The e-commerce market in the United Kingdom is projected to grow by 21.5% in 2021. The market increased over 46% last year in the midst of the pandemic, while experts project it will continue to expand for the foreseeable future. Over 30% of all retail sales in the UK were generated online last year.
The growing e-commerce sector is offering new opportunities for both new entrepreneurs and larger, established businesses. Some traditional retailers are scaling their online commerce channels and even abandoning traditional retail outlets altogether. Gap recently announced that it is closing all of its brick-and-mortar stores in the United Kingdom. It will process all sales through its e-commerce channels instead.
A number of e-commerce entrepreneurs throughout the United Kingdom discovered success before the opportunities of the pandemic even arose. Ben Francis, the founder of the Gymshark is a prime example. He started his company in his parents’ garage nine years ago when he was 19 years old. Cherry Freeman is a successful entrepreneur that is based in London. She has been rated “Britain’s coolest female entrepreneur” in 2017 by Business Insider. Her online marketplace for knitting and crochet products generates tens of millions of pounds in revenue and is valued at over £100 million.
If you are interested in becoming an e-commerce entrepreneur in the United Kingdom, then this is the perfect time to bring your dreams to fruition. The market size is growing faster than ever and there is still plenty of space for companies offering specialized products and services. Although the market has traditionally been more consolidated due to oligopolies like Amazon and Wayfare gobbling up the competition, there are more opportunities as new online merchants have found ways like using a UK Parcel forwarding service to differentiate themselves and reached customer is looking to move away from corporate e-commerce giants.
9 Tips to Create a Profitable Ecommerce Business
Here are some tips to thrive as an ecommerce entrepreneur in the United Kingdom.
Identify the most promising sectors
The sectors in the UK that can increase their online sales the most are video games, toys, furniture, hotels, tourism, handicrafts, jewelry, pharmacy, hardware, insurance, banking and finance. Other sectors that can see profound e-commerce sale growth include restaurant supplies, appliances, clothing, footwear, office supplies and school supplies.
Create inspirational messages
A recent survey found at 67% of European customers want to be inspired when shopping online. While the study was intended to serve as advice for companies selling products throughout Europe, it likely to be just as applicable to those reaching customers in the UK. Simply putting up your product listings isn’t enough. Create excellent content with inspirational messages to boost conversions.
Align business processes
You must define the operational development of marketing, products or services, logistics, catalog, promotions and all internal protocols that employees must execute. This will serve as a guide for the team and help establish the budget required to implement it.
Have a clear offer
The type of products and services that you intend to sell must be clear to target customers from the beginning. It is important to provide a list of prices and features that differentiate your products in the market. You must also include the sales policies and delivery time.
Having a health and safety system
Health and safety need to be a priority in the aftermath of the pandemic. Your ecommerce company must have safe packaging, disinfection and a reliable delivery service. This ensures that users feel safe and free from the possibility of infection.
It is not always easy to predict the stock required to meet demand. You will always need to update the products you have and eliminate out-of-stock inventory that customers no longer want. If you follow this approach, customers will be able to visualize the items they want and be aware of upcoming stock renewals.
Offer a differential
It is important to create a unique value proposition to stand out from other products on the market. Emphasizing your capabilities and unique benefits is key to boosting sales. Offering a good product, following up on deliveries and conducting satisfaction surveys will make the customer feel valuable and appreciated.
In the midst of this pandemic, the most effective way to increase brand exposure is through social networks. It is necessary to always keep social networking properties active. This involves uploading high quality photos, providing practical tips and offering updates to your consumers.
Provide a breadth of payment options
It is important to consider that consumer behavior changed due to the crisis. Many UK citizens became less apprehensive about online shopping and are increasingly making more purchases through ecommerce sites. It is important to remember that you will need to include a type of payment that processes online commerce transactions more efficiently, in addition to implementing debit, credit, and if possible, classic cash on delivery to provide greater security to the buyer.