E-commerce websites are boosting the economy

Digital shopkeepers are changing the face of the Internet and global economy. Online shopping continues to have a major impact on Britain’s already booming Internet economy. According to new research and reports, the UK’s Internet economy is worth £100bn and its e-commerce sector is seeing more per-capita spending than the U.S.

Electronic commerce continues to gain popularity for various reasons. E-commerce websites have lower overheads than physical shops and its automated transaction process gives people greater administrative control and flexibility. Because of the internet small and virtual organisations are gaining profit because there is no need for maintaining large staffs, huge capitals, multi-lingual, transitional infrastructures.

UK is a global leader in e-commerce:

Despite its relatively slow broadband, the UK is proving to be a global leader in the e-commerce sector and currently boasts the highest online spending per capita in the world. Guardian Reporter James Robinson discusses the impact that online shopping is having on the British economy. Recent reports claim that the Internet is more valuable to the UK’s economy than the transport, construction or utility industries.

The increase in e-commerce websites has led to an increase in online advertising. The UK now has the largest online advertising market after the U.S. According to the latest reports and stats released by BCG, British Internet companies now employ 250, 000 people. Many of these employment opportunities have been created by small and medium-sized businesses.

According to Paul Zwillenberg, a partner at BCG and one of the report's authors, there exists a general perception in the UK that one can buy goods and services cheaper online. The strength of the Internet economy in UK is due to the large amount of money that Britons are spending online. This year, approximately 31 million people, purchased products online.

Internet Activity in the UK

Reports seem to indicate that the Internet’s role and importance to UK economy is set to grow. The Internet is a central to the Britain’s economy and according to the BCG, London and the South-East are the most popular areas in terms of Internet activity.

Broadband penetration will be a major contributing factor in the future growth of online commerce and the economy. More than 19 million of the 26 million households in the UK already have Internet connection and the government has set a goal of ensuring everyone has internet access by 2015.

More people are taking their products and service online, turning the Internet into a highly competitive marketing platform. The increase in E-commerce websites has led to an increase in online advertising and your location online proves to be as important as the physical address of your store. The web design industry is now a multi-faceted industry where effective SEO and online marketing forms an integral part of the design and web development process.

Contact us to find out more about ecommerce platforms and online marketing.

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