The Strength of the eCommerce Sector
Today we’ve published new data demonstrating how over 6,500 eCommerce startups and scaleups are transforming UK retail and driving innovation.
The size and success of the UK’s eCommerce sector is no surprise – it’s generated £95.7 billion in turnover in 2023 and employs over 464,000 people. But the real question is how we leverage this thriving industry to reinvigorate our high streets, improve small business productivity, and create a resilient, sustainable future for retail across the UK.
63 per cent of high street small businesses now selling their goods on their website using mobile applications or online platforms. This move to omnichannel retailing means high street retailers are able to access new markets and increase their viability.
For example, with companies combining eCommerce platforms with in-store click and collect such as John Lewis, or tech-enabled store designs linked to online marketing campaigns and mobile applications like Zara. It’s essential the government recognises this change and helps businesses leverage innovation to adapt, evolve, and thrive in the modern economy.
The UK’s productivity puzzle is well-documented – boosting eCommerce software and tools is the best way to tackle this challenge across the everyday economy. Today’s report shows that eCommerce startups and scaleups have already revolutionised how businesses operate, providing innovative tools from AI-powered platforms to advanced logistics solutions. By better integrating digital tools into traditional retail, we can ensure that brick-and-mortar businesses remain a vital part of the economy.
Startup Coalition has set out a series of initial recommendations to support the future of retail. This includes:
Adopting schemes like Australia’s “Small Business Technology Investment Boost” to drive eCommerce technology adoption among small businesses
Rethinking business rates to promote flexible 21st century high streets, tech-enabled retail spaces through dynamic evaluations and pop-up store relief.
Initiatives like Singapore’s “Build for Good” hackathons should be piloted to crowdsource creative solutions for urban challenges and empower startups to meet future high-street needs.