According to the UK's Office for National Statistics (ONS), UK e-commerce sales via websites reached a staggering £4592 billion in 021.
Of this total, e-commerce retail accounted for 34.5% (£158 billion), while e-commerce wholesale was 183% (£84 billion). Together, these web sales accounted for around £246 billion and are now more commonly referred to simply as "e-commerce". The UK is the third-largest market globally for e-commerce, following China and the US. The UK is seen by many as an e-commerce powerhouse and a key driver for technology, innovation and business processes for the web-based sale of physical goods.
E-commerce continues to grow steadily both in the UK and around the world. Sourcing products was never so easy while fulfilment is ever more efficient. The associated provision of real-time statistics means that e-commerce is increasingly likely to lead thinking around trade strategy and planning. This point was particularly relevant for the development of China’s Free Port strategy which led to a boom in their direct-to-consumer exports.
E-commerce retail is also notable for its inclusivity, particularly towards women. Liz McCutcheon from Inspirent highlights the preference among many aspiring female entrepreneurs to start businesses online, attracted by work flexibility and lower business setup costs. Even for businesses with physical retail spaces, an online presence is advantageous, attracting customers who prefer to preview products before purchasing.
Evidence suggests that traditional Scottish retailers, manufacturers, and brand owners are facing stiff competition from sellers located elsewhere in the UK due to more customers buying online. Now when a customer buys something online in Scotland the till is more likely to ring in England. However, this trend can change, as Scotland possesses enormous potential to expand its online sales footprint.
Effective e-commerce requires industry-specific education, employing skilled personnel, investing in the right technology, using the correct marketing tactics at the right time, and establishing strong partnerships with industry experts. A well-informed, ambitious approach is crucial to allow businesses to scale effectively while remaining profitable. Detailed business dashboards are key to providing real-time and actionable insights to make this happen.
When executed proficiently, e-commerce can operate with small, highly efficient teams leveraging advancements in automation, artificial intelligence, and machine learning. Successful businesses in this field are known for generating seven-figure revenue per employee and expanding their market share both domestically and internationally. E-commerce is synonymous with very high levels of productivity.
For those interested in networking, learning, and gaining insights from leading practitioners in this vital industry, Scotland’s national event, www.EcommerceScotland.com, will take place at the IMAX Glasgow Science Centre on Thursday, March 14. The event will focus on scaling, growth & profit optimisation; business automation; using AI & machine learning to drive productivity; high ROI marketing strategies and tactics; and automated customer service.
In this crucial election year, it is hoped that political figures will attend. For the sake of helping to drive the Scottish economy in 2024, e-commerce is not just a wise move, but a necessity.
Dr Peter Mowforth is CEO, INDEZ
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