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Online retail

Websites & marketing for online retailers

There are 41,135 online retail businesses registered in the UK, and the number has fallen 14.6% since 2021. Here is how they win customers online, and what a online retailer’s website needs to do.

41,135online retail businesses in the UK (2026)
-14.6%change since 2021 (all UK businesses +0.8%)
10%are sole proprietors (all UK businesses 14%)
96%have fewer than 10 employees (all UK businesses 89%)

Online shoppers compare in seconds. They leave if a store is slow, confusing or hides delivery costs until the end, and they come back only if the experience was easy and the brand felt trustworthy.

Running an online shop is also about what happens after the first visit: abandoned baskets, returning customers and the ads that send people to your product pages all matter as much as the design itself.

The UK market for online retail businesses

The number changed by -14.6% between 2021 and 2026, behind the +0.8% for UK businesses overall, so the field is not getting more crowded.

96% of them have fewer than 10 employees, 10% are sole proprietors and 89% are limited companies. Most are small operations, so a clear, quick website is a genuine way to stand out from competitors who have not looked after theirs. The ten areas with the most firms hold about 37% of the UK total.

Where online retail businesses are concentrated

AreaFirmsPer 10,000 residents
London10,73511.8
Manchester1,00517.1
Birmingham8957.6
Glasgow5508.4
Leeds4405.2
Bolton37011.9
Leicester3659.5
Kirklees3558.0
Bradford3506.3
Buckinghamshire3405.8

Most firms per 10,000 residents

AreaPer 10,000 residentsFirms
Manchester17.11,005
Southampton12.9335
Aberdeen12.2280
Bolton11.9370
Slough11.9200
London11.810,735

Source: ONS UK Business Counts 2026 (enterprises), SIC 47910: Retail sale via mail order houses or via Internet, and mid-2025 population estimates, via Nomis. Open Government Licence v3.0. Counts are rounded by ONS and cover VAT- and/or PAYE-registered businesses only. London is the 33 boroughs combined; areas under 60,000 residents, and areas with very few firms, are left out of the density table.

What a online retailer’s website needs to do

  • A store that loads quickly and checks out smoothly on a phone
  • Product and collection pages written around what people really search for
  • Clear delivery, returns and contact information before checkout
  • Reviews and trust signals on product pages
  • Automated emails such as abandoned-basket and back-in-stock reminders
  • Tracking that shows which ads and emails actually bring orders

Mistakes we see

  • Slow product pages with oversized images and too many apps
  • Surprise delivery costs at the last step
  • Thin product descriptions copied from suppliers
  • Spending on ads without tracking orders back to them

How we would approach it

  1. Shopify e-commerce stores. A Shopify store built around how your customers buy, fast on mobile and simple to run.
  2. Email automation. Abandoned-basket and repeat-purchase emails bring buyers back.
  3. Meta and Google ads. Meta and Google ads bring shoppers to your products, with tracking to see what pays.

Free website check →

Guides that help

Find your area

See the business picture where you work: London, Manchester, Birmingham, Leeds, Glasgow, Liverpool, Bristol, Sheffield, or browse all areas.

Questions from online retail businesses

What makes an online shop convert better?

Speed, clear product pages, honest delivery and returns information, reviews and a checkout with as few steps as possible.

Should I use Shopify or WooCommerce?

Both can work. Shopify is usually quicker to run with less upkeep, while WooCommerce offers more customisation if you have the time or support. Our guide compares them in detail.

How do online shops get more repeat customers?

With follow-up emails such as abandoned-basket reminders and post-purchase messages, and by making each order a good experience from checkout to delivery.

How many online retail businesses are there in the UK?

ONS counts 41,135 online retail businesses registered for VAT and/or PAYE in the UK for 2026. That figure excludes firms below the VAT threshold that are not registered for PAYE, so the real number is higher.

Where are most online retail businesses based?

By number of firms, the biggest concentrations are in London, Manchester and Birmingham. Per 10,000 residents, Manchester, Southampton and Aberdeen come out highest.

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