6 consumer habits to know before expanding your brand to the UK

The UK market is an attractive destination for e-commerce brands, as it has the most advanced e-commerce market in Europe. According to Statista, over 80% of the population makes e-commerce purchases. This makes buying online the norm for shoppers everywhere in the UK. 

As such, e-commerce has undeniably become essential for shoppers everywhere in the UK, and there is an ample amount of data to support this. But, there is a lot to consider before expanding to the UK, and consumer habits are essential to your market research. 

In this article, we will cover: 

• How catering to UK consumer preferences impact your brand’s expansion
• The UK as a potential market for brand expansion
• 6 habits of UK consumers you need to know
• Expand your brand easily with a 3PL partner
• How to expand your brand to the UK with Hive

How catering to UK consumer preferences impact your brand’s expansion

Before expanding your brand to the UK, it is essential to understand the habits of British shoppers, especially since it is a growing market and thus holds a lot of potential to grow your brand.

The number of e-commerce users in the UK is consistently increasing, and by 2025, it is projected to reach 90%. 

By understanding and catering to British consumers' habits you can ensure a successful entry and growth into the UK market. Here are some ways consumer preferences can impact your brand’s expansion: 

Sales conversion

When products or services meet the specific needs and preferences of consumers, it encourages them to make purchasing decisions more readily. By tailoring your offering to match consumer needs you can increase sales conversion rate and therefore increase your revenue. 

Sustainable growth

By consistently adapting to consumer preferences you are more likely to experience sustainable growth in the new market. As it becomes an integral part of the local consumer's lifestyle, your brand can maintain steady revenue streams over time.

Why the UK should be the next step in your expansion

The United Kingdom stands as the fourth-largest e-commerce market globally, with a predicted revenue of 107,904.44 million pounds (125,720.94 million euros) by 2023, surpassing other European countries such as Germany. 

Revenue is expected to show an annual growth of 8.3% in 2023, with the UK market expecting to contribute to the worldwide e-commerce growth rate of 9.6% in 2023. 

Top 5 e-commerce industries in the UK and their percentage to revenue

Expanding to the UK is a great opportunity for brands in the fashion or food and personal care industries, as they are the top 2 e-commerce industries in the UK. 

Nonetheless, other e-commerce industries are also growing and increasing revenue. The leading 5 e-commerce sectors in the UK and their respective revenue contributions are as follows:

• Fashion: 30%
• Food & Personal Care: 24.1%
• Electronics & Media: 18.6%
• Toys, Hobby & DIY: 15.7%
• Furniture & Appliances: 11.6%

6 habits of UK consumers you need to know

1. Reliance on comparison sites to make a purchasing decision

Price plays a crucial role in British consumers' decision-making process, influencing 59% of their shopping choices. Approximately 35% of British shoppers rely on comparison sites to find the best deals.

British consumers seek the most competitive pricing, so ensure you meet their expectations by keeping your pricing low and emphasizing the value of your product.

You can also incorporate marketing campaigns with special discounts to ensure British consumers feel they have the best deals with your brand. Such as: 

• Including discount codes for the next purchases 
• Adding promotions with every purchase over a certain amount 

Don’t forget to let your customer know about your promotions and discounts. Showcase them on your website or use promotional flyers. 

2. Spending on marketplaces due to convenience 

Around 70% of UK shoppers prefer marketplaces as their most convenient online shopping method. 

According to the state of online marketplace report, consumers find marketplaces better able to meet their needs than conventional e-commerce sites which only offer products from a single retailer. 

The report found that as consumers shop more frequently online, marketplaces make up a higher percentage of their overall spending. That is due to a combination of convenience and cheaper prices. 

Take advantage of the success of marketplaces in the UK and sell your products through them. By leveraging online marketplaces your brand can have access to new customers, increase sales, and have an easier launch into the UK market. 

While there are several marketplaces all over the world, there are a handful that specifically serve the UK market. 

To facilitate the process we compiled the top 3 marketplaces in the UK where you can sell your products.

Amazon UK

Amazon.co.uk has ranked as the top marketplace website in the UK in 2023. Selling on the most-well known marketplaces gives you more access to buyers, and improves your brand credibility, as consumers tend to trust Amazon sellers thanks to their strong brand.

eBay UK

eBay is the 9th most visited website in the UK and has 279 million visits each month. With the same benefits of selling on Amazon, such as access to millions of potential buyers, eBay has lower fees for sellers and regularly runs promotions to incentivise buyers. 

Etsy 

Etsy has over 96 million active buyers worldwide, and over 7.5 million sellers. Selling on Etsy is ideal for smaller brands to grow, as it provides easy-to-use tools to manage and promote your personal marketplace, and is fully transparent with fees.

