Businesses urged to sell on Amazon as online marketplace is ranked top online UK retailer

Businesses need to make sure they are selling on Amazon as the online marketplace dominates the ecommerce market with sales more than double that of its closest rival, an industry expert said today.

Generating a whopping £12.9 billion in ecommerce net sales in 2023, Amazon recorded more than double the amount of its rivals.

In fact, Amazon’s sales were more than double its nearest two competitors – Sainsbury’s and Tesco – combined.

Chris Turton, online sales expert and founder of specialist Amazon agency Ecommerce Intelligence, said the data provides evidence that businesses need to make sure they are selling on Amazon and take advantage of the ever growing demand for online shopping.

“It’s not a surprise to see Amazon dominating the landscape of online marketplaces favoured by UK consumers, despite its recent challenges,” he said.

“One reason why the competition trails so far behind is the selection of diverse products across a multitude of categories that Amazon offers.

“Many people start their online shopping journey on Amazon, and a significant proportion of those visit the site at least once a week. In the UK, there are 85,000 small and medium-sized enterprises (SMEs) selling on Amazon, so it is vital for retailers to have a presence there.”

Amazon, the world’s largest online retail platform, was ranked first ahead of Sainsbury’s in the top 10 of online stores, which recorded £5.2 billion sales, and Tesco with £5 billion.

Meanwhile, the likes of Ocado, John Lewis and Apple also made the top 10.

Chris said the COVID-19 pandemic brought significant growth for Amazon, with its UK 2021 sales totalling an extraordinary £23.2 billion. As a result, the business invested heavily in increasing its distribution network and capacity to support online demand.

However, as shoppers returned to in-store shopping more keenly than expected, it meant Amazon was left with high inventory and excess space.

“What we are now seeing is online shoppers are returning again and Amazon has introduced a series of rapid-fire strategy shifts to adapt to the changing market,” Chris said.

Earlier this year, Ecommerce Intelligence launched a campaign highlighting that businesses across the UK are missing out on millions of pounds as rivals corner the online market.

Analysis of data from Amazon revealed that over 100,000 SMEs used the marketplace in 2022, generating £3 billion for the UK economy.

More than half of all physical product sales on the Amazon store in the UK are from independent selling partners, most of which are SMEs.

But Chris said thousands of firms were losing out to competitors because they were either neglecting their online presence, or ignoring it completely.

“Amazon is often seen as the enemy of small business, but the figures speak for themselves,” he added.

“Around 100,000 UK-based SMEs sell their products with Amazon and last year those businesses recorded over £3 billion in sales in 2022.

“I find it mindblowing how many businesses I have spoken to who think they don’t need Amazon for their business or ecommerce growth.

“I would go as far as saying if you’re not on Amazon your brand is not going to be a category leader. Period.”

As part of the campaign, Chris launched a free workshop to help businesses get started selling online, or to improve their online presence.

Shrewsbury-based Ecommerce Intelligence, which helps businesses sell their products on Amazon, enjoyed 25 per cent growth in 2023 and has set itself a similar target this year.

The £1 million business currently has over 50 clients including NikWax and Ardo Medical.