Unlocking the Potential of Online Marketplaces for French Brands in the UK

The Future of Digital Retail
Written By James Storie-Pugh

The rise of online marketplaces has caused a revolution in the way brands reach consumers across borders. For French companies looking to expand their presence in the UK, these digital platforms offer a gateway to tap into a thriving e-commerce scene. Amazon, Tesco, and other marketplaces provide French brands with the opportunity to showcase their products to millions of potential customers, from vitamin brands and sports supplements to beauty products and beyond.

UK online marketplaces present French brands with a host of benefits to consider. They allow companies to test the waters in a new market without the need to establish a physical presence, reducing upfront costs and risks. Additionally, these platforms offer built-in logistics and customer service support, making it easier to manage distribution and sales. To succeed in this competitive environment, French brands must develop effective strategies, compare various marketplaces, and explore options like dropshipping to optimise their online presence and drive growth in the UK market.

Understanding the UK E-commerce Landscape

The UK e-commerce market has caused a revolution in the retail sector, offering substantial growth opportunities for French brands. With a projected market size of USD 280.55 billion in 2024 and an expected CAGR of 21.76% to reach USD 750.80 billion by 2029, the UK stands as Europe's largest e-commerce market 1. This remarkable growth has been fuelled by the country's high internet penetration rate of 97.8%, surpassing both Germany and the USA 2.

Market size and growth

The UK's e-commerce sector has shown impressive resilience and expansion. In December 2023, online sales as a proportion of total retail sales reached a record high of 36.1%, up from 28.2% in December 2022 3. This surge has been driven by factors such as the convenience of shopping from home, the widespread use of smartphones, and the expansion of e-commerce platforms offering a wide array of products.

Consumer behaviour

UK consumers have embraced online shopping enthusiastically, with 96.7% of the population being online 4. Each person spends an average of £866 online, placing Brits at the forefront in Europe 5. The first quarter of 2023 saw a notable 11% surge in average online expenditure compared to the same period in 2022, climbing from £399 to £442 5.

Mobile commerce has emerged as a dominant force, accounting for 57% of all online retail sales in the UK in 2023 3. However, it's worth noting that while smartphone purchases generate over 66% of all UK e-commerce sales, smartphone order sizes are typically 31.9% lower than orders made via desktop devices 2.

Popular online marketplaces

Amazon and eBay reign supreme in the UK's e-commerce arena. Amazon leads with a staggering 407 million average monthly visits, quadrupling the combined traffic of the next top 3-12 marketplaces 5. eBay follows closely with 297.9 million visits, while other platforms like Etsy and Wayfair strive to carve out their niches 5.

Emerging players like OnBuy, the UK's homegrown answer to Amazon, and European giants like Zalando and ManoMano are also making their mark in the UK market 5. These platforms offer French brands diverse opportunities to reach UK consumers, each with its unique strengths and target audiences.

Key Benefits of UK Marketplaces for French Brands

UK online marketplaces offer French brands a wealth of opportunities to expand their reach and grow their business. These platforms provide a cost-effective entry point into a new market, allowing companies to test the waters without significant capital expenditure 6. This approach enables French brands to focus their resources where they're needed most, maximising their potential for success.

Increased visibility

One of the primary advantages of UK marketplaces is the enhanced visibility they offer to French brands. These platforms attract a vast number of potential customers, providing sellers with exposure to a broader audience that may be challenging to reach through individual marketing efforts 7. By leveraging the marketplace's existing infrastructure and brand recognition, French companies can more easily gain the trust of UK consumers and increase their chances of being discovered.

Access to a larger customer base

UK marketplaces open doors to a significantly larger customer base for French brands. For instance, Amazon, a leading platform in the UK, boasts 310 million active customers and held a 31% share of UK online retail sales in 2018 6. This expansive reach allows French companies to tap into a diverse range of customers from different regions, creating export opportunities without the need for extensive international marketing 7.

Simplified logistics and operations

UK marketplaces simplify logistics and operations for French brands entering the market. Many platforms offer their own fulfilment services, such as Amazon's Fulfilment by Amazon (FBA), which handles storage, packaging, and shipping 6. This service is particularly beneficial for French companies looking to expand across Europe, as Amazon's Pan-European FBA allows sellers to treat multiple European countries as one marketplace 6.

