A survey from Capterra found that 75% of UK shoppers start their online shopping customer journey through search engines, like Google or even TikTok. Another 55% prefer to start directly on the ecommerce websites or apps themselves. These two ways are the most popular ways consumers find products online.
Upon purchase, 71% of shoppers choose to complete their transactions on retailer websites or apps. As much as eCommerce marketplaces, like your Amazons, and department store sites are options, they are used less often for final purchases. Usually just to browse through products.
What Does Social Media Help With Online Shopping?
Social media platforms aren’t where most people finish their purchases, but they are a first touch point for product discovery- a necessary step in the customer journey.
The survey shows only 7% of consumers’ final step of purchases is on social media. With this, 31% intend to increase their spending on platforms like Instagram, Facebook, and TikTok in the coming year.
Instagram is the top choice for browsing products, with 69% of users relying on it for discovery. Facebook follows at 54%, and TikTok is used by 50% of social media shoppers. People use these platforms to see what’s available, find deals, and learn about small or local brands.
For small businesses, this is a perfect opportunity. 46% of shoppers go to social media to find local or smaller brands. So, companies using targeted ads and engaging content can catch the attention of potential customers, even if the purchase happens somewhere else.
How Will The New Digital Trade Agreement Benefit UK eCommerce?
We’re aware that the UK recently signed a digital trade agreement with 90 other countries through the World Trade Organisation. This deal makes it that international eCommerce is smoother and less costly for UK businesses looking to grow globally.
One major change is the introduction of electronic customs processes. This will eliminate the need for physical paperwork, so its easier for businesses to sell products overseas. E-documents and e-signatures will be recognised, speeding up trade across borders.
Also, new protections against digital fraud will help businesses and consumers feel more secure when dealing with international transactions. This agreement is expected to open up more global sales opportunities for UK businesses.
What Strategies Can Help With SME Exports?
A report from the Social Market Foundation points to different ways that small and medium-sized businesses can expand their exports. Digital tools, such as eCommerce platforms and online payment systems, have already made it easier for small businesses to reach international customers.
The report also calls for more support, especially for female-led businesses. Mentoring programs could help more women-owned companies start exporting their products. There are an estimated 70,000 UK businesses that could be exporting but haven’t yet taken the step.
For companies looking to grow, international markets present an opportunity. Certain regions have increased demand for UK products, and the logistics are becoming more affordable. For businesses ready to scale, this could lead to steady growth in exports.
What To Think About When Running An Ecommerce Startup
Experts within the industry have given very insightful tips, comments and strategies that will help anyone who is running an ecommerce startup. Its important to learn from industry leaders, whether in a way where one learns from their mistakes, or in a way where you’re actually taking their advice. This is what our experts shared:
Our Experts:
- Günther Vogelpoel, CEO, Recharge
- Helen Scurfield, CEO of Global Returns, Asendia
- Petra Smith, Founder, Squirrels & Bears
- Rebecca Burgess, Head of Martech/Commerce, Red Lorry Yellow Lorry
- Rick Smith, MD, Forbes Burton
- Hayden Smith, Head of Venture and Private Debt, Fuse Capital
- Brandon Hartman, Founder, BeyWarehouse
- Steve Sacona, Founder, Top 10 Lawyers
- Bogdan Krstic, Founder & CEO, Krstic SEO
- Andrew Radcliffe, CEO UK and Co-founder, Spyrosoft Ltd
- Alexander Otto, Head of Corporate Relations, Tradebyte
Günther Vogelpoel, CEO, Recharge
“Running an eCommerce startup with a remote workforce simply doesn’t work. To build a strong platform, you need your team in the office, exchanging ideas, offering feedback, and inspiring each other to make better decisions. The real challenge is incentivising people to want to come in— you’ve got to take the time to create a workplace that’s energising, engaging, and a place where collaboration can thrive.
“That means being creative about retaining the emotional wellbeing of staff. At Recharge we do things like hosting team activities, providing shared meals, and fostering genuine connections and friendships. If you’re offering any work-from-home flexibility, make sure Fridays are office days; otherwise, people tend to treat the last day of the week as the start of their weekend, and productivity takes a hit. A balanced approach—three days in the office, including Friday—is what I think is one of the key components for maintaining work-life balance and driving the success of the platform you’re building.”
