Number of online only retailers has doubled in last five years: new study
A new study has revealed that the number of online-only e-retailing businesses in the UK has more than doubled in the past five years from 6,700 in 2008 to 14,400 in 2012.
The study conducted by the Centre for Economics and Business Research for Royal Mail shows that around 15,000 new jobs have been created by e-retailing start-ups that trade solely online in the past five years.
The 21.3% annual growth in companies which sell goods exclusively online compares with a 0.4% average fall each year in the total number of businesses contributing to the UK economy, the study found. Over this period, the total number of businesses in the retail sector fell by 0.1% a year on average.
Nick Landon, managing director of Royal Mail Parcels said: "Online-only e-retailing has become an increasingly strong area for business start-ups and is making a strong contribution to overall UK economy. With continued growth in online shopping, we can expect more significant contributions to the UK economy in the coming years."
The CEBR study of data from the Office for National Statistics revealed that sales in online-only e-retailing grew by almost 50% between 2008 and 2012. Over the same period, growth in the total retail sector was only 13.6%.
The online-only e-retail sector also made a £2.2 billion gross value added contribution to the UK economy in 2012 – up 4.7% in nominal terms on the previous year. This compared to a 1.2% year-on-year increase for the retail sector as a whole and a 1.6% increase for the UK economy in total.
The research found that around 15,000 new jobs have been created by online-only e-retailing start-ups in the past five years. Since 2008, employment in the sector has increased by 25% to 72,000 jobs in 2012.
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