2022
9
UK Online Retailing: Marketplaces and Peer-to-peer Selling Market Report 2022
2022-12-20T03:13:12+00:00
OX1101371
2195
158771
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“Marketplaces and peer-to-peer sites have enjoyed the same level of greater engagement as the wider online retail sector in recent years, with sales via sellers on such platforms at record…

UK Online Retailing: Marketplaces and Peer-to-peer Selling Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Online Retailing: Marketplaces and Peer-to-Peer Selling Market Report examines consumers’ behaviours and attitudes towards online marketplaces and peer-to-peer sites, a breakdown of the key players, and the impact of the cost of living crisis on the online marketplace industry and peer-to-peer selling. This report covers the value of sales through the online marketplace industry, market forecast, market segmentation and trends in the online marketplace industry.

 

Current Landscape of the Online Marketplace Industry

The cost of living crisis presents a significant opportunity for the online marketplace industry and peer-to-peer platforms to grow custom among existing users and also to draw in new customers. Financial pressures may draw in new consumers and by targeting households facing the squeeze through promotions or additional value, the online marketplace industry can build the foundation for longer-term growth.

 

Online Marketplace Industry Statistics and Key Industry Trends

Recession and the squeeze on incomes will mean consumers look to online retail for value, and fortunately, the peer-to-peer selling and online marketplace industry is well positioned to gain demand and new shoppers.

While the economic backdrop is favourable, there are barriers for marketplace platforms to capitalise on this. 29% of users believe they have received counterfeit products when using such sites, while non-users have concerns relating to low product quality, poor customer service and uncertainty that products will be delivered. The peer-to-peer selling and online marketplace industry need to do more to address these issues and ease consumer concerns.

  • Online marketplace industry size: Online retail channel will account for around 25.9% of total retail sales in 2022, up from 19.2% pre-pandemic in 2019.
  • 42% of Brits who have used a marketplace/peer-to-peer site have bought clothing/footwear.
  • 50% of online shoppers have bought products from eBay in the past 12 months.
  • 58% of UK consumers have chosen to use a marketplace/peer-to-peer site to try and save money.

Future Online Marketplace Industry Trends

In the longer term, as the need for value eases, the online marketplace industry and peer-to-peer sites will remain in a strong position. The demand for unique, luxurious and artisan products from smaller sellers will hold strong, while greater interest in circular and more sustainable buying behaviours represents a significant opportunity to drive longer-term growth within the online retailing market.

To discover more about the UK Online Retailing: Marketplaces and Peer-to-Peer Selling Market Report 2022, read our UK Online Retailing Market Report 2022, or take a look at our Retail Market Research Reports.

Quickly Understand

  • The impact that the cost-of-living crisis is having on the online marketplace industry and peer-to-peer sector.
  • The estimated value of sales through marketplace/peer-to-peer sites and breakdown by key players.
  • Profiles of key marketplaces, their target audience and key innovations.
  • Use of marketplace/peer-to-peer sites and products bought through such platforms.
  • Number of consumers selling products through such sites and attitudes to selling.
  • Reasons for shopping via such sites and barriers to using them.
  • Attitudes towards the impact of financial pressure on usage and sustainability drivers of use.

Covered in this Report

Brands: Amazon, Gumtree, AliExpress, ManoMano, Not On The High Street, Farfetch, Depop, Etsy, eBay, Vinted, Facebook Marketplace, Wish, Shpock, PreLoved, OnBuy, Folksy, Music Magpie, Vestaire Collective.

 

Expert Analysis from a Specialist in the Retail Sector

This report, written by Nick Carroll, a leading analyst in the retail sector, delivers in-depth commentary and analysis to highlight current trends in the online marketplace industry and add expert context to the numbers.

The online marketplace industry and peer-to-peer sites have enjoyed the same level of greater engagement as the wider online retail sector in recent years, with sales via sellers on such platforms at record highs. The cost-of-living crisis will drive only further interest in the sector, particularly peer-to-peer, as consumers both seek value on purchases and look to platforms to raise additional income. Underpinning all of this are the sustainability and circularity benefits of the sector, meaning this will be a key growth area of UK shopping behaviours across the next decade.”

