Ecommerce in the UK: A guide for businesses

Ecommerce in the UK: A guide for businesses

Ecommerce in the UK: A guide for businesses

Ecommerce in the UK: A guide for businesses

Everything you need to know about ecommerce in the UK: trends, insights, data, and tips from industry experts.

Everything you need to know about ecommerce in the UK: trends, insights, data, and tips from industry experts.

Suggerimenti per l'ecommerce

Suggerimenti per l'ecommerce

Suggerimenti per l'ecommerce

19 nov 2024

The UK has seen a lot of changes over the last few years. There’s a new government, a new king, and more. Its ecommerce sector is also evolving quickly, and it is now firmly established as one of the most advanced and largest European markets. 

To take advantage of the opportunities in the UK, you need to know how consumers in the region think and feel: why do they abandon carts? What features do they want retailers to offer? What are some key trust builders? What are their favourite payment methods?

To help, we asked 10,000 consumers across Europe all of these things in a survey of 20 questions focused on how they feel about the economy and what retailers need to do to attract, engage, and inspire them to purchase – and return.

This article explores the research to show you how consumers think, feel, and shop, so you can convert more visitors and build a loyal customer base in the UK.

Dave Smallwood, Mollie UK Director, says: “Although the UK is currently going through some growing pains from recent changes, we’re starting to see signs of hope that we will come out better and stronger. This gives businesses that operate there the chance to understand precisely what UK shoppers want and implement strategies to attract and retain customers.“

The UK has seen a lot of changes over the last few years. There’s a new government, a new king, and more. Its ecommerce sector is also evolving quickly, and it is now firmly established as one of the most advanced and largest European markets. 

To take advantage of the opportunities in the UK, you need to know how consumers in the region think and feel: why do they abandon carts? What features do they want retailers to offer? What are some key trust builders? What are their favourite payment methods?

To help, we asked 10,000 consumers across Europe all of these things in a survey of 20 questions focused on how they feel about the economy and what retailers need to do to attract, engage, and inspire them to purchase – and return.

This article explores the research to show you how consumers think, feel, and shop, so you can convert more visitors and build a loyal customer base in the UK.

Dave Smallwood, Mollie UK Director, says: “Although the UK is currently going through some growing pains from recent changes, we’re starting to see signs of hope that we will come out better and stronger. This gives businesses that operate there the chance to understand precisely what UK shoppers want and implement strategies to attract and retain customers.“

The UK has seen a lot of changes over the last few years. There’s a new government, a new king, and more. Its ecommerce sector is also evolving quickly, and it is now firmly established as one of the most advanced and largest European markets. 

To take advantage of the opportunities in the UK, you need to know how consumers in the region think and feel: why do they abandon carts? What features do they want retailers to offer? What are some key trust builders? What are their favourite payment methods?

To help, we asked 10,000 consumers across Europe all of these things in a survey of 20 questions focused on how they feel about the economy and what retailers need to do to attract, engage, and inspire them to purchase – and return.

This article explores the research to show you how consumers think, feel, and shop, so you can convert more visitors and build a loyal customer base in the UK.

Dave Smallwood, Mollie UK Director, says: “Although the UK is currently going through some growing pains from recent changes, we’re starting to see signs of hope that we will come out better and stronger. This gives businesses that operate there the chance to understand precisely what UK shoppers want and implement strategies to attract and retain customers.“

The UK has seen a lot of changes over the last few years. There’s a new government, a new king, and more. Its ecommerce sector is also evolving quickly, and it is now firmly established as one of the most advanced and largest European markets. 

To take advantage of the opportunities in the UK, you need to know how consumers in the region think and feel: why do they abandon carts? What features do they want retailers to offer? What are some key trust builders? What are their favourite payment methods?

To help, we asked 10,000 consumers across Europe all of these things in a survey of 20 questions focused on how they feel about the economy and what retailers need to do to attract, engage, and inspire them to purchase – and return.

This article explores the research to show you how consumers think, feel, and shop, so you can convert more visitors and build a loyal customer base in the UK.

Dave Smallwood, Mollie UK Director, says: “Although the UK is currently going through some growing pains from recent changes, we’re starting to see signs of hope that we will come out better and stronger. This gives businesses that operate there the chance to understand precisely what UK shoppers want and implement strategies to attract and retain customers.“

How UK shoppers feel about the economy

First, we asked UK consumers how they feel about the economic situation. 

