Retailers urged to take advantage of Amazon’s staggering UK sales growth

The UK remains Amazon’s second biggest European marketplace despite an apparent slump in online sales over the last 12 months.

Amazon has seen sales increase a whopping 750 per cent from £3.1 billion in 2010 to £36.6 billion in 2023, with the UK only sitting behind Germany in its top European markets.

It comes despite new research showing Brits spent £8.1 billion online in April 2024, a modest 1.5 per cent increase on the £8 billion splashed out in April 2023.

Chris Turton, online sales expert and founder of specialist Amazon agency Ecommerce Intelligence, said the data provides evidence that businesses need to make sure they are selling on marketplaces such as Amazon and take advantage of the pace of growth of the firm’s retail empire.

“With the growing demand for online shopping over the last decade, Amazon’s strong sales figures come as no surprise,” he said.

“The convenience and variety offered by online marketplaces such as Amazon is converting more and more people to shop on them.

“Amazon has become a very attractive sales channel for online merchants. It provides small business owners, start-ups and entrepreneurs with tools and opportunities to succeed, which extends beyond selling their products online.

“Many people start their online shopping journey on Amazon, and a significant proportion of those visit the site at least once a week. In the UK, there are 85,000 small and medium-sized enterprises (SMEs) selling on Amazon, so it is vital for retailers to have a presence there.”

Amazon recently reported strong results for the first quarter, driven by growth in its cloud-computing unit and new advertising from its Prime Video streaming service.

It brought in £113.2 billion in revenue in the first three months of this year, a 13 per cent jump compared to the same period last year.

While Chris believes Amazon’s impressive sales figures show the increasing popularity of online marketplaces, new research appears to show online spending in the UK is stalling.

According to Adobe, there was only a 1.5 per cent increase in the amount Brits spent online in April 2024 compared with April last year.

While this is now the sixth consecutive month of year-on-year growth in online spending, that growth has slowed every month since February.

As they did for much of 2023, retailers across non-essential categories have turned to discounting in efforts to stimulate demand, with the steepest year-on-year price drops seen in electronics, clothing and appliances.

Adobe believes these categories may also be feeling the effect of new entrants’ presence in the market, as retailers try to compete with the low prices offered by the likes of Temu, Shein and AliExpress.

Chris added: “What these figures show is that consumers are actually investing less in retailer’s own direct retail arms, but spending more of their money on marketplaces where I believe more retailers need to start selling on.

“Marketplaces connect millions of sellers to billions of customers, so people have grown to expect an endless aisle of options at their fingertips.

“They have also led customers to look for more value from their shopping experience.”

Chris will be taking part in a round table discussion with experts from top brands to provide an insight on how businesses can boost sales at the IRX & eDX (Internet Retail Expo & eDelivery Expo) at the NEC in Birmingham on 22-23 May.

Earlier this year, Ecommerce Intelligence launched a campaign highlighting that businesses across the UK are missing out on millions of pounds as rivals corner the online market.

The £1 million business, which helps businesses sell their products on Amazon, currently has over 50 clients including NikWax and Ardo Medical.