
25 years of e-commerce and the trends shaping its future
E-commerce has undergone a major transformation over the past 25 years and now stands at a pivotal crossroads, influenced by a variety of emerging trends. In the early 2000s, online retail accounted for just a small fraction of total sales.
Today, it is a dominant force in global commerce, driven by technological advancements, shifting consumer behaviours, and increasing competition. From the rapid rise of online marketplaces to the explosion of social commerce and the growing demand for speed and sustainability, the industry has evolved beyond recognition. As we look to the future, retailers must continue adapting to new trends, technologies, and customer expectations to stay ahead.
Online marketplaces have become the backbone of modern ecommerce, providing consumers with unparalleled convenience, choice, and competitive pricing. Platforms like Amazon, eBay, and emerging second-hand marketplaces have fundamentally reshaped how people shop. Today, 74.6% of British consumers use large online marketplaces, with over half planning to increase their usage in 2025. The second-hand economy is also booming, with nearly 47% of consumers intending to shop more on resale platforms such as Vinted or Depop this year. Therefore, it is more vital than ever for SMB retailers to embrace marketplace strategies to be better positioned to capture new customers and drive growth.
Another big area of growth we’ve seen in the last decade is social commerce. Social media platforms have evolved from engagement hubs to full-scale shopping destinations. TikTok, Instagram, and Facebook are transforming retail, allowing consumers to discover, interact with, and purchase products seamlessly within the apps they use daily. More than 66% of British consumers now prioritise brands with a strong social media presence, while 76% plan to increase their social shopping in 2025. This shift represents a fundamental change in consumer behaviour, particularly among younger shoppers who favour authenticity and influencer-driven recommendations over traditional advertising. For SMBs, social commerce is essential for growth. With more consumers shopping directly on TikTok, Instagram, and Facebook, a strong social presence boosts visibility, engagement, and sales, especially with a younger demographic.
Last, but by no means least, customer expectations are at an all-time high. Nearly 50% of British shoppers say that their online shopping standards have increased since last year, and over 60% say they will switch brands if they are offered more convenient delivery options from a competitor. Fast, flexible, and cost-effective shipping is now a critical differentiator. Consumers are also growing more cost-conscious, with 59.5% worried about rising delivery and return fees. SMBs must focus on fast, affordable shipping to meet growing customer expectations. Unreliable couriers and a lack of communication in the delivery process could result in the loss of consumer loyalty.
So, what is next? The next 25 years will be defined by groundbreaking innovations that transform the way people shop. Artificial intelligence will play a crucial role in optimising logistics and improving efficiency, while AI-powered routes will calculate better and more efficient routes, saving time and enabling faster fulfilment. Real-time tracking advancements will also further enhance the customer experience by providing precise arrival time, thus reducing uncertainty and boosting customer satisfaction.
As the e-commerce landscape continues to evolve, SMBs that embrace innovation while keeping the customer at the heart of their strategy will be the ones that thrive. Adaptability and the ability to anticipate change are crucial to staying ahead. Therefore, the retailers that prioritise speed, convenience, evolving customer expectations and the latest technologies have a higher chance of succeeding in an industry that never stands still and those who are willing to lead the way in digital transformation will shape the future of online retail for the next quarter-century.