For brands preferring alternative options, external fulfilment services like ShipStation are available 6. These services can help French brands manage inventory, process orders, and handle returns more efficiently, reducing the complexities of cross-border operations.

By utilising UK marketplaces, French brands can benefit from reduced risk, easier scaling, and cross-selling opportunities 7. These platforms provide a solid foundation for growth, allowing companies to focus on product development and customer satisfaction while leveraging the marketplace's established infrastructure and customer base.

Strategies for Success on UK Online Marketplaces

To thrive in the UK's competitive e-commerce landscape, French brands must adopt tailored strategies that resonate with local consumers. Here are key approaches to consider:

Product localisation

Adapting products and marketing for the UK market has a significant influence on success. This goes beyond mere translation; it involves understanding local preferences and cultural nuances. For instance, French brands should consider that 71% of French consumers shop based on brand loyalty, making France the third most brand-loyal country globally 8. However, UK consumers may have different priorities, so brands need to adjust their approach accordingly.

Storytelling has a powerful impact on capturing the imagination of shoppers. Including a "made in" section in product descriptions can reveal the story behind a product, creating a connexion with potential customers 8. This approach aligns with the growing interest in sustainable fashion and pre-loved luxury items, particularly among female shoppers 9.

Pricing and competition analysis

While French shoppers may not want to be seen bargain hunting, they still appreciate good deals. Special offers, discounts, and flash sales appeal to French consumers, and this strategy can be effective in the UK market as well 8. However, it's crucial to strike a balance between competitive pricing and maintaining perceived value.

The recent entry of Temu, a low-price operator, into the UK market in April 2023 has caused a disruption in the online marketplace industry 9. This highlights the importance of offering value for money while focusing on product quality to build long-term customer loyalty.

Customer service excellence

Providing exceptional customer service has a significant impact on business success. A study by McKinsey found that 71% of buying experiences are based on how customers feel they are being treated 10. This emphasises the importance of creating positive interactions at every touchpoint.

For luxury brands, the quality of service is particularly crucial, with 89% of luxury customers considering it as important as the product itself 10. To meet these high expectations, brands should focus on:

  1. Personalised experiences

  2. Efficient problem-solving

  3. Seamless post-purchase support

By implementing these strategies, French brands can position themselves for growth and success in the UK's thriving online marketplace ecosystem.

Conclusion

The UK's online marketplaces offer French brands a golden opportunity to expand their reach and tap into a thriving e-commerce scene. By leveraging these platforms, companies can showcase their products to millions of potential customers without the need for a physical presence. This approach has an influence on reducing upfront costs and risks, while also providing built-in logistics and customer service support to streamline operations.

To succeed in this competitive environment, French brands must focus on tailoring their strategies to the UK market. This involves adapting products and marketing approaches to local preferences, striking the right balance in pricing, and delivering top-notch customer service. By embracing these platforms and fine-tuning their approach, French companies can position themselves for growth and success in the UK's dynamic online marketplace ecosystem.

FAQs

What is the leading online marketplace in France?
Amazon France, part of the global Amazon group, is the predominant online retailer in France. It offers a wide variety of products, a seamless shopping experience, and a strong logistics network, making it the primary choice for numerous French shoppers.

Which online marketplace is most favoured in the UK?
Amazon is likely the most popular online marketplace in the UK. Other significant platforms include eBay, ASOS, and Etsy. The UK's e-commerce sector is thriving, with a market value of £137.4 billion in 2023, expected to increase to £152.4 billion by 2024.

What is the size of the online marketplace industry in the UK?
As of 2023, the UK's online marketplace industry has reached a market value of £137.4 billion and is anticipated to expand to £152.4 billion by the following year.

Where is the optimal platform for online sales in the UK?
For those interested in selling products online in the UK, the top platforms to consider in 2023 include Amazon, eBay, Etsy, Wayfair, Argos, ASOS, Next, and Decathlon. These marketplaces are well-regarded for their variety and reach.

James Storie-Pugh
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