E-commerce Trends 2011

E-commerce is having a huge impact on the way we do business. Online retailing is one of the fastest growing markets in the UK, growing steadily year on year.  Figures for 2010 showed a 16% growth on the previous year.  2011 looks set to continue this upward trend. What’s more, the UK spends more than any other European country online.

In 2011, it is expected that internet shopping in the UK will continue growing, with sales set to rise by £6.2bn (14%) by the end of the year.  In contrast, total retail sales are expected to grow by just 1.4% over the same period.

Even in today's economic climate, online retailing continues to be one of the fastest growing markets in the UK, with internet-related businesses worth an estimated £100bn a year to the UK economy – equivalent to 7.2% of GDP.

UK's Share of the Online Market

Online sales in the UK have grown massively during the past 10 years - many times faster than regular retail sales in physical shops.  For example, sales grew on average by 30% in the period between 2008 and 2010.  In Europe, the UK, France and Germany have the lion's share of the online market.  Last year, these 3 countries accounted for 71% of total online European sales with the UK coming out on top with £44 billion worth of sales, followed by Germany (£33 billion) and France (£26 billion).

Last year, UK internet shopping account for 10.7% of total retail sales which is the highest market share for Europe (the European average is just 5.9%).

Recession-Proof Sales?

Online sales in the UK are forecast to continue growing over the coming years.  It is expected that 2011 will again see online sales achieving a large share of retail sales.  Estimates claim 12p in every £1 will be spent online this year. 

Despite these recessionary times, online sales certainly seem to have bucked the trend.  In fact, many experts believe the appeal of online purchasing has been boosted by the recession as consumers look for ways to save money by buying online. Some estimates reckon consumers saved around £18 billion last year by shopping online (because of lower retail prices). 

Online sales per Online Shopper and Sales per Capita 2010

Average Spend

Estimates indicate the average UK online shopper is likely to spend £1,435 online in 2011 - that's a healthy 12% increase on 2010.  The UK is also currently the only country in Europe to achieve online sales in excess of  10% of total retail spending (the 2011 estimate is 12%).ped to attract an additional 5 million new online shoppers across Europe last year, and should help online retail sales to continue to thrive.

 
Summary of UK Online Trends 2010:

• Sales rose by 16% year-on-year to £44bn - the highest overall spend in Europe
• Online shoppers spent on average £1,284 each, purchasing 41 items - a lot higher than the European average of £908 on 25 items 
• Online sales accounted for 10.7% of total retail spending in the UK, expected to hit 12% this year – the largest market share in Europe

Summary of UK Market Forecast 2011:

• Online sales expected to grow by 14% - total retail sales expected to grow by just 1.4%
• Online shoppers expected to spend on average £1,435 each - that's 12% more than last year 
• Consumers expected to save £18 billion by shopping online  

READ A SUCCESS STORY FROM AN ONLINE FASHION GROUP RETAILER