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01 Feb 2010
UK shoppers are the biggest online spenders in Europe, according to new research from price comparison site Kelkoo, which reported that £38bn was spent online in this country last year.
The new study, carried out by the Centre for Retail Research, identified e-commerce as one of the fastest growing markets in the UK, jumping 171 per cent since 2003. British shoppers now account for around a third of all online sales in Europe.
E-commerce is, unsurprisingly, predicted to lead the UK out of recession. Online sales this year are set to jump £4.7bn, or 12.4 per cent, to a total of £42.7bn, equivalent to 10.5 per cent of all retail spending in the UK.
To put this into perspective, European online retailing is set to increase by £25.1bn (19.6 per cent) from £127.7bn to £152.8bn, accounting for 5.5 per cent of overall European retail sales in 2010.
Bruce Fair, managing director of Kelkoo UK, explained that many consumers have been attracted to the online channel by the promise of cheaper goods.
"The recession helped to boost the appeal of online retailing, making UK consumers more determined than ever to make every penny count," he said.
"Online retailers in the UK will continue to reap the benefits in 2010, enjoying an average rise in sales of over 12 per cent, what in other retail sectors would be regarded as an unachievable rate of growth in the current economic climate."
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UK top web spenders despite poor retail websites
It is excellent news that the UK is leading the way with online spend in Europe, but I do believe that this is despite retailers best efforts rather than because of them. Consumers recognise in a difficult economic climate that they can find better deals online and also like the anonymity of the internet. It?s not that consumers have actually quelled their spending but are just getting savvy as to how they shop and take a bit more time to find that internet bargain. That said, the increase in spend online appears to be despite the frustrating experience that many consumers face when shopping. E-commerce sites are often very difficult to use and present usability barriers that customers are expected to navigate around. This ranges from poor navigation to lack of sufficient product information. Considering the bad usability of most online retail sites is it any wonder that average conversion rates hover around the five per cent mark? If more retail outlets invested in design and usability of these sites, conversion rates would surely rise. For some retailers even an increase of one per cent could lead to millions, if not billions of increased sales. So while it is great news for e-commerce retailers that UK spend is set to continue to grow, they should also remember that there is still plenty of money being left on the table. Andy Budd MD and founder of Clearleft (www.clearleft.com)
Posted by: Liam Sherry 09 Feb 2010