UK: 19 percent of total revenue comes from ecommerce – report

October 2015
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Despite heavy investments in ecommerce technologies, only 19% of revenues for UK businesses come from the digital commerce medium, a recent reseach study reveals.

Moreover, the issue of integration with traditional sales channels, such as face-to-face and in-store, is the biggest battle for developing ecommerce as a whole, and more specifically when it comes to mcommerce, according to the "British business in the digital age“ report issued by the ecommerce consultancy Salmon, reports.

However, UK companies also have problems with handling customer service and managing the distribution of products when selling to customers. Despite that, the vast majority of retailers (95%) agree they have experienced benefits as a result of mobile sales. Key benefits are the ability to collect customer data and targeting customers more accurately.

In the retail sector (excluding manufacturing, retail-grocery, retail-luxury and wholesale) digital commerce currently drives 26% of sales, expected to grow to 40% by 2020. Meanwhile, almost one in four retailers (23%) think mcommerce will drive 20% to 30% of their revenue growthby 2020. Now, already 63% of retailers use mcommerce.

According to the ecommerce consultancy company, businesses in the UK face challenges in turning benefits into increased sales. What won’t help them is the fact that two in three companies don’t have a dedicated team in place or a plan to deal with the pace of change. Likewise, over half of respondents say their organisation doesn’t have the skills to maximize the potential of digital technologies. Nonetheless, businesses are preparing to take advantage: almost half of all organisations (49%) say they plan to invest in the Internet of Things and wearables within by 2020.

© Joana Lopes/