Discover the top ecommerce marketplaces in the UK!
The best way for brands and retailers to rapidly build a new customer base in the UK is by leveraging the reach of online marketplaces.
As the dominant force in ecommerce, there are clear strategic benefits to selling on marketplaces: it’s a proven way to break into new markets, grow sales through a wider customer base, and it requires minimal risk or upfront investment.
In this article, we’re going to take a closer look at the top marketplaces in the UK. We’ll see which marketplaces are the best for reaching more customers, and how they can help build a long-lasting positive association with your brand.
A snapshot of ecommerce in the UK
As Europe’s second-biggest economy, the UK also boasts the #1 ecommerce market in the European region. The reason is simple: people in the UK love shopping online, and marketplaces make it easy to find new inspiration and buy quality brands.
Provided you can offer convenience and choice, there’s a good chance you can succeed in this market.
- Internet penetration in the UK is a whopping 97.8%, which is significantly higher than Germany or the USA (both 92%).
- There are more than 60 million ecommerce users in the UK, and each spends proportionately more of their income on online purchases compared to any other European country.
- UK consumers spend about 10.26% of the country’s total GDP on products from online marketplaces and online stores.
- Ecommerce in the UK takes a significant 38% share of all retail revenue.
- Purchases via smartphone are estimated to generate over 66% of all UK ecommerce sales, however smartphone order sizes are typically 31.9% lower than orders made via a desktop device.
This thriving market is also still growing, although recent uncertainty has led to a range of estimates. While some analysts predict growth of just 5.99% CAGR in the current period to 2028, the US Department of Commerce estimates an annual growth of 12.6%. Meanwhile, other analysts suggest more aggressive growth in the period to 2029, of 21.76% CAGR.
A reasonable outlook will see the current retail (B2C) market volume of US$149.3 billion grow to a projected US$188 billion 2028.
It’s interesting to note that the B2B ecommerce market is a similar size to B2C, meaning the total ecommerce market (B2C and B2B combined) is currently valued at about US$280.55 billion. If you’re a B2B operation, or thinking of becoming one, this is a very positive sign.
Consumer trust and the vital role of marketplaces in the UK
Wherever you go in the world, trust is a necessary ingredient for successful ecommerce. Customers need to know they’ll get the items they purchase - and a satisfactory solution if there’s a problem.
UK consumers place a lot of trust in familiar brands and names. Some of the biggest ecommerce players today are ex-high street stores that have pivoted to an online sales model. Some of these trusted retailers include Debenhams, John Lewis, B&Q, and Argos.
Many of these retailers are capitalizing on their trusted names by adopting a marketplace model as well. For them, it’s an easy way to extend the range available to consumers, but for you it’s a way to hitch a ride on their trusted place in the minds of UK consumers.
Since the UK left the European Union, longstanding trade relationships with the EU have been decoupled. Without a favorable customs arrangement with EU partners, the market is now wide open to new brands and retailers from all regions to make their mark.
If you can build a name for yourself as a brand in the UK, you stand an excellent chance of building a loyal customer base.
The growing popularity of marketplaces in the UK
There are many marketplaces in the UK for consumers to choose from, including niche marketplaces and local heroes. However, as you might have guessed, Amazon is the leading marketplace in the UK.
By aligning yourself with the trusted brand identity of the UK’s favorite marketplaces, you can piggyback off the familiar shopping environment and ingrained habits of UK consumers.
As a seller, it’s important to recognize that UK consumers are not ‘marketplace agnostic’. In other words, each consumer tends to have one or two preferred marketplaces they always use – and it’s not always Amazon.
This means that you can achieve the best sales results by covering all your bases and selling in all the major marketplaces in the UK.
The top five UK marketplaces
Visibility is essential for building trust in your brand, so this is another reason to ensure your products are listed on the top marketplaces in the UK.
While Amazon is the most popular marketplace in terms of visitor traffic, it’s not always where consumers end up buying. People now typically use Amazon (and other marketplaces) as the first step in their product search - instead of going to a search engine like Google.
This makes it all the more important to be visible everywhere UK shoppers will visit by employing a multichannel strategy.
#1 Amazon.co.uk
Category focus: All categories
Special features: FBA, multichannel fulfillment (MCF), #1 marketplace in the UK, potential to cover multiple regions.
