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NextGeneration Retail Authors Jordan SullivanHead of Economic Policy Charlie MercerPolicy Director AboutStartup Coalition Startup Coalition, formerly the Coalition for a Digital Economy (Coadec), is an independent advocacygroup that serves as the policy voice for Britain’s technology-led startups and scaleups. Startup Coalition was founded in 2010 by Mike Butcher, Editor-at-Large of technology news publisherTechCrunch, and Jeff Lynn, Chairman and Co-Founder of online investment platform Seedrs. StartupCoalition works across a broad range of policy areas that matter the most to startups and scaleups:access to talent, access to finance & regulation. We have over 4,000 startups on our mailing list. Startup Acknowledgements Many thanks to Beauhurst for the underlying dataset supporting the quantitative analysis in this research.Thanks also to the startups and founders that fed into this report, and particular thanks to those profiled. ExecutiveSummary This report explores the transformative role of eCommerce in the UK's retail landscape, highlighting thesector's exponential growth, its economic contributions, and the opportunities it presents for innovation. The UK has established itself as a hub for eCommerce innovation, supported by a rich history oftech-enabled consumer marketplaces. Startups and scaleups engaged in the online economy haveraised £13.6 billion to date, employ over 464,000 people, and generated £95.7 billion in turnover in 2023 The eCommerce sector includes a range of businesses. First-Party Sellers sell directly to businessesand consumers and form the lion’s share of firms in the sample, meanwhile Third-Party Marketplacesoffer the ability for sellers to access demand from buyers via an aggregated platform. Powering both of The UK is home to all of these types of eCommerce firms, with its own eCommerce engine These startups and scaleups are accelerating the digitalisation of the UK economy, enabling bricks andmortarretailers to diversify their revenue streams and opening up the global market for small Tomeaningfully support the sector,therefore,this report calls on the Government to learn fromwell-intentioned, but poorly executed measures of the past, and also to use its focus on reformingbusiness rates to radically rethink the high street. In the first place, this means emulating Australia's"SmallBusiness Technology Investment Boost,"to promote eCommerce adoption among smallbusinesses across the UK. Secondly, the Government should reform business rates to support flexible This report is a celebration of the power of the online economy, powered by UK Startups; it is also arallying cry for Labour to grasp the nettle and ask the hard questions about the future of the 21st century Introduction For the last two decades, the UK has been at the vanguard of next generation retail technologies, with In 1998, as the dot com surge kicked off in earnest, Martha Lane Fox and Brent Hoberman foundedLastminute.com, transforming travel and leisure for millions of consumers through an internet enabledmarketplace. A few years later, Just Eat relocated to London from Denmark, part of a wave of foodeCommerce players that opened up a world of cuisines to living rooms around the UK. Next, with the riseof mobile phones and the platform economy, apps like Deliveroo and Depop arrived in our pockets. Today, this spirit of eCommerce entrepreneurship is as vibrant as ever, with a whole new generation ofstartups and scaleups building on the foundations of the giants that have come before, and harnessing The success of these technologies is down to the value they bring to end consumers. In 2022, StartupCoalition commissioned polling to understand consumer retailing habits, finding that nearly 6 in 10 said they would find it hard to buy the products they need without online shopping.1We also found that, onaverage, consumers reported buying clothes online more than in person, were twice as likely to buyelectronic goods online as in person, and were three times more likely to buy books online than in abookshop. Consumers also reported often combining both in person and online shopping. More than half Online shopping is a core part of the economy today, and it is built on the back of tech. Startup Coalition exists to celebrate entrepreneurship in the UK and ensure that the UK Governmenthears the voice of founders at the policymaking table. For the first time in 14 years, the Labour Partyformed a Government in July 2024. The last Labour Government successfully nurtured the first wave of This report celebrates this next generation, from marketplaces packed with gifts, gadgets and goodies, tosoftware firms providing the engine behind eCommerce, the UK is home to an eCommerce startup Let’s dive in. Methodology This report uses data from theBeauhurstdatabase, a leading source of private company data for theUK. The data for the first section of the report is based on all privately owned firms in the Beauh