Ecommerce

The ecommerce landscape has undergone a transform in the past few years. Lockdown drove the boom as traditional bricks and mortar business owners needed to find a way to stay in business when people couldn’t leave their homes.

Nearly 60% of the online population have purchased a product or service online. This has seen a slight decline YoY (1.5%) but this is coming off the back of two exceptionally strong years.

Put another way, nearly 56MILLION people have purchased consumer goods online. This is worth an estimated £130Billion. The average revenue per consumer goods ecommerce user is just £2.3k with 57.6% buying something via their phone.

There are clear drivers in what inspires users to buy.

Free delivery is by far and away the most popular driver with 61.3% of internet users citing it as a reason to buy.

Coupons and discounts (38.8%), an easy returns policy , Loyalty points and next-day delivery are all incredible important.

Fashion is the biggest category worth $51.47BN, followed by Electronics ($28.15BN), Toys ($23.72BN), and Furniture ($18.28BN).

So there’s a lot of money being spent online with new sites cropping up every day. But new ways to buy online require new ways to pay.

Debit/Credit cards remain the most popular option used by 51% of users but digital/mobile wallets are quickly catching up with 32% of all users turning to the new medium.

Paying for content is another form of Ecommerce which is starting to find it’s audience.

The likes of Netflix, Disney+ and Spotify have all been huge players in the growth of paid content. 66.4% of users have bought or paid for a movie, TV or music streaming service, 8.2% of users have paid for an in-app purchase and 5.3% have paid for a subscription to an online magazine.

But its not just consumer goods who have experienced ecommerce growth. There has also been a spike in the online adaption of e-health services. There are now over 35m people in the UK using an e-health device or service. The category is said to be worth over 1.83BN with the average spend just over £50 per user.