Wednesday 7 July 2021 11:51 am

Amazon accounts for a quarter of all UK online spending

Amazon commands a sizeable chunk of all UK online spending, with more than a quarter of online purchases made via the ecommerce giant.

A total 27 per cent of all UK online spending is via Amazon, according to data from ecommerce consultancy Wunderman Thompson Commerce.

Last year, eMarketer forecasted that UK consumers will spend £141.33bn online this year, up 34.7 per cent from 2019.

Amazon and fellow ecommerce giants like Alibaba and eBay have seen demand soar throughout the pandemic, as a locked down world turned to online shopping.

Despite the marketplace being widely used, more than two-thirds (69%) of people in the UK support the idea of Amazon paying more taxes.

Hugh Fletcher, global head of consultancy and innovation at Wunderman Thompson Commerce, said: “Ecommerce can no longer be treated as the supplementary sales channel. Global shoppers have clearly stated that, in the future, it will be their primary channel for retail purchasing.

“For some organisations, and particularly marketplaces, they are reaping the rewards of investing in a strong online presence, while the news has been littered with stories of businesses who have not identified these changing demands going bust.”

But while Amazon continues to be the leader of the pack, he said, it faces increasing pressure from more ethical competitors.

Figures released this morning from Amazon showed small and medium-sized British businesses selling on the marketplace recorded over £3.5bn in export sales last year.

Amazon said more than 14,000 UK SMEs surpassed £100,000 in sales in 2020, while over 1,000 reached £1m in sales for the first time.

The number of products sold on Amazon by SMEs surged to 750m from 550m the previous year — equivalent to more than 1,500 products a minute on average.

The £3.5bn in export sales marked a 20 per cent increase year on year.

Amazon has also benefited from this growth, with its UK revenue jumping more than 50 per cent to hit $26.5bn (£20bn) last year.