Nick Carroll - Research Analyst

Nick Carroll
Category Director – Retail Insights

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for marketplaces and peer-to-peer sector
      • Figure 1: Category outlook, 2022-27
    • The market
    • Online retailing market rebalancing
      • Figure 2: Market size for online retailing (including VAT), 2017-22
    • Marketplace sales estimated to have grown by 67.5% between 2019 and 2021
      • Figure 3: Estimated value of sales through marketplaces and peer-to-peer sites, 2018-22
    • Marketplace sales dominant but strong opportunity for peer-to-peer moving forward
      • Figure 4: Estimated share of sales through marketplace and peer-to-peer sites by select leading players, 2021
    • Inflation the key concern for consumers and brands
      • Figure 5: Inflation, overall index (CPI) and core categories, 2022
    • Consumers’ financial wellbeing has fallen from the highs of 2021
      • Figure 6: Household financial wellbeing index, 2016-22
    • Companies and brands
    • Awareness high even among smaller players as marketplace shopping mainstreams
      • Figure 7: Key metrics for selected brands, 2022
    • The consumer
    • 72% of consumers have shopped via a marketplace/peer-to-peer site
      • Figure 8: Marketplace/peer-to-peer sites used, 2022
    • Marketplace/peer-to-peer sector highly diverse
      • Figure 9: Marketplace/peer-to-peer sites used, by household income and age, 2022
    • Fashion the most popular marketplace/peer-to-peer purchase
      • Figure 10: Products purchased via marketplace or peer-to-peer site, 2022
    • Uniqueness and value key drivers of use
      • Figure 11: Reasons for marketplace shopping, 2022
    • Three quarters have reservations about buying via a marketplace
      • Figure 12: Concerns held about shopping via a marketplace, 2022
    • Almost half of consumers have sold products online in the past year
      • Figure 13: Sites used to sell products online, 2022
    • Financial concerns have caused nearly two thirds to sell more online
      • Figure 14: Attitudes towards selling products online, 2022
    • Cost-of-living crisis driving consumers to marketplaces and peer-to-peer
      • Figure 15: Cost-of-living and the marketplace/peer-to-peer market, by current financial situation, 2022
    • Universal drivers of second-hand demand highlight a long-term opportunity
      • Figure 16: Ethical and environmental drivers of marketplace demand, by age, 2022
  3. Issues and Insights

    • The impact and opportunity for marketplaces/peer-to-peer sites amid the cost-of-living crisis
    • Diversifying marketplaces will expand the market and challenge the established order
  4. Market Size

    • Online market rebalancing after restriction-inflated demand of 2020-21…
      • Figure 17: Market size for online retailing (including VAT), 2017-22
    • …however longer term the channel will remain the growth area of UK retail
      • Figure 18: Market forecast for all online retail sales (including VAT), 2017-27
    • Marketplace sales estimated to have grown by 67.5% between 2019 and 2021
      • Figure 19: Estimated value of sales through marketplaces and peer-to-peer sites, 2018-22
    • Marketplace sales dominant, but strong opportunity for peer-to-peer moving forward
      • Figure 20: Estimated share of sales through marketplace and peer-to-peer sites by select leading players, 2021
      • Figure 21: Estimated split of marketplace and peer-to-peer sales, by type of platform, 2021
  5. Market Drivers

    • Inflation is the key concern for consumers and brands…
      • Figure 22: Inflation, overall index (CPI) and core categories, 2022
    • …and despite government support, energy prices still major concern
    • Rising interest rates mean that the pressure will move up to middle- and higher-income households
    • High inflation and rising interest rates will compound the impact of the slowing recovery
    • Consumer spending power will be curbed
    • Unemployment is at a near-50-year low
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 23: Household financial wellbeing index, 2016-22
    • …and most people are feeling the effects of price rises
  6. Marketplace and Peer-to-Peer Sites Shopped With

    • Amazon shoppers highlight some of the confusion with marketplaces
      • Figure 24: Shopping via Amazon in the past year, 2022
    • 72% of consumers have shopped via a marketplace/peer-to-peer site
      • Figure 25: Marketplace/peer-to-peer sites used, 2022
    • Marketplace/peer-to-peer sector highly diverse
      • Figure 26: Marketplace/peer-to-peer sites used, by household income and age, 2022
  7. Products Purchased on Marketplaces

    • Fashion is the most popular marketplace/peer-to-peer purchase
      • Figure 27: Products purchased via marketplace or peer-to-peer site, 2022
      • Figure 28: Products purchased online, total and via marketplace/peer-to-peer sites, 2022
    • Product purchasing skews younger but also more affluent
      • Figure 29: Products online and products purchased via marketplace or peer-to-peer site, 2022
  8. Reasons for Marketplace Use

    • Uniqueness and value key drivers of use
      • Figure 30: Reasons for marketplace shopping, 2022
      • Figure 31: Reasons for marketplace shopping, by leading platform used, 2022
    • Value driver stronger among less affluent households, but opportunity to tap into ethical for more affluent shoppers
      • Figure 32: Reasons for marketplace shopping, by household income group, 2022
  9. Concerns about Marketplace Shopping

    • Three quarters have reservations about buying via a marketplace
      • Figure 33: Concerns held about shopping via a marketplace, 2022
    • Counterfeit concerns a barrier to attracting new shoppers
      • Figure 34: Concerns held about shopping via a marketplace, by current marketplace use, 2022
  10. Selling on Marketplaces and Peer-to-Peer Sites

    • Almost half of consumers have sold products online in the past year
      • Figure 35: Sites used to sell products online, 2022
    • Sellers represent future shoppers and must be valued
      • Figure 36: Sites used to sell products online, by average age and socio-economic group, 2022
    • Financial concerns have caused nearly two thirds to sell more online
      • Figure 37: Financial drive to sell online, 2022
    • Lessons from past recessions holding true but barriers need to be lowered
      • Figure 38: Financial drive to sell online, 2022
  11. Attitudes to Marketplace Shopping