Helen Scurfield, CEO of Global Returns, Asendia
“E-commerce startup founders should recognise that the customer journey extends well beyond the point of delivery. Returns play a pivotal role in this journey, with several studies showing that 30% of all online purchases are returned, compared to just 9% of in-store purchases. In fashion, this figure can soar to 50%, underscoring the need for a robust, consumer-centric reverse logistics strategy.
“Working with a logistics partner that specialises in returns management can provide retailers with full visibility into the returns process, enabling them to track each step of the journey. This transparency is vital for enhancing customer experience, as consumers expect clear communication and tracking options when returning items. A streamlined returns process can significantly boost customer loyalty, with 96% of shoppers stating they would return to a retailer after a positive return experience.
“A knowledgeable logistics partner also offers valuable data analytics, allowing retailers to identify trends indicating issues with specific items or suppliers. For instance, if certain products consistently generate high return rates, retailers can take proactive measures to address quality concerns or improve product descriptions.
“Additionally, partnering with logistics providers enables the identification of serial returners and potential fraudsters, helping to safeguard retailers against losses. This data-driven approach allows e-commerce businesses to fine-tune their strategies, ensuring they remain competitive while protecting their bottom line.
“Beyond customer satisfaction, a well-structured reverse logistics strategy reduces operational costs. By collaborating with logistics providers that offer scalable and cost-effective returns solutions, e-commerce startups can streamline this process and protect their margins. Ultimately, prioritising a seamless and efficient returns process is crucial for long-term success in the competitive e-commerce landscape.”
Petra Smith, Founder, Squirrels&Bears
“In addition to a bullet-proof technical set up and well-designed processes, e-commerce startups need to understand consumer behaviours to ensure customers complete the full journey – from finding the right products through to checkout.
“People don’t necessarily buy the best products and services – they buy products and services that they can understand and like, from brands they can relate to. And your customers will only be able to shop through your website if they are able to find it and easily navigate through it.
“To make the buying journey easy for them, give them all the information they need. Call your products what they are, with clear descriptions including who they are for, their impact and benefits and make it clear at first glance what they are. Your customers have aspirations and challenges they are looking to resolve, so go beyond the features of your offering, and link them back to your customers’ needs and wants.
“Small elements of marketing psychology applied in a subtle way can also make a big difference, such as including social proof whether in a form of customer rating, or the number of people who bought the same products over the last period. The reason why this is so effective is that when customers see that others had positive experiences, they are more likely to trust their judgement and feel more confident in making the purchase.
“Using scarcity and urgency can also positively impact both conversion rates and size of the basket. When customers are presented with an opportunity to buy something that is only available for a limited period, or if there are only limited quantities available, they are more likely to buy them.
“On the price setting side, it is important to note that customers perceive prices based on how they are presented. For example, our brains see prices ending in lower digits such as £99.99 as significantly lower than prices with higher leftmost digits such as £100.00, even when there is very little difference. In addition, we associate prices ending in 9 with discounts, promotions, or sales, leading us to perceive the product as a better deal, compared to similar items priced at rounded numbers.”
Rebecca Burgess, Head of Martech/Commerce, Red Lorry Yellow Lorry
“Ecommerce startup founders should be able to clearly articulate what their USP is, both as a brand and from a product perspective.
“It’s important to get this right from the early stages of building an ecommerce business for two reasons. One being that it’s more work in the long run to undo weak communications. And the second being that the ecommerce landscape is becoming so vast – from AI to sustainability – that if you don’t carve out your niche, you instantly fall behind and struggle to keep up in the long term.
“Closely observe the market and identify how the competition positions itself. You don’t want to force the industry into an echo chamber, where the same value propositions circulate and force déjà vu. Locate what makes you different and say it simply so it’s understood by your customers, investors, partners, and industry alike. This work is the perfect springboard for sales conversations, marketing campaigns, website collateral, investor pitch decks, and everything else in between.”