UK shoppers are navigating through a complex economic environment. More than half (53%) of UK consumers view the current economic outlook negatively. However, the British are generally more optimistic about the future than other European markets, with 46% expecting economic improvements within the next 6 to 12 months. 

With this in mind, it could be a good time for businesses to enter the UK market, especially those currently trading in mainland Europe.

First, we asked UK consumers how they feel about the economic situation. 

UK shoppers are navigating through a complex economic environment. More than half (53%) of UK consumers view the current economic outlook negatively. However, the British are generally more optimistic about the future than other European markets, with 46% expecting economic improvements within the next 6 to 12 months. 

With this in mind, it could be a good time for businesses to enter the UK market, especially those currently trading in mainland Europe.

First, we asked UK consumers how they feel about the economic situation. 

UK shoppers are navigating through a complex economic environment. More than half (53%) of UK consumers view the current economic outlook negatively. However, the British are generally more optimistic about the future than other European markets, with 46% expecting economic improvements within the next 6 to 12 months. 

With this in mind, it could be a good time for businesses to enter the UK market, especially those currently trading in mainland Europe.

First, we asked UK consumers how they feel about the economic situation. 

UK shoppers are navigating through a complex economic environment. More than half (53%) of UK consumers view the current economic outlook negatively. However, the British are generally more optimistic about the future than other European markets, with 46% expecting economic improvements within the next 6 to 12 months. 

With this in mind, it could be a good time for businesses to enter the UK market, especially those currently trading in mainland Europe.

How UK consumers plan to shop

Next, we asked UK shoppers about how they plan to shop in the next 12 months. 

In total, 32% of UK consumers expect to increase their online shopping, a higher percentage than other European markets. 

Next, we asked UK shoppers about how they plan to shop in the next 12 months. 

In total, 32% of UK consumers expect to increase their online shopping, a higher percentage than other European markets. 

Next, we asked UK shoppers about how they plan to shop in the next 12 months. 

In total, 32% of UK consumers expect to increase their online shopping, a higher percentage than other European markets. 

Next, we asked UK shoppers about how they plan to shop in the next 12 months. 

In total, 32% of UK consumers expect to increase their online shopping, a higher percentage than other European markets. 

The UK’s most popular online payment methods

Next, we asked UK consumers about the payment methods they prefer to use when buying online. 

Credit and debit cards are the most popular method, with 73% of UK consumers preferring to use them for online transactions.  Other popular payment methods include PayPal, direct debits, Open Banking, and digital wallets like Apple and Google Pay. 

Buy now, pay later (BNPL) methods are slightly less popular than other methods in our survey. We also asked consumers how they use BNPL, and found that their usage has slightly decreased, dropping to 33% from 38% in last year’s report. (For more, go to our guide to BNPL usage and trends).

Dave: “UK consumers strongly prefer to use credit and debit cards, so you need to offer them at checkout. But we’ve seen a rise in alternative methods – BNPL, PayPal, digital wallets, Open Banking, and more. So, it’s a good idea to perfect your payment mix and make sure you’re offering every customer the payment method they prefer. That way, you’ll increase conversion and reduce cart abandonments.”

Next, we asked UK consumers about the payment methods they prefer to use when buying online. 

Credit and debit cards are the most popular method, with 73% of UK consumers preferring to use them for online transactions.  Other popular payment methods include PayPal, direct debits, Open Banking, and digital wallets like Apple and Google Pay. 

Buy now, pay later (BNPL) methods are slightly less popular than other methods in our survey. We also asked consumers how they use BNPL, and found that their usage has slightly decreased, dropping to 33% from 38% in last year’s report. (For more, go to our guide to BNPL usage and trends).

Dave: “UK consumers strongly prefer to use credit and debit cards, so you need to offer them at checkout. But we’ve seen a rise in alternative methods – BNPL, PayPal, digital wallets, Open Banking, and more. So, it’s a good idea to perfect your payment mix and make sure you’re offering every customer the payment method they prefer. That way, you’ll increase conversion and reduce cart abandonments.”

Next, we asked UK consumers about the payment methods they prefer to use when buying online. 

Credit and debit cards are the most popular method, with 73% of UK consumers preferring to use them for online transactions.  Other popular payment methods include PayPal, direct debits, Open Banking, and digital wallets like Apple and Google Pay. 

Buy now, pay later (BNPL) methods are slightly less popular than other methods in our survey. We also asked consumers how they use BNPL, and found that their usage has slightly decreased, dropping to 33% from 38% in last year’s report. (For more, go to our guide to BNPL usage and trends).