3. Loyalty to brands that offer the best customer experience

Over 65% of British consumers consider themselves loyal shoppers, exceeding the global average of 61%. Building strong relationships with UK customers through personalized services, social media, and unique experiences can be a winning strategy. 

Instead of merely selling a product, focus on the whole buying experience. 

Here are some ideas to create an exceptional customer experience:

Personalize your packaging: 

Create memorable unboxing experiences for your customers through custom boxes, stickers, fliers, tape, stamps, filling material and more. 

Implement partial fulfillment: 

Partial fulfillment means separating your customer’s order so that they can receive in-stock SKUs on time, and not have to wait for the out-of-stock SKU to become available. This fosters brand loyalty by demonstrating your commitment to meeting your customers needs.

Provide personalized recommendations: 

Not only does this tactic create a tailored shopping experience, but it can also increase online sales. 91% of consumers are more likely to buy from a brand that provides personalized recommendations.

Create personalized email campaigns: 

Email marketing is still one of the most lucrative customer contact channels. In fact, 59% of consumers claim that their buying decisions are influenced by marketing emails. Start by collecting subscriber data and use it to personalize your email content for each recipient.

Implement loyalty programs:

 73% of individuals aged 18-24 in the UK find loyalty programs effective and 59% believing that all brands should offer loyalty programs. Leverage on loyalty programs and go beyond discounts by adding exceptional customer experiences.

4. UK consumers are keen to engage with online content

In the UK, advertising campaigns, particularly on social media, hold considerable potential. More than 40% of UK consumers are likely to spend more on brands they have engaged with through social media advertisements. 

As the UK is culturally diverse across regions, launching hyper-localized ad campaigns that target specific regions can be highly successful. By tailoring campaigns to the lifestyles and preferences of specific UK regions, you can create advertisements that truly resonate with the target audience. 

Some examples of ways to resonate with your target audience can be:

• Localizing your flyers with the slang of the buyer’s region
• Adding flyers or gifts related to a certain influencer campaign or location
• Leveraging influencers for marketing campaigns to help establish trust with the target audience and make your brand feel more naturally connected to the culture.

5. Emphasis on sustainable and ethical consumption

Approximately 68% of British consumers consider a brand's ethical behavior before making a purchase, which encompasses factors such as employee treatment, supply chain logistics, environmental policies, and animal welfare. 

Sales of organic and sustainable products have experienced growth in recent years, with organic product sales increasing by 5.2% in 2022. 

To capitalize on this trend, you can implement sustainable practices within your supply chain, such as using environmentally friendly packaging and reducing your carbon footprint through green delivery. 

Demonstrating your commitment to ethical practices and providing good and safe working conditions can also enhance your brand's reputation among UK consumers.

6. Expectation of next or same-day delivery 

More than 56% of British shoppers consider same-day delivery to be important. 

The COVID-19 pandemic has led to an increased reliance on online shopping, significantly impacting consumer expectations regarding delivery options. Amazon's introduction of same-day delivery through Amazon Prime has further raised these expectations. 

Offering fast shipping options can not only provide a competitive edge but also increase the likelihood of customers placing orders. 

Additionally, 41% of consumers are willing to pay extra charges for same-day delivery, which can contribute to higher profit margins. 

By prioritizing rapid shipping and ensuring efficient delivery of products to customers, you can boost customer satisfaction and encourage increased spending on your website.

Expand your brand to the UK easily with a 3PL partner

Having a 3PL (third-party logistics) partner for your expansion offers numerous advantages when expanding your brand to the UK. 

A 3PL partner, such as Hive, comes with the expertise and infrastructure necessary to efficiently manage and streamline your logistics operations. 

Hive is a 3PL partner that helps you streamline and manage your entire fulfillment process; from integrating your shops and marketplaces, booking your freight, picking and packing your orders, accelerating your delivery, to handling your returns. All of this through the Hive App. 

Partnering with Hive as your 3PL partner enables you to offer customers eco-friendly packaging made from recycled cardboard and utilize filling material derived from recycled resources. 

Hive can offer you climate-neutral delivery options allowing your brand to reduce its carbon footprint and attract sustainable British consumers. 

You can resonate with your customers with the Hive add-on rules, which is a set of automotations you can create in the Hive App to add certain extras to your orders. By using the add-on rules you can create successful marketing campaigns by incorporating gifts, discounts, personalized cards, and flyers.

Expand your brand to the UK through Hive’s fulfillment network

Expanding your brand to the UK and across Europe can be made easier with Hive’s fulfillment network.

Hive offers access to fulfillment centers across Europe, including the UK, enabling efficient distribution of your inventory and providing one to two day delivery across the continent. 

By leveraging Hive's network, you can streamline your operations, reach a broader customer base, and enhance the customer experience.

Partner with Hive for a seamless integration into the UK market. Discover more about our services and how we can benefit your brand here.