    • Cost-of-living crisis driving consumers to marketplaces and peer-to-peer
      • Figure 39: Cost-of-living and the marketplace/peer-to-peer market, by current financial situation, 2022
    • Detection and reassurance around counterfeits a key issue moving forward
      • Figure 40: Counterfeit/fake products and marketplace shopping, by age, 2022
    • Universal drivers of second-hand demand highlight a long-term opportunity
      • Figure 41: Ethical and environmental drivers of marketplace demand, by age, 2022
  12. Brand Research

    • Brand map
      • Figure 42: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 43: Key metrics for selected brands, 2022
    • Brand attitudes: Great customer service key for Amazon consumer perception
      • Figure 44: Attitudes, by brand, 2022
    • Brand personality: Accessibility key attribute for eBay’s success
      • Figure 45: Brand personality – macro image, 2022
    • Key player in the marketplace gives Amazon association with profit focus
      • Figure 46: Brand personality – micro image, 2022
    • Brand analysis
    • Amazon: No.1 player within the marketplace but needs to work on ethical perception
    • eBay: opportunity to entice Gen Z consumers and grow usage
    • Etsy: exclusive and aspirational but needs work on its service and reliability
    • Vinted: wide awareness but needs to encourage usage among 45+
    • Gumtree: basic and lacking innovation leads to low brand perception
    • Depop: lacking brand awareness and trust
  13. Brand Profile: Amazon

      • Figure 47: Amazon brand summary, 2022
    • What it does
      • Figure 48: Amazon: revenue breakdown by key business area, 2019-21
    • Consumer profile
      • Figure 49: Amazon and Amazon Marketplace customer profile, 2022
    • Communication and marketing
    • How Amazon communicates to its consumers and target new users
    • Advertising campaigns
    • Innovation and launch activity
    • Working hard to eliminate counterfeits
    • Accelerate to drive sales at home and globally
    • Marketplace support, on or off Amazon
  14. Brand Profile: Depop

      • Figure 50: Depop brand summary, 2022
    • What it does
      • Figure 51: Depop: revenue breakdown by location, 2020 and 2021
    • Consumer profile
      • Figure 52: Depop: brand usage in the past year, by age, 2022
    • Communication and marketing
    • How Depop communicates to its consumers and targets new users
    • Advertising campaigns
    • Innovation and launch activity
    • Venturing into new sectors
    • New features within Depop app
    • Pop-ups
    • Collaborations
  15. Brand Profile: eBay

      • Figure 53: eBay brand summary, 2022
    • What it does
      • Figure 54: eBay: revenue breakdown by geographic area, 2019-21
    • Consumer profile
      • Figure 55: eBay use in the past year, by age group, 2022
    • Communication and marketing
    • How eBay communicates to its consumers and target new users
    • Advertising campaigns
    • Innovation and launch activity
    • Authenticity the name of the game
    • Tapping into the refurbished market
    • Rewarding the most loyal shoppers
    • Tapping into the demand for circularity
  16. Brand Profile: Etsy

      • Figure 56: Etsy brand summary, 2022
    • What it does
    • Consumer profile
      • Figure 57: Etsy: brand usage in the past year, by age, 2022
    • Communication and marketing
    • How Etsy builds brand awareness
    • Change in direction
    • Innovation and launch activity
    • New Etsy seller app
    • Visual search feature
    • Etsy taps into clothing
  17. Brand Profile: Facebook Marketplace

      • Figure 58: Facebook Marketplace brand summary, 2022
    • What it does
    • Consumer profile
      • Figure 59: Facebook Marketplace: brand usage in the past year, by age, 2022
    • Communication and marketing
    • Innovation and launch activity
    • Facebook shipping service launches in UK
    • Tackling fraudulent activity
  18. Brand Profile: Not On The High Street

      • Figure 60: Not On The High Street brand summary, 2022
    • What it does
    • Consumer profile
      • Figure 61: Not On The High Street: brand usage in the past year, by age, 2022
    • Communication and marketing
    • High marketing standards benefit sellers and reach consumers
    • Targeting the younger customer
    • Christmas campaign
    • Innovation and launch activity
    • New branding for NOTHS
      • Figure 62: Not On The High Street, New Branding, 2022
    • FML store opening
      • Figure 63: Not On The High Street, FML Edit, 2022
  19. Brand Profile: Vinted

      • Figure 64: Vinted brand summary, 2022
    • What it does
    • Consumer profile
      • Figure 65: Vinted: brand usage in the past year, by age, 2022
    • Communication and marketing
    • How Vinted communicates with its consumers
    • Advertising campaigns
    • Innovation and launch activity
    • Vinted launches new shipping platform
      • Figure 66: New Locker Network offered by Vinted, 2022
    • New entertainment category
    • Vinted partners with InPost
  20. Appendix – Data Sources, Abbreviations and Supporting Information

    • Data sources
    • VAT
    • Abbreviations
    • Consumer research methodology
  21. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 67: All online retail sales, market size and forecast, at current and constant prices, 2017-27
      • Figure 68: All online retail sales, current price prediction intervals, 2022-27
    • Market drivers and assumptions
    • Forecast methodology

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This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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