UK e-commerce sector ranks third in the world

Thursday, July 22, 2021 1:01 PM

Lockdown learning has also marked a growth in the online purchasing power of the younger generation, as teens have spent 36% more money online than offline since last spring.

The UK e-commerce sector ranks third in the world when comparing sales to national GDP.

According to the BNPL Butter platform, e-commerce retail sales in the UK total up to $ 180 billion, which is equivalent to 6.7% of the national GDP of $ 2.7 trillion.

The world’s largest e-commerce retail market is China, which generated $ 2.3 trillion from online retailing in 2020. With China’s GDP at $ 14.7 trillion, this means that its e-commerce sector is comparable to 15.6% of overall GDP.

The nation that will follow China is South Korea. In 2020, their online retail business generated $ 111 billion. This equates to 6.8% of the national GDP of $ 1.6 trillion.

“Online retail is booming and is fast becoming the default choice for shoppers in large parts of the world,” said Butter CEO and co-founder Timothy Davis.

He added: “Its dominance is a result of the ease, affordability and choice it offers over more traditional retail methods.”