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Amazon raised dominance of UK e-com market in 2019

Dec '19
Pic: Shutterstock
Pic: Shutterstock
Amazon has raised its e-commerce market share in the United Kingdom from 28.8 per cent in 2018 to 30.1 per cent in 2019, according to a report from insights firm Edge by Ascential, which reveals Amazon dominated the sector, accounting for $30 billion in sales in 2019. The second biggest player was eBay, which took a 9.8 per cent share of the online market.

They were followed by Sainsbury’s (4.6 per cent), Tesco (4.5 per cent), Walmart/Asda (3.9 per cent) and John Lewis (3.6 per cent).

The United Kingdom is the world’s third-largest e-commerce market behind China and the United States, accounting for $101 billion in 2019. Edge by Ascential predicts that e-commerce’s share of chain retail will continue to rapidly grow in the United Kingdom, expanding from 21 per cent in 2019 to 26 per cent in 2024.

Edge by Ascential analysts have identified three key planning factors for retailers in 2020.

Speed of fulfilment will become a competitive battlefield for retailers. As the consumer demand for speed and convenience continues to grow, retailers will place more focus in supporting fast and flexible supply chains to meet this need, asking suppliers to support their more agile operations with improved service levels.

Brexit will disrupt cross-border trade and regulatory alignment. Although the precise shape and timing of Brexit remains uncertain, retailers and brands must be prepared to face short-term disruption from potential trade tariffs, border delays and currency volatility. UK brands and retailers must therefore closely monitor future regulation, future-proof supply chains as well as ensure compliance with EU product standards to defend their existing market positions, says the report.

Further blurring of physical stores and online touchpoints is expected. There will be further shifts towards omni-channel shopping, particularly in grocery, as food retailers recognise its huge growth potential.

Retailers will need to leverage data and analytics to sharpen their market positionings, develop distinct channel strategies for product ranges and build out experiences in-store and online, British media cited the report as saying.

Fibre2Fashion News Desk (DS)

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