Rick Smith, MD, Forbes Burton
“Without a physical shop front for passersby to spot, ecommerce sites have to invest heavily in marketing. Remember when comparing to other businesses that your marketing budget should be higher than that of a traditional bricks and mortar company’s. Ecommerce sites can disappear from the public’s consciousness very quickly without constant advertising. It’s recommended to focus on online marketing via advertisements and social media to allow a quick and easy transition for potential customers to navigate to your site.”
“Ecommerce sites have one huge advantage over bricks and mortar businesses, and that’s their ability to obtain customer emails. The mailing list you’re able to build up becomes a powerful marketing tool in itself. Be careful not to bombard recipients with advertising fluff, however, as they’ll quickly learn that your company’s emails aren’t worth opening. Instead, try to keep your emails valuable to the customer: vouchers, competitions, and exclusive offers are great for keeping customers engaged.”
More from Startups
Hayden Smith, Head of Venture and Private Debt, Fuse Capital
“One of the most critical steps for any e-commerce start-up is getting the upfront structuring right to ensure access to capital, both debt and equity. Investors and lenders alike need confidence in your business, and that starts with meticulous bookkeeping and financial records (e-commerce stores are a dime a dozen these days and you need to have your house in order).
“Operating in investor-friendly jurisdictions not only helps with compliance but can also significantly boost your attractiveness to both domestic and international investors. Early attention to these details can make a huge difference when you’re ready to scale and seek funding to fuel growth.”
Brandon Hartman, Founder, BeyWarehouse
“If you want to become a reseller, one of the hardest things about starting will be finding a reputable supplier. So, you need to be clear about what you’re looking for to make the process more seamless. Are you looking to sell generic products or are aiming to sell rare, collector’s items? Also, what information are you looking for when communicating with the supplier? Knowing all these and being upfront with what you require will make the whole process a lot easier.
Be sure to ask all potential suppliers you’re contacting about their minimum order quantity. Making ensuring the MOQ is a reasonable number that you can realistically sell and provides a good discount is important. Just as important is finding out the supplier’s shipping fees and return policies before making a huge commitment.
If the supplier is able to, it wouldn’t hurt to ask them for samples of their product before placing a large order. Doing so will help you see the quality of the product and how long shipping takes before you commit.”
Steve Sacona, Founder, Top 10 Lawyers
“I’ve handled a lot of ecommerce startup cases in my time, having had the chance to look over them carefully and even learn from them throughout the entire duration of my practice.
“And with what I’ve gathered, I’d say that for anyone interested or planning on launching an ecommerce startup, having an absolute firm grasp of your target market takes center stage, and taking the time to immerse and get to know customer behavior and preferences can provide you with leaps of advantages in terms of influencing the development of a much desired product/service.
“After all, it’s not only about what you find appealing but taking into consideration just what your customers are looking for. Even a simple SWOT analysis can do the trick for most starting out. Moreover— establishing a strong online presence is almost as necessary as any other step nowadays. This basically comes down to making absolutely sure that your website is up for a smooth user experience, seeing to it that it loads quickly, as well as coming up with engaging content that speaks to your audience.
“From a legal perspective, it’s also a must to pay attention to compliance with ecommerce regulations. Founders should get acquainted with data protection laws and consumer rights to steer clear of costly legal troubles later on. This means having a definite clear terms of service and privacy policies in place, as well as ensuring that all transactions are secure.”
Bogdan Krstic, Founder & CEO, Krstic SEO
“As a CEO, I always think from an analytical/data perspective combined with an inbound marketing side of things.
“Right away, when launching, I’d start developing an SEO funnel on the website.
1. SEO is now making tons of room for eCommerce websites, as Google is out to get affiliate blogs (which is evident after HCU and the March core update). They now, on average, bring 20% more traffic simply due to being eCom and not affiliate sites.
“Now, onto the funneling. What does this exactly mean?
2. There are three types of SEO keywords:
– Top of funnel keywords, looked up by someone who just became aware of their particular problem or desire, like, f.e., “how to clean mold in grout.”
