eCommerce trends in the UK - Ad Lab

eCommerce trends in the UK

Posted 4 years ago

The United Kingdom boasts the second largest eCommerce market in the world. Mirroring the United States with low prices being considered a very important factor; while it is predicted that in the future UK shoppers will pay more attention to customs, taxes and shipping times and change their habits in relation to this. With the constantly increasing number of online sales and the continuation of their growth after the reopening of society concerning COVID-19, there has never been a better time to partner with a Magento eCommerce agency. Ad Lab being an Adobe Bronze Solution Partner is the perfect fit for you to maximise on your eCommerce needs.

Several different aspects influence shopping trends in the United Kingdom depending on the type of goods being purchased. All three areas of goods, hard goods (such as electronics, appliances and sporting equipment), soft goods (such as clothes, shoes, home décor and linens) and everyday essentials (health and beauty products, packaged food and pet products) have the same top influences, being the lowest price for an item and free shipping. While sales and discounts are dropped as a top influence for soft goods in favour of a selection of colour and sizes. For an eCommerce store that sells a variety of items, the focus should be maintained in these areas. However, merchants who focus on a singular type, would need to identify the specific areas in which their consumers would want to be influenced. Such as hard goods have a strong influence by product specifications while soft goods customers want easy returns for products. Thinkwithgoogle identifies the 10-14 most and least influential areas of each type of product if you want to see the full list.

The key advice given when selling to British consumers focuses on two areas:

  • Make delivery estimates stand out. British consumers prioritise fast and affordable delivery after price.
  • Incentivise repeat visits with promotions and coupons. UK and US consumer habits are very similar, but the UK consumer is more likely to purchase from the same store twice.

As a Google shopping agency, we at Ad Lab are able to allow your company to identify the specific areas to maximise your website’s eCommerce design. Utilising data formulated using Google search and purchase habits. Adlab work to create targeted campaigns that provide strong returns, whilst dropping wastage with a poor ROI.

Another trend that has been gaining traction in the UK is the demand for localised shopping experiences. RetailSector highlights that last year saw a 57% year-on-year increase in cross border eCommerce sales. Due to this increase, many merchants are investing in payment processors which detect a URL’s native country and serve the payment pages in the native currency and language, to create a seemingly local website and therefore increasing sales conversions.

Buy Now Pay Later (BNPL) options have also reached a 49% usage in the 25-34 age demographic. Although the option still showcases many options, which prevent the option from guaranteeing conversions for the company. This is due to the authorisation checks related to BNPL, making it inaccessible to certain groups based on age and credit history. The inability to fulfil an order due to a failure of payment could cause prospective buyers to find an alternative, if a merchant’s demographic falls within the 25-34 age it could be seen as more beneficial to them to introduce a BNPL option.

Subscription services have also skyrocketed in the UK in the previous years. During the lockdowns related to COVID-19, the use of subscription-based services grew, with revenue of subscription-based businesses growing by 11.6%. This new form of eCommerce created an easier way for consumers to ensure they always have access to the items they use regularly and prevent running out. Subscription-based eCommerce has been integrated into all aspects of retail, with companies identifying specific gaps in the market and monopolising these areas, by creating a stronger and longer-lasting relationship with the customer. Subscription eCommerce is not limited to a specific area of retail either, existing currently anywhere from razors to meal kit boxes and shoe subscriptions. 

A survey in December 2020 by Wyzowl found that 84% of consumers purchased a product after watching a brand’s video. The use of videos for eCommerce also minimises the exchanges and returns of items by giving a better understanding of the product before purchase. Products also have an increased conversion rate with the inclusion of the share to social media button and a buy now button. Osome recommends utilising high quality, and short (30 – 60 secs) videos, with a 360-degree view of products that engage viewers the best. Voice-overs and subtitles are useful too. Also recommending one of the following three types of videos to feature your products:

  • Product Demonstration Video; A video showing how to operate, assemble and use the product. Recommended for products with require installation or for product tutorials such as makeup and skincare.
  • Story Video; Showcasing the background of a product, what drove the creation of the product and highlighting issues or problems the product resolves. This is recommended for products that have a unique story behind them or that wish to humanise their brand by featuring the owners/creators behind a product.
  • Testimonial Video; Highlighting the positive experiences that the current customers of the product are having adds authenticity to the brand, shows the benefits of the product in real scenarios and invites the viewer of the video to experience the product for themselves.

These eCommerce trends in the UK are all at different stages of their lifecycles, some just beginning to gain traction and being a great investment for a company’s future, while others are already well on their way and would be an immediate boost to a company’s eCommerce performance.

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