Online shopping 20 years on: It started with  the secure purchase of a Sting album... now 95% of British people buy goods via internet retailers

  • In 2013, more than £91 billion was spent online 
  • That figure is expected to surpass £100 billion this year
  • One in four British people now shop online at least once a week 
  • A Sting album - priced at £7.74 - was the first item bought online in 1994 

Twenty years since the first item was sold online, 95 per cent of British people are now buying goods via internet retailers. 

On August 11, 1994, the Sting album 'Ten Summoner’s Tales' became the first online purchase for £7.74 and since then, people have taken to online shopping in their millions. 

Last year, more than £91 billion was spent online and that figure is expected to surpass £100 billion this year. 

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More than 25 per cent of British people surveyed in the research conducted by UK retailer Shop Direct said they shopped online while in bed (stock image used) 

More than 25 per cent of British people surveyed in the research conducted by UK retailer Shop Direct said they shopped online while in bed (stock image used) 

According to new research conducted by UK retailer Shop Direct, one in four British people now shop online at least once a week.    

The rising number of people using tablets has also played a part, with one in five of the 1,000 surveyed saying they used their device to shop and one in ten using a smartphone.   

Such is the enthusiasm for digital shopping, more than 25 per cent said they shop online in bed, while one in 20 said part of their morning commute involves some virtual window shopping.

On August 11, 1994, the Sting album 'Ten Summoner¿s Tales' became the first online purchase for £7.74 and since then, people have taken to online shopping in their millions

On August 11, 1994, the Sting album 'Ten Summoner’s Tales' became the first online purchase for £7.74 and since then, people have taken to online shopping in their millions

Interestingly, the most commonly purchased online item are books, which make up 64 per cent of online buys. This was followed by clothes and accessories with 59.6 per cent, music and entertainment with 55.7 per cent, electronics 54.3 per cent and holiday and travel 50.3 per cent. 

The rise of online shopping has also been quite rapid, as on average most Brits did not start to use the web for shopping until 2005 and only 12 per cent doing so before the turn of the century.   

Fiona Ellis Chadwick, senior lecturer in retail management at The Open University Business School, said: 'The early days of online shopping were very basic and the customer experience wasn't fantastic. 

'Few Brits had a computer and those that did had very slow internet access, which would take a long time to load an image let alone order a product.

'The customer experience has drastically changed since 1994. 

British people have increasingly turned away from the high street and bought more items online. This year, online purchases are expected to surpass £100 billion 

British people have increasingly turned away from the high street and bought more items online. This year, online purchases are expected to surpass £100 billion 

'In the early days of online shopping, we would go to the high street and look through various shops and choose from what was on offer. 

'Now that the whole online shopping industry has come alive, we can save time and money by undertaking the research from the comfort of our own homes and ordering for a time that suits us.' 

TOP TEN MOBILE SITES

1) Amazon UK

2) Argos

3) Amazon.com

4) Next

5) Tesco

6) Debenhams

7) Marks & Spencer 

8) ASOS

9) John Lewis

10) New Look

(From Experian marketing services, based on April 2013 data) 

TOP TEN INTERNET SITES 

1) Amazon UK

2) Apple

3) Argos

4) Amazon.com

5) Next

6) Tesco

7) Argos

8) Marks & Spencer

9) John Lewis

10) Debenhams

(From Experian marketing services, based on April 2013 data)  


STRUGGLING HIGH STREET 

The rise of online shopping has hit a number of high-profile high street firms hard, especially since the financial crisis struck in 2008.

December 2008: MFI, the furniture retailer, was one of the first major firms to go out of business at the start of the downturn, as retail sales began to fall following a sharp rise in unemployment. 

January 2009: Woolworths shut its 800 stores, bringing home to many the scale of the UK's economic collapse as the country entered recession for the first time.

February 2009: Zavvi stopped trading around Christmas - and refused to honour its gift cards, leading to widespread customer anger. 

December 2009: Borders was another entertainment behemoth to go under as sale of CDs and DVDs were squeezed by digital downloads and online retailers.

October 2012: JJB Sports closed all but 20 of its stores, which were taken over and re-branded by Sports Direct - which saw 550 employees losing their jobs. 

December 2012: Comet shut down just before Christmas, leaving nearly 7,000 staff out of work and forcing the taxpayer to pick up a £50million tab related to its bankruptcy, which was blamed on soaring energy prices and a reduction in the number of home buyers.

January 2013: Jessops was closed by administrator PwC earlier this month after years of struggling with online competition as customers turned away from traditional photography.

January 2013: HMV, which has 239 shops and 4,500 staff, announced that it was calling in administrators. The company came under fire for not honouring gift vouchers which they had been selling all over Christmas.

November 2013: Video and DVD chain Blockbuster entered administration. The store had 264 stores and a 2,000-strong workforce.

December 2013: Osborne's, one of the UK's oldest retailers established in 1830, went into administration early in December. There are 20 stores, three stores have already been closed, and 140 staff have been affected.

2014: Tie Rack, the necktie, scarf and accessories fashion retailer, is to close its 44 high-street stores and continue as an online retailer. In the 1980s there were 450 stores and along with Sock Shop, Principles and Laura Ashley.

March 2014: Albemarle & Bond, one of the largest pawnbrokers in the UK, went into administration towards the end of March. There are 188 shops and 1,000 employees. 

 

A SUCCESS STORY: THE RISE AND RISE OF ASOS 

Founded in 2000 by former advertising executive Nick Robertson, ASOS originally started life as As Seen On Screen - selling versions of outfits spotted on celebrities.

In 2004 the company launched its first own brand, ASOS Women, which has been worn by celebrities including Michelle Obama, Rita Ora and Rhianna.As well as clothing for men and women, ASOS also offers maternity wear, childrens' clothes, jewellery and beauty products - making it a one-stop shop for customers.

In 2006 the company's only warehouse was damaged in a fuel explosion, but the firm quickly bounced back and continued to grow.

In 2012 ASOS.com became the most visited fashion website in the world, per day 18-34 year olds.

ASOS now boasts websites in German, French, Italian, Spanish, Russian and Chinese, as well as offices in France, Australia, Germany, the US and London. 

ASOS has enjoyed a rapid rise since it started in 2000 and is now the most visited fashion website worldwide

ASOS has enjoyed a rapid rise since it started in 2000 and is now the most visited fashion website worldwide

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