– Middle of funnel keywords, looked up by someone who is interested in the topic already but needs a little extra convincing, like, f.e., “vinegar vs bleach for killing mold.”
– Bottom of funnel keywords, looked up by someone who is ready to buy, like, f.e., “best mold spray Amazon.”
“Have content for all these keywords on the site to funnel users and capture as many leads and sales as possible without spending extra on advertising. Many of these keywords are quite easy to rank for.
3. To survive in search engine marketing, run paid ads to both make sales but also trigger brand searches. Google loves when a brand gets recognition and prominence like this, which will lift you up and consequently decrease the need for paid ads.”
Andrew Radcliffe, CEO UK and co-founder, Spyrosoft Ltd
“The AI curveball” and the challenge this poses for companies – These technology curveballs are coming more frequently. At the same time as the need for technology teams to keep up with the pace of new technology, there’s the business need to create new digital products and services which leverage these new technologies.
“Think about your exit route when you start – If you’re an ecommerce company dealing with end consumers, you’ve got two to three years max before your consumer app, for example, will reach end of life without a refresh or regular addition of exciting new features. If you’re selling to other businesses, you’ve probably got three, maybe five years max and after that the product will reach end of life.
“Think about scaling up right from the start – the development of products and evolution of software engineering practices requires getting the product and its new features out there as quickly as possible to capture the audience immediately. If you don’t and you miss it by six months or a year, that audience has already been captured by another product or service.
“The importance of cost control – Whether you’re in media or finance, you need to control your costs, you need to innovate and, and you need access to great talent for your application support and software development teams.
“Skills challenges – UK companies have often faced access to skills challenges; companies have always had cost management challenges. The big challenge today however is the aggressive improvement in technology which is making these problems even more acute. Startups are even more vulnerable and need to think about their recruitment processes and challenges from the ‘get go’.”
Alexander Otto, Head of Corporate Relations, Tradebyte.
“Ecommerce is a sector profoundly impacted by changing consumer behaviour, with technology advances heightening expectations for ease and convenience. To succeed, eCommerce startups must first carefully consider their target groups and strategy—who they are aiming for, whether it’s Gen Z, Millennials, Gen Alpha, or niche interest-based markets, and where they want to sell, be it local, global, or specialised markets. Defining these aspects early on is crucial, as they inform decisions about which services and channels will best engage their audience and differentiate them from competitors.
“Having established a clear understanding of their market and customer base, startups are then well positioned to align operational planning, including considerations such as:
“Marketplace integration: Accounting for nearly half of an estimated £322.6 billion annual online non-food sales market, marketplaces offer a huge opportunity to enter new territories, expand customer reach and increase revenue. With Brexit reshaping the ecommerce landscape for UK ecommerce brands, heightening export and logistics costs, trade friction and supply chain delays, marketplaces minimise the challenges of standalone operations, helping to navigate complex logistics and regulation, localise propositions and enable strategic assortment differentiation.
“Social selling: Social media platforms like Instagram and TikTok are revolutionising how we shop online, enabling seamless, in-app purchases and providing convenience and personalisation. Startups should examine how to encompass social to drive sales and harness vital user data that enhances engagement and streamlines purchases – especially amongst younger consumers.
“Live shopping: Live shopping allows customers to view products via livestreams, ask real-time questions, and purchase instantly. This interactive method, often featuring influencers, builds trust, urgency, and a sense of community, increasing customer engagement and loyalty.
“Augmented Reality (AR): AR tools let customers visualise products in real-life settings, reducing uncertainty and returns. AR is beneficial for trying on accessories or previewing home décor, offering a more immersive, engaging shopping experience.
“Personalisation & AI: AI-driven personalisation tailors recommendations based on browsing behaviour, helping startups predict customer needs and enhance user experiences. Hyper-segmentation and generative AI chatbots can deepen customer relationships so long as care is taken to balance personalisation with privacy concerns.
“Dynamic pricing: Real-time data can help startups implement dynamic pricing strategies, adjusting to market conditions, customer demand, and competitor pricing. Transparency in pricing also becomes crucial as customers increasingly compare products and reviews online.”
