Online sales and e-commerce in the United Kingdom

If you have a software product, a service that can be delivered from abroad or a physical product that people don’t mind waiting for, you can do business internationally directly from your own country. 

This is also valid for the United Kingdom if you keep in mind that you will have to adjust your marketing. You may have to make translations and accept different currencies, and for physical products you have to manage the whole shipping and customs process.
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Where it all starts: select a target group

As counts for any country: you first have to define the target group that you want to sell to. If these are businesses, then you can reach out directly through emails and targeted advertisements, e.g. on LinkedIn. If this arouses interest and gives a sufficient response rate, then you may have found an easy way to get the market’s attention. 

If your target group is more diffuse, or is a consumer group, then you have to rely more on advertising such as on Facebook or Instagram.

Translate your website and check your SEO

Even if your business is really international, it may be wise to set up local website translations and check whether your text aligns with the culture. 

This also counts for the United Kingdom where people prefer reading in their own language and also search most of the time in their own language. Therefore you need to include the relevant keywords in your texts, and these may not be a direct translation.

With regards to content, my personal experience is that if you have a successful blog topic in one language, it is likely to do well also in other languages. Don’t reinvent the wheel, just make a proper translation.

Enable local payment

Customers who see prices and can pay in their local currency are three times more likely to deal with you. So it makes sense to offer this option.

Also for the United Kingdom offering local payment methods is recommended. Of course there are different options, but the easiest first step is to use credit or debit card payments.

Credit card payments typically work best up to an amount equivalent to 500 USD or EUR. If the invoicing amount is higher, there often is a different internal procedure required.

The e-commerce market in the United Kingdom

The UK e-commerce market is one of the largest and most advanced in Europe, with significant growth projected in the coming years. Here are key details about the UK e-commerce landscape:

1. Amazon.co.uk

Market Share: Over 30% of UK e-commerce market

Monthly Visitors: More than 400 million

Amazon dominates the UK e-commerce scene with a vast product selection across various categories. Its 2023/24 UK sales reached £26.4 billion, with a projected five-year compound annual growth of 9.2%.

2. eBay.co.uk

Monthly Visitors: Nearly 200 million

eBay is ranked as the UK’s second leading online store in 2024, offering a wide range of new and used products through auction and fixed-price formats.

3. Sainsbury’s (including Argos)

Annual Sales: £10 billion (2023/24)

Sainsbury’s, bolstered by its acquisition of Argos, has invested heavily in online and delivery services, becoming a major competitor in the e-commerce space.

4. Tesco

Market Position: Third place in online sales among UK retailers

Tesco, along with Sainsbury’s and Asda, forms part of the top four UK online retailers, collectively generating just under £20 billion in online sales.

5. ASOS

Focus: Fashion and cosmetic retail

While specific data is not provided, ASOS is mentioned as one of the e-commerce market leaders in the UK, specializing in fashion and beauty products.

The UK e-commerce market is projected to reach $220.22 billion in 2024, with a customer base of over 65 million online shoppers. The average spending per shopper is $4,679, and 69% of consumers use smartphones for online purchases. The market is expected to grow at a CAGR of 21.76% from 2024 to 2029, potentially reaching $750.80 billion by 2029.

Shipping your products

If you sell tangible products, you need to get them delivered into the United Kingdom but depending on the country you are in, this can be a challenge.

First of all you may have to pay import duties or settle VAT. There are certain thresholds for both of these charges, e.g. while importing in the EU you don’t have to pay import duties on any shipment worth less than € 150. 

There may also be non-financial bariers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected. 

Tell us what you want to ship and where to and we ask you all relevant questions to get to the most likely code.

Frequently asked questions

The best way to find an importer in the United Kingdom is to understand the sales channel for your product, and what parties are involved. Then find the right importers or wholesalers at the beginning of that chain. Before starting to push your product, approach a number of them to ask what they need. This way you can position your product better before you reach out to a broader group.
First check whether your product normally is sold through web shops in the United Kingdom or that other distribution structures are more common. Then determine the characteristics of your ideal web shop, and find a number of these, or outsource this search. When you approach the first few, you will learn what they find important and who your competitors are.
As in any country, convincing an importer or wholesaler to put your product in his assortment is difficult. Also in the United Kingdom importers look at the rotation of the product, how easy and often they can sell it, and multiply this with the margin they can make on it. The result should be higher than they earn now from any competing product. Only if you have proper sales data, for example from other countries, they will engage in a discussion with you.