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E-commerce in the UK: 4 key trends for 2023

The economic context reshuffled the landscape of E-commerce in the UK. Foxintelligence exclusively presents 4 key trends for 2023.


Report description

With the current economic climate, consumers are limited in terms of budget. They have become very cautious in their spending and have to make trade-offs (between what they buy, where they buy and how much they buy).

Here are the 4 key trends for 2023 we will approach in this report about E-commerce in the UK.

Soaring inflation leads households to increase online spending while cutting back on non-essential purchases

The average amount spent online increased by 11% in Q1 2023 compared to Q1 2022, rising from £399 to £442. This surge favors essential categories: the share of food expenses grew from 25% to 27% in Q1 2023 compared to Q1 2022, while the Home & Appliances category increased from 15% to 17%. Conversely, fashion spending fell from 23% to 20% and Electronics & Computers from 20% to 18%.
“With the current economic climate, consumers have limited budgets. They’ve become cautious with their spending, making trade-offs between what, where, and how much they buy,” says Guillaume Coudry, Chief Customer Officer at Foxintelligence.

Second-hand shopping booms amid inflationary pressures

The second-hand market penetration rate rose from 16% in 2020 to 23% in 2022. Although this trend is evident throughout Europe, it’s particularly pronounced in the UK. People increasingly buy second-hand for environmental reasons, but now also for economic reasons in the current inflationary context. While second-hand shopping remains popular among younger generations, Generation X (1960 – 1979) increasingly adopts this consumption pattern, accounting for 15% of the second-hand market in 2022.

TikTok Shop conquers the beauty market

Launched in the UK in November 2021, TikTok Shop has firmly established itself within the English e-commerce landscape:
● AOV is 40% higher than the average beauty shopper
● The number of purchases is 37% higher than the average beauty shopper
● TikTok captures 17% of customers’ online beauty budgets, second only to Amazon

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