The booming UK eCommerce market provides lucrative opportunities for European brands considering international expansion. According to research from Statista, UK eCommerce retail revenue is expected to hit £145.6bn in 2029, up from £71.2bn in 2017. And while there are nuances, UK consumers share many of the same shopping preferences as their European neighbours, particularly for fashion categories. (Statista)

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Further enhancing the UK’s appeal is its extensive distribution network and local fulfillment capability. By partnering with a UK fulfillment provider, European-based businesses can benefit from faster shipping times, seamless customs clearance and local expertise.

What are UK Attitudes to Cross-Border Shopping?

A 2024 survey by Nosto found that 52% of UK (and U.S) consumers had made cross-border purchases within the previous 12 months. (Nosto)

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Fashion buys dominated with 70.1% of the 2,000 respondents making at least one cross-border purchase from that category. Meanwhile, Sporting Goods & Hobbies (57.2%), Health & Beauty (54.6%) and Electronics & Computing (53.2%) also featured prominently.

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What’s driving interest in cross-border shopping amongst UK consumers?

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• 41.3% said the ability to get products at lower prices than at home is their main motivation.
• 32.5% were interested in purchasing products that are unique or unusual.
• 31% said they wanted to buy products or brands that they can’t otherwise find easily in the local market.

Other key factors include a desire to take advantage of discounts and promotions, while over a fifth of buyers were inspired by products they’d discovered on social media. What’s clear is that there is a growing appetite amongst UK online shoppers for international brands and products.

Most Popular Segments in UK eCommerce

Clothing is the most popular segment amongst UK consumers, sharing this characteristic with eCommerce markets in France, Germany, Italy and Spain.

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A Consumer Insights survey conducted by Statista lists the following as the UK’s top five online shopping categories: (Statista)

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• Clothing (57%)
• Shoes (41%)
• Food & Beverages (30%)
• Books, Movies, Music &Games, excluding downloads (29%)
• Cosmetics & Body Care (29%)

A deeper dive into buying habits reveals that UK eCommerce revenue in Fashion is predicted to jump to £45bn by 2029, with Beauty & Personal Care expected to account for over £9.6bn of the market.

Consumer Behaviour and Online Shopping Preferences

The UK is home to the most advanced eCommerce market in Europe. With a high internet penetration rate and over 93% of the population accessing the internet via a mobile phone, there are plenty of opportunities for European brands to catch the eye of potential customers. (Statista)

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However, this mature market comes with big expectations and it’s important to understand local habits. The UK’s excellent connectivity is an advantage. But you’ll need to address the online shopping preferences of its discerning customer base.

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• There are 56.2m social media users in the UK, representing an 82.8% share of the total population. (DataReportal)
• Social commerce is becoming increasingly popular amongst UK consumers. Facebook revenue accounts for £2.5bn while TikTok social commerce revenue has grown from £154.9m to £736m since 2018. (Statista)
• Most online purchases are made using smartphones (69%), compared to laptops (43%), tablets (28%) and desktops (20%). (Statista)
• Digital Wallets represent the most popular eCommerce payment method (38%), followed by Credit Card (24%) and Debit Card (22%). (Worldpay)
• Over half (53%) of UK consumers find customer reviews very helpful while a third prefer express shipping. (Statista)

What to Consider Before Entering the UK Market

Before moving headfirst into the UK market you’ll need to lay the foundations for successful entry.

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Key considerations include:

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• Product fit. Is there demand for your products and how competitive can you be with your offering compared to local brands? Analyse your website traffic and sales data for any UK visitor patterns.
• Localising your brand. This includes your online infrastructure (e.g whether you choose to operate a subdomain or UK-specific site), translations and creative styles. Localisation is essential for building trust.
• Currencies and payments. Do the platforms you use support easy currency conversions and acceptance of local payment methods? Providing secure payments is another key issue.  
• Restrictions. Are there any restrictions on the type of products you sell? This is a crucial factor in whether you can ship overseas.

Brief Guide to Exporting to the UK

When exporting to the UK, you will need to be aware of various regulations and procedures to follow. The Trade and Cooperation Agreement (TCA) implemented in 2021 outlines the arrangements in place between the UK and European Union following Brexit.

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A step-by-step guide to importing goods into the UK is featured on the Government website. (Gov.uk).

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Key points include:

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• Registering for an EORI number: This is a unique identification number required by businesses importing and exporting goods within the EU and with the UK. If you don't have one, you'll need to obtain it from your local customs authority.
• Declaring the Country of Origin: You'll need to complete customs declarations for all goods exported to the UK, providing information about the goods, their value, and the intended destination. These declarations can be submitted electronically through customs clearance systems.
• Safety & Security Declarations: From 31 January 2025, EU imports into Great Britain will require safety and security declarations to be made. (Gov.uk)
• Taxes & VAT: As a general rule, deliveries with a total value of up to £135 are subject to VAT but not customs duties. Deliveries with a total value over £135 are subject to VAT and customs duties. The standard UK VAT rate is 20%.

These measures are subject to change. It’s important to stay up to date with the latest advice or consult with a customs expert.

Benefits of Local eCommerce Fulfillment

Having a UK eCommerce fulfillment partner can help European brands bypass the complexities of international parcel delivery and enhance their local presence. Having an in-country base can also help to alleviate some of the biggest concerns of UK consumers.

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These include:

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• 50% of UK online shoppers listed ‘longer delivery time’ as their biggest barrier to buying cross-border. (DHL eCommerce)
• 49.7% are concerned that they won’t be able to return an item easily when buying from outside their home country. (Nosto)
• 42% are worried their items won’t arrive on time or at all. (Nosto)
• 33.5% fear the products will be damaged in transit. (Nosto)

Outsourcing to a UK-based fulfillment partner can help overcome these challenges in the following ways:

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• Storing and fulfilling your products locally removes the burden of having to complete and manage customs paperwork for each individual shipment.  
• A UK fulfillment partner’s access to the final-mile network ensures faster shipping times and enhanced customer satisfaction.
• Local fulfillment provides a simpler and shorter returns process.
• A UK-based 3PL will give you access to a wide range of tailored and scalable services, including local customer service teams to deal with enquiries.

What Can European Brands Expect from UK Fulfillment Partners?

UK fulfillment partners provide local market knowledge combined with a sophisticated eCommerce logistics capability.

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This is what you can expect:

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• Faster Delivery Times: Storing your inventory in a UK warehouse allows for faster delivery times to UK customers, improving customer satisfaction and potentially increasing repeat business.
• Reduced Shipping Costs: Shipping within the UK is generally more cost-effective than international shipping from the EU, reducing shipping costs and improving profit margins.
• Simplified Customs and VAT: A UK-based fulfillment partner can handle customs clearance and VAT compliance, reducing the administrative burden and ensuring compliance with UK regulations.
• Improved Customer Experience: Faster delivery times and simplified returns processing contribute to a better overall customer experience, leading to increased customer loyalty and positive brand perception.
• Scalability and Flexibility: Partnering with a UK-based fulfillment provider can help you scale your operations to meet increased demand, especially during peak seasons. All without the need for significant upfront investment in your own infrastructure.
• UK-Based Customer Support: Local customer service agents can effectively communicate with UK shoppers and resolve any issues.

At the Whistl Group, we offer scalable and tailored fulfillment solutions that are trusted by 100+ customers worldwide. (Whistl Fulfillment)

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We also provide empathetic and human customer service support across phone, email, live chat and social media.  (Whistl Contact Solutions)

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You can be confident that we have you covered when you access eCommerce fulfillment solutions that are built around your brand and customers.

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Get in touch to find out more about our bespoke packages.