommerce trends you can leverage to start or buy an ecommerce business.
Trending ecommerce business ideas 2024
Print on Demand
Print-on-demand is an ecommerce business model where designs are digitally printed on demand on products like apparel, merchandise, accessories, home decor, etc. It's a great online business idea if you do not want to stock inventory.
To get started, you need to:
- Set up an ecommerce store or create an online store on marketplaces like Etsy or Amazon.
- Connect your online store to a print-on-demand provider like Printify, Gelato, etc. These PoD services offer a wide range of products that can be customised.
- Create custom designs, add them to products of your choice and list them online.
Once you have a sale, the entire order fulfilment, from printing to shipping, is handled by the PoD service.
Dropshipping
Dropshipping is an ecommerce business model where the seller is not required to stock inventory. Your dropship supplier stocks your products and ships them when you get an order.
The benefits of dropshipping as an ecommerce business idea are low start-up costs, easy scalability and the freedom to test new products without risk.
Books, coffee and home decor are some of the most popular products to dropship.
Apps
With over 6.3 billion smartphone users globally, it is no surprise that the mobile app market is booming! Mobile apps are expected to generate over $935 billion in revenue in 2024. There is an app for almost everything and every industry today.
If you want to start an online business, you could consider buying a pre-built app in a niche you are passionate about. App developers sell their apps for several reasons, the most common being project fatigue and the desire to innovate.
Once you buy an app, you can invest in marketing it and eventually build the user base and a steady revenue stream by offering in-app purchases, premium features, or a freemium version.
Amazon FBA Store
Fulfilled by Amazon (FBA) is an all-in-one ecommerce business solution offered by Amazon. As a seller, you only need to ship your products to Amazon Fulfilment Centers. They will store, pack, ship, and deliver your product when a customer finalises an order on your Amazon store.
The benefits of an FBA ecommerce business model are:
- Fast and low-cost shipping
- No stress about renting a warehouse or storage space
- Excellent customer service offered by Amazon
- The Amazon team expertly manages returns and refunds
Amazon FBM Store
Fulfilled by Merchant (FBM), as the name suggests, is an order fulfilment method where you, the merchant, are responsible for stocking inventory and shipping the orders, either yourself or by partnering with a third-party logistics provider.
If you are a new merchant selling on Amazon, FBM will probably be the only method available, as FBA approvals take time.
Amazon KDP
Kindle Direct Publishing (KDP) is Amazon's ebook publishing platform. This is a great online business idea for passionate and budding writers. If you love to write, you can self-publish your ebooks on Amazon for free. Kindle readers can download your ebook, or Amazon also offers a print-on-demand service where they print a paperback and ship it to your customer.
BigCommerce Store
Founded in 2009, BigCommerce has become the first choice of many top retailers like Superdry Australia, Skullcandy, La Perla and more. While this fully hosted ecommerce platform is preferred by major brands, they also offer solutions aimed at smaller ecommerce businesses, providing flexibility, scalability and security at affordable price plans.
Shopify Store
Shopify completely changed the ecommerce game and made it accessible for anyone to start an ecommerce business. Shopify's ecommerce platform, featuring a user-friendly drag-and-drop interface, is one of the most convenient platforms for creating a store and launching an online business.
Gymshark, one of the fastest-growing ecommerce companies in the UK, was started in a small garage in Birmingham in 2012. Today it sells in more than 230 countries via 14 online stores built on Shopify.
SaaS Platform
Purchasing an existing SaaS platform allows you to skip the start-up hiccups and procure a business in its growth stage with an established customer base, brand value and revenue stream.
Still undecided? Here are some SaaS businesses for sale on our platform.
Content Websites
A content website is a site that is a library of content built around a particular topic, sometimes referred to as a blog, niche site or an authority website. The goal of a content website is to create high-value content that attracts tons of traffic and then monetise that traffic.
Tim Burton, popularly known as Shmee, turned his passion for cars into a successful blog where he tests and reviews supercars. Capitalising on his brand Shmee150, he launched his merchandise line of branded clothing, accessories, and car-related products, offering him an additional revenue stream.
Conclusion
Driven by rapid changes in technology and globalisation, the ecommerce industry is poised for robust growth. Predicted to achieve an annual growth rate (CAGR 2024-2029) of 9.36%, with user penetration expected to reach 84.4% by 2029, the opportunities are substantial.
These compelling statistics make 2024 an ideal time to start or buy an ecommerce business. If you’re interested in the latter, read our Guide to Buying an Online Business for more detailed information.
Ecommerce FAQs
Which are the top ecommerce companies in the world?
Amazon, with a revenue of $574.785 billion in 2023, is by far the largest ecommerce company in the world. Walmart, Home Depot and Ali Baba are some of the top ecommerce businesses globally.
Which is the most popular ecommerce business in The United Kingdom?
Amazon.co.uk, ebay.co.uk and hotukdeals.com are the top 3 most visited ecommerce websites in the UK.
What is the best ecommerce business to start in 2024?
Electronics, fashion and food are the top three ecommerce product categories in the world. If you want to start an ecommerce business, there is a huge growth potential in any of these 3 categories.