Dave: “UK consumers strongly prefer to use credit and debit cards, so you need to offer them at checkout. But we’ve seen a rise in alternative methods – BNPL, PayPal, digital wallets, Open Banking, and more. So, it’s a good idea to perfect your payment mix and make sure you’re offering every customer the payment method they prefer. That way, you’ll increase conversion and reduce cart abandonments.”

Next, we asked UK consumers about the payment methods they prefer to use when buying online. 

Credit and debit cards are the most popular method, with 73% of UK consumers preferring to use them for online transactions.  Other popular payment methods include PayPal, direct debits, Open Banking, and digital wallets like Apple and Google Pay. 

Buy now, pay later (BNPL) methods are slightly less popular than other methods in our survey. We also asked consumers how they use BNPL, and found that their usage has slightly decreased, dropping to 33% from 38% in last year’s report. (For more, go to our guide to BNPL usage and trends).

Dave: “UK consumers strongly prefer to use credit and debit cards, so you need to offer them at checkout. But we’ve seen a rise in alternative methods – BNPL, PayPal, digital wallets, Open Banking, and more. So, it’s a good idea to perfect your payment mix and make sure you’re offering every customer the payment method they prefer. That way, you’ll increase conversion and reduce cart abandonments.”

What UK shoppers expect from online retailers

Next, we asked UK consumers what capabilities they want online retailers to offer.

A massive 89% of UK respondents cited an efficient checkout process as important when shopping online. And 86% highlighted the importance of being able to use their favourite payment methods​. Next was customer service and support; free shipping and returns make up the rest of the top five. 

In a separate question, 64% of UK shoppers said that paying for returns would make them less likely to buy​ from a retailer. (Go to our guide on offering free returns for more). 

Dave: “The data shows that retailers need to streamline their checkout process, offer a variety of payment methods, and provide flexible shipping policies. Having clear and visible communication is key in guiding customers through the buying journey. Do you offer free shipping? Make this clear as soon as someone clicks on your website. If customers have to go to work to find your delivery and return information, you may lose them.”

Next, we asked UK consumers what capabilities they want online retailers to offer.

A massive 89% of UK respondents cited an efficient checkout process as important when shopping online. And 86% highlighted the importance of being able to use their favourite payment methods​. Next was customer service and support; free shipping and returns make up the rest of the top five. 

In a separate question, 64% of UK shoppers said that paying for returns would make them less likely to buy​ from a retailer. (Go to our guide on offering free returns for more). 

Dave: “The data shows that retailers need to streamline their checkout process, offer a variety of payment methods, and provide flexible shipping policies. Having clear and visible communication is key in guiding customers through the buying journey. Do you offer free shipping? Make this clear as soon as someone clicks on your website. If customers have to go to work to find your delivery and return information, you may lose them.”

Next, we asked UK consumers what capabilities they want online retailers to offer.

A massive 89% of UK respondents cited an efficient checkout process as important when shopping online. And 86% highlighted the importance of being able to use their favourite payment methods​. Next was customer service and support; free shipping and returns make up the rest of the top five. 

In a separate question, 64% of UK shoppers said that paying for returns would make them less likely to buy​ from a retailer. (Go to our guide on offering free returns for more). 

Dave: “The data shows that retailers need to streamline their checkout process, offer a variety of payment methods, and provide flexible shipping policies. Having clear and visible communication is key in guiding customers through the buying journey. Do you offer free shipping? Make this clear as soon as someone clicks on your website. If customers have to go to work to find your delivery and return information, you may lose them.”

Next, we asked UK consumers what capabilities they want online retailers to offer.

A massive 89% of UK respondents cited an efficient checkout process as important when shopping online. And 86% highlighted the importance of being able to use their favourite payment methods​. Next was customer service and support; free shipping and returns make up the rest of the top five. 

In a separate question, 64% of UK shoppers said that paying for returns would make them less likely to buy​ from a retailer. (Go to our guide on offering free returns for more). 

Dave: “The data shows that retailers need to streamline their checkout process, offer a variety of payment methods, and provide flexible shipping policies. Having clear and visible communication is key in guiding customers through the buying journey. Do you offer free shipping? Make this clear as soon as someone clicks on your website. If customers have to go to work to find your delivery and return information, you may lose them.”

How UK consumers shop online

We also asked UK consumers about how their buying behaviour had changed over the last 12 months. 

Here, 47% of consumers say they buy a product for the lowest price possible,  and 46% say they conduct more research before purchasing. 40% say they are more likely to buy a discounted item. It’s also interesting that loyalty to retailers seems more critical: consumers are more likely to buy from trusted brands and those that provide excellent customer service.

