UNSALThe UK is one of the most developed online retail markets in the world: according to ONS data, roughly a quarter of all retail spending now happens online. That maturity brings scale — and customers whose expectations are already set by the largest players.
Delivery and returns are the product
UK shoppers expect fast, cheap or free delivery, real-time tracking and simple returns. Next-day is standard for many categories, and out-of-home options — parcel lockers and collection points from InPost, Evri, DPD and others — have grown rapidly. Every one of these promises has a cost that needs to be built into the price and the fulfilment set-up.
- Under the Consumer Contracts Regulations, most online purchases can be cancelled within 14 days of delivery.
- Returns rates vary sharply by category; fashion is far higher than toys or homeware.
- A reliable 3PL with good carrier rates is usually cheaper than self-fulfilment once volumes grow.
Own site or marketplace?
A direct-to-consumer site gives you the customer data, the brand experience and better margin. Marketplaces give you traffic on day one. Most successful brands run both, with the own site holding the full range and the marketplaces carrying the fastest sellers. The decision is less about either/or and more about how much margin you are willing to trade for reach.
New consumer rules
The Digital Markets, Competition and Consumers Act 2024 gave the Competition and Markets Authority power to fine businesses directly for consumer law breaches. Since April 2025 it has also banned fake reviews and hidden "drip" pricing, where mandatory fees appear only at checkout. Online sellers should review how they collect reviews, display prices and run subscription offers.
Selling from abroad
Overseas sellers shipping directly to UK customers face import VAT rules introduced in 2021: for consignments up to £135, VAT is charged at the point of sale, and online marketplaces are responsible for collecting it. The government has also announced that it will remove the customs duty relief on low-value imports. For most established brands, holding stock in a UK warehouse remains the faster and cleaner model.
Key takeaways
- Price in delivery and returns from the start.
- Use marketplaces for reach and your own site for margin and data.
- Check reviews, pricing and subscriptions against the 2024 Act.
This article is general information, not legal, tax or financial advice.
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