A Review Of The Latest E-commerce Market Statistics In 2022
The UK has become the most innovative E-commerce market in Europe. By the end of 2022, the UK is expected to have nearly 60 million E-commerce users—leaving only a minority of the population as non-digital buyers. As such, E-commerce has undeniably become the norm for shoppers everywhere in the UK. Here is the current rundown of the E-commerce market:
Europe’s most profitable E-commerce market
Boasting to be the most lucrative E-commerce market across the continent, it’s a given that the UK’s retail sector also leads the way within Europe. Online retail made up nearly a third of the overall retail sales in the country in 2021 - over double the amount from exactly 10 years ago! Accelerated by the coronavirus pandemic in 2020, internet retail sales grew by almost 50% (the fastest rate recorded in the last decade), with UK consumers spending an incredible £110 billion online. While such steep growth was triggered by the pandemic, the UK’s E-commerce revenue is still expected to grow steadily in the future.
Online retail traffic is solid in the fashion sector, which currently drives the most revenue each year. The most recent government figures also show that over 25% of retail sales in this segment come from online channels. Consumer electronics was the next highest grossing category in terms of revenue, with Amazon obviously leading the way in the UK.
B2C shopping habits in the UK
When it comes to devices, UK consumers have developed a strong preference for using their mobile phones to make these online purchases. This year, smartphones held the majority share of both online retail traffic and orders. Among tablets, desktops, and smartphones, tablets were used the least of the three for online shopping.
According to a survey conducted in 2021, having access to product reviews was reported by 100% of UK consumers as an important driving factor for them to shop online, while free returns and free delivery options were attributes that were regarded as less essential.
What about B2B E-commerce?
The effects of the coronavirus pandemic were immediately felt among B2B industries. In general, circa 50% of them saw budget-related difficulties. When asked which weak areas the pandemic exposed, 56% of B2B companies pointed at technology infrastructure.
By the end of 2022, B2B enterprises are expected to adopt AR (Augmented Reality) technology, with digital leaders in the B2B sector now enjoying (x5) more revenue growth than their competitors.
In respect of B2B E-commerce, back-end systems have to be able to cope with rapidly refreshing inventory - something that many are not set up to deal with. Indeed, one of the critical factors determining B2B E-commerce success seems to be control – the ability to control your own supply chain, your own logistics, your own platforms and technology, and your own service proposition.
Not every B2B supplier can compete on the scale, but there are lessons in terms of making sure you have the most effective supply chain. With control over inventory and logistics, it opens up everything from cost efficiencies to enhanced customer experience. Control over the full product and customer journey also generates a wealth of insight that B2B E-commerce companies can then use to drive stronger, long-term relationships and business growth.
Following the model set by B2C E-commerce companies will not always be appropriate – the B2B environment has a unique set of complexities. However, there are clear advantages to adopting as many tried-and-tested B2C strategies as possible. Slowly but surely, the B2B industry is catching up and we are likely going to see a surge in technology adoption in the next five to ten years.
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