The data shows that consumers want to spend less and are actively shopping around to find better prices. So, what can you do? Be transparent with your pricing and offer discounts where possible. Also, think about how to build loyalty with shoppers. We explore how you can do that below. 

We also asked UK consumers about how their buying behaviour had changed over the last 12 months. 

Here, 47% of consumers say they buy a product for the lowest price possible,  and 46% say they conduct more research before purchasing. 40% say they are more likely to buy a discounted item. It’s also interesting that loyalty to retailers seems more critical: consumers are more likely to buy from trusted brands and those that provide excellent customer service.

The data shows that consumers want to spend less and are actively shopping around to find better prices. So, what can you do? Be transparent with your pricing and offer discounts where possible. Also, think about how to build loyalty with shoppers. We explore how you can do that below. 

We also asked UK consumers about how their buying behaviour had changed over the last 12 months. 

Here, 47% of consumers say they buy a product for the lowest price possible,  and 46% say they conduct more research before purchasing. 40% say they are more likely to buy a discounted item. It’s also interesting that loyalty to retailers seems more critical: consumers are more likely to buy from trusted brands and those that provide excellent customer service.

The data shows that consumers want to spend less and are actively shopping around to find better prices. So, what can you do? Be transparent with your pricing and offer discounts where possible. Also, think about how to build loyalty with shoppers. We explore how you can do that below. 

We also asked UK consumers about how their buying behaviour had changed over the last 12 months. 

Here, 47% of consumers say they buy a product for the lowest price possible,  and 46% say they conduct more research before purchasing. 40% say they are more likely to buy a discounted item. It’s also interesting that loyalty to retailers seems more critical: consumers are more likely to buy from trusted brands and those that provide excellent customer service.

The data shows that consumers want to spend less and are actively shopping around to find better prices. So, what can you do? Be transparent with your pricing and offer discounts where possible. Also, think about how to build loyalty with shoppers. We explore how you can do that below. 

How to drive repeat online purchases in the UK

So, how can you entice consumers to return to buy? We asked them that exact question. 

UK consumers are influenced heavily by free shipping (94%),being offered the best price (93%), available payment methods (90%), and free returns (90%) when deciding whether to buy from a retailer again.

Also, it’s important to ensure that your website works efficiently, helping shoppers quickly find the products they need and allowing them to check out without too much friction. Of course, offering your website in English is also crucial to converting UK shoppers.

Dave: “Positive reviews are always helpful, and 82% of consumers cite them as important for encouraging repeat business. Are you struggling with getting happy customers to leave a review? Consider offering them incentives such as a small discount on their next purchase. Not only does this help you with reviews but it can also encourage future spending.“ 

So, how can you entice consumers to return to buy? We asked them that exact question. 

UK consumers are influenced heavily by free shipping (94%),being offered the best price (93%), available payment methods (90%), and free returns (90%) when deciding whether to buy from a retailer again.

Also, it’s important to ensure that your website works efficiently, helping shoppers quickly find the products they need and allowing them to check out without too much friction. Of course, offering your website in English is also crucial to converting UK shoppers.

Dave: “Positive reviews are always helpful, and 82% of consumers cite them as important for encouraging repeat business. Are you struggling with getting happy customers to leave a review? Consider offering them incentives such as a small discount on their next purchase. Not only does this help you with reviews but it can also encourage future spending.“ 

So, how can you entice consumers to return to buy? We asked them that exact question. 

UK consumers are influenced heavily by free shipping (94%),being offered the best price (93%), available payment methods (90%), and free returns (90%) when deciding whether to buy from a retailer again.

Also, it’s important to ensure that your website works efficiently, helping shoppers quickly find the products they need and allowing them to check out without too much friction. Of course, offering your website in English is also crucial to converting UK shoppers.

Dave: “Positive reviews are always helpful, and 82% of consumers cite them as important for encouraging repeat business. Are you struggling with getting happy customers to leave a review? Consider offering them incentives such as a small discount on their next purchase. Not only does this help you with reviews but it can also encourage future spending.“ 

So, how can you entice consumers to return to buy? We asked them that exact question. 

UK consumers are influenced heavily by free shipping (94%),being offered the best price (93%), available payment methods (90%), and free returns (90%) when deciding whether to buy from a retailer again.

Also, it’s important to ensure that your website works efficiently, helping shoppers quickly find the products they need and allowing them to check out without too much friction. Of course, offering your website in English is also crucial to converting UK shoppers.