Amazon took over US$30 billion revenue from the UK market in 2022, which is about 4.3% of their global revenue. As the largest marketplace in the UK, Amazon cannot be ignored. As GMV on Amazon is also growing at a steady rate of 6%, this is also a good organic growth opportunity. Thanks to multichannel fulfillment, Amazon can become a stepping-stone to multichannel growth. Consumers in the UK use both the Amazon.co.uk and Amazon.com websites, attracting a combined visitor traffic of 380.6 million people per month.
#2 Ebay.co.uk
Category focus: All categories
Special features: #2 marketplace in the UK
Ebay has emerged as a powerful platform for B2C sales, after shrugging off its previous image as a C2C ‘online yard sale.’ Evolving rapidly from its origins as ‘AuctionWeb’ (which was set up to sell a broken laser printer), eBay has become a trusted destination for UK consumers.
The marketplace provides dedicated brand spaces for brand owners, allowing better protection of brand identity and reputation on the marketplace. More than 208 million visitors from the UK visit eBay.co.uk and eBay.com each month. About 15% of eBay’s global GMV comes from the UK marketplace. By being present on eBay.co.uk you stand a chance to claim your slice of the US$9.9 billion consumers in the UK will spend in 2024.
#3 Etsy
Category focus: Vintage, Handmade, Crafting supplies
Special features: #3 marketplace in the UK, limited options for most B2C brands.
Ok, so this may not be useful for many retailers, as Etsy.com specializes in handmade and vintage items, as well as crafting supplies. But it’s interesting to know that UK consumers clearly love the appeal of vintage designs and ‘authentic’ items they can connect with. This marketplace started in the USA, but has swiftly grown in the UK and other countries too. Some 49 million visitors from the UK stop by Etsy each month, to shop for unique items and get inspiration. It might not be a sales opportunity, but it can tell you something about market preferences.
#4 John Lewis
Category focus: Fashion and Home and family-oriented products. Homewares, Garden, Sport, Gifts, and much more.
Special features: Positive brand identity, Ethical. Curated marketplace, with good potential margins. Launched their fashion-oriented marketplace in 2021.
Johnlewis.com is the online presence of John Lewis Partnerships, a recognized high street name that has become an online retailer and a thriving fashion marketplace. Founded over 100 years ago during the progressive era, John Lewis was built on a principle of conducting business as ‘a force for good.’ From the beginning, the company was set up with a written constitution that ensured all staff (or ‘Partners’) had an input in how the company was run, as co-owners. The result is a powerful brand identity and a lot of public trust. Some 34.5 million people visit johnlewis.co.uk each month. It’s fashion marketplace launched in 2021, as an answer to Zalando’s growth in the UK.
#5 ASOS
Category focus: Fashion
Special features: #5 marketplace in the UK and the #2 fashion website in the UK, launched its own marketplace in 2010.
‘As Seen On Screen’ has swiftly become better known as ASOS, and it’s now a powerful presence in the UK fashion segment. The ASOS marketplace features over 900 boutiques, each being a distinct seller or brand. More than 82.8 million visitors stop by ASOS each month, and 19.99 million come just from the UK.
In addition to the top 5 marketplaces above, other major marketplaces in the UK include:
- Wayfair: Home and Décor, 10.7 million UK visitors/month
- Vinted.co.uk: Second-hand and vintage fashion, 9 million UK visitors/month
- OnBuy: All categories, 4.9 million UK visitors/month
- Zalando: Fashion focused, 4.8 million UK visitors/month
- ManoMano: DIY, gardening, and homeware, 3.3 million UK visitors/month
Start out right on UK marketplaces
There is clear potential for sales growth in the UK market, and marketplaces are the key to a successful ecommerce strategy.
However, it’s also essential to get the best advice, so you start out right from the beginning. This can smooth your path to success and prevent any missteps or common mistakes along the way.
In addition to our world-leading ecommerce platform, ChannelEngine can provide your organization with support and advice from our Customer Success Team. These ecommerce experts have all the experience and knowledge you need to get optimal results from your product range, and they can help you identify opportunities you may not be aware of.
When specialist services or third-party capabilities are needed, our ecosystem of strategic partners can also help. We have every possible expertise or service available, from logistics services to full-unburdening - or any other requirement.
