The outbreak of COVID-19 has significantly altered daily life, making many once-familiar routines feel out of reach. While numerous industries have suffered negative impacts, e-commerce has been one of the few to benefit. By examining the UK market and Amazon UK, we hope to provide SMEs with a basic overview of the UK’s e-commerce development before and after the pandemic.

1. UK Market Overview: Pandemic-Driven Changes and the Rise of E-Commerce
The proportion of UK consumers using mobile phones for online shopping reached 55% in 2020, second only to Sweden (60%), China (59%), and Norway (57%). In comparison, just 39% of U.S. e-commerce sales came from mobile devices. The UK’s high mobile penetration rate of 85%—equal to that of Sweden and Norway and higher than the U.S. (84%), Germany (79%), and China (60%)—plays a significant role in this trend.

A survey of 2,000 UK consumers by PFS, a provider of e-commerce fulfillment and operations solutions, found that 39% of respondents began purchasing items online during the pandemic that they previously only bought in physical stores—such as pet food and other daily necessities. Younger consumers were especially eager to adopt new online shopping habits: about 61% of Gen Z and 52% of Millennials turned to online channels for necessities and other items during the pandemic (Figure 2). As a result, online sales accounted for a record 30% of total UK retail sales in 2020 (Figure 3), indicating that UK consumers are gradually changing their purchasing habits due to the pandemic.

2. Shortened Delivery Expectations Among UK Consumers
The same PFS survey shows that since the pandemic began, consumers’ expected delivery times for online orders have decreased. Before the pandemic, 90% expected delivery within a week, with 36% expecting 3–5 days and 29% expecting 2 days. Post-pandemic, the proportion expecting delivery within a week fell to 71%, within 3–5 days declined to 29%, and within 2 days dropped to 14% (Figure 4). Consumers understand that the pandemic has disrupted logistics chains, causing delays.

Large order volumes and short turnaround times are one cause of slowed logistics, but a key factor is the new measures retailers have adopted in response to COVID-19. Take Amazon for example: to address pandemic-related issues, Amazon prioritized warehouse space and faster shipping for essential household and medical items. A non-essential product like a guitar may now take nearly a month to arrive. Even Amazon Prime subscribers have to wait at least a week for non-essential items. In unprecedented times, public interest takes precedence over speedy delivery of non-essentials.

3. Growing Acceptance of Alternative Payment Methods (APMs)
As more consumers shop online, including younger users and those who might not have credit cards, alternative payment methods (APMs)—such as “buy now, pay later” services (e.g., Klarna), online banking transfers, and e-wallets—are becoming increasingly popular. Companies like PayPal and MobilePay have also entered the UK market.

Research by PPRO, a local payments platform-as-a-service company, found that 42% of Millennials and 35% of Gen Z consumers in the UK are confident using or having used APMs. In contrast, only 19% of the general UK population shares that confidence. Almost half (46%) of UK consumers have heard of APMs but never used them, suggesting many remain cautious. Still, 28% say they will or plan to use APMs instead of debit or credit cards within the next two years (Figure 5).

4. Amazon UK: Ongoing Sales Growth for the UK’s Largest E-Commerce Platform
According to the UK’s Office for National Statistics, online grocery sales more than doubled on average during the pandemic. They rose from about £175 million per week (approximately US$231 million) in October 2019 to £366.7 million (about US$484 million) in July 2020 (Figure 6).

Groceries are one of the fastest-growing categories in UK e-commerce, and Amazon’s services are well-aligned with this demand. Nearly nine in ten (86%) UK consumers are Amazon users, and about four in ten (39%) have Amazon Prime. For the Seattle-based e-commerce giant, this makes the UK market ripe for all types of product sales.

In Summary
Even as the pandemic gradually eases and lockdown measures lift, the consumption habits forged under COVID-19 remain. This irreversible digital transformation has affected both businesses and consumers. Moreover, the UK experienced another surge in cases toward the end of the year, prompting another lockdown. According to research by eBay Advertising, 27% of consumers started their Christmas shopping early, and spending during the holiday season was more interest-driven than ever. During lockdown, 56% of surveyed consumers picked up new hobbies, and 75% planned to continue them post-lockdown. Gardening and baking proved most popular. It remains to be seen how this trend will influence the e-commerce industry’s development during the winter of 2020 and beyond.

後疫情時代：英國電商發展現況
 

參考資料 / References：

1. Michael Moeser（2020）6 ways COVID-19 is changing U.K. e-commerce (https://bit.ly/3ncMzw4)

2. BBC News（2020）Coronavirus: Retail sales crash in April as lockdown hits shops (https://bbc.in/39UXwP8)

3. Rhian Murphy（2020）Retails sales, Great Britain: September 2020 (https://bit.ly/2W2RQKJ)