Dave: “Positive reviews are always helpful, and 82% of consumers cite them as important for encouraging repeat business. Are you struggling with getting happy customers to leave a review? Consider offering them incentives such as a small discount on their next purchase. Not only does this help you with reviews but it can also encourage future spending.“ 

What inspires UK customers to buy?

Next, we asked UK consumers about the things that stop them scrolling and inspire them to buy when they’re online. 

In total, 45% of UK consumers say that a discount offer when leaving a retailer's website inspires them to buy. An email or newsletter from a retailer and previously favourited items are also good buying triggers, as are email reminders and personalised recommendations.

Dave: “A well-designed, informative, and engaging newsletter or email can remind one-off customers about your brand and products. Utilise newsletter discounts, share items they previously favourited and items left in their cart to remind shoppers what they’re missing.”

Why do UK shoppers abandon their carts

We also asked UK shoppers what causes them to abandon their carts.

The leading reason UK shoppers abandon their online shopping carts is high shipping costs or taxes, with 57% citing this as a concern​. Other significant reasons include security concerns during payment (48%) and not being offered preferred payment methods (40%)​.

Reducing cart abandonment requires a multi-faceted approach: transparent pricing, secure payment options, and multiple payment methods are all crucial. By listing the cost of shipping, tax, and returns early at checkout, you can address the top concern of UK shoppers. Offering secure payments is also key. And offering multiple payment methods, such as PayPal, Open Banking, and digital wallets, can provide the flexibility that customers expect.

Dave: “It’s pretty well known that customers don’t like paying for shipping costs. Offering them an incentive such as free shipping for orders over a set amount – such as £50 – can encourage them to complete a purchase and even buy more items to qualify for the offer.”

How UK shoppers use social media

As part of our survey, we also asked consumers how they use social media to research and buy products. 

Social media, particularly YouTube (50%) and Facebook (42%), is a pivotal tool for UK consumers in their product research​. Interestingly, Facebook (40%) surpasses YouTube (35%) when it comes to actual purchases, highlighting the significant role of social media in consumer behaviour. 

This underscores the need for retailers to use an omnichannel strategy, where social media platforms are used for product marketing and as direct sales channels. Optimising product discovery and integrating easy checkout options on social platforms should improve conversion rates.

Ecommerce in the UK: final thoughts

So, what have we learned from the data?

How UK shoppers feel: They are optimistic about the economic future but still quite price-conscious. 

Future outlook: The UK ecommerce market is steady, with many expecting their online shopping to either increase or remain at the same level.

What shoppers expect: They prioritise convenience, preferring a smooth checkout process and access to their preferred payment methods. Offering free returns and shipping is also important.

Customer loyalty: Pricing competitively and offering free shipping and preferred payment methods drive repeat purchases in the UK.

Attracting customers: Competitive pricing, discounts, and clear communication can help attract UK shoppers.

Cart abandonment: High shipping costs and a lack of preferred payment methods are the main reasons for cart abandonment.

Grow your ecommerce business in the UK with Mollie

Here at Mollie, we’re on a mission to make payments and money management effortless for every business in Europe. We do that with a single platform that streamlines every payment process, from converting customers to settling your accounts.

Here’s what it offers:

  • A conversion-optimised checkout: Win every sale by offering your customers a personalised, frictionless checkout experience.

  • 35+ payment methods: Convert more customers with their preferred payment methods – from local options to global favourites.

  • Easy setup: Quickly accept payments with our ready-made plugins and best-in-class API.

  • The Mollie Dashboard and app: Manage transactions, process refunds, get insights, and accept payments – anytime, anywhere.

  • Fraud prevention: Protect your business and boost your revenue with customisable fraud tooling.

  • Local support in your language: Get help from our multilingual customer support teams whenever you need it.

Discover how our online payment solution can grow your business in the UK and across mainland Europe.

We partnered with leading research agency Coleman Parkes to survey 10,000 European consumers who shop online (at least one online purchase in the last month, though 66% had bought something in the previous week). 

The research was conducted online in July and August 2024.

The research was conducted across the Netherlands, Belgium, the UK, Germany, and France, with 2,000 surveys conducted in each market. To get a true representation of consumers in the research sample, a mix of age ranges, genders, and income brackets was included.

About the research

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MollieCrescitaEcommerce in the UK: A guide for businesses
MollieCrescitaEcommerce in the UK: A guide for businesses
MollieCrescitaEcommerce in the UK: A guide for businesses