The state of UK eCommerce: Is price still the defining factor?

Article topics

1. Little luxuries in a cost-of-living crisis
2. Convenience over cost: the appeal of free deliveries and returns
3. A backlash against cheap products on social media
4. Trust and transparency lead the way
5. Price is still important, but shoppers want other things too

A study from 2022 showed that a low price was the most important factor for 60% of online shoppers.

And at the time, this made a lot of sense. People were recovering from a pandemic and subsequent lockdown, the Ukraine invasion had led to a massive spike in oil prices, and the inflation rate in the UK was at an all-time high.

However four years later, are shoppers still looking for the lowest online prices?

As part of our investigation into the state of UK eCommerce in 2026, we’re taking a look at online shopping and prices. Is cost still the key factor for shoppers, and if not, what other factors have come into play?

Little luxuries in a cost-of-living crisis

It’s reasonable to say that we are still in a cost-of-living crisis. While inflation has gone down since 2022, prices haven’t fallen and some costs, like fuel, have increased due to conflict in the Middle East.

Economists talk of the Lipstick Index, a term coined by Leonard Lauder of Estee Lauder in 2001. He noted that as the economy got worse, lipstick sales improved.

The logic behind this is that while people can’t afford big-ticket items like cars and holidays, they can afford to treat themselves to smaller luxuries, like make-up, perfume, and gourmet food.

According to Nielsen IQ, the beauty market in Western Europe grew 4% over the last year, showing that people are willing to splurge on treats to make themselves feel confident and boost their mood.

Convenience over cost: the appeal of free deliveries and returns

People are typically willing to pay a little extra if it means they save time online and can return products with confidence. 58% of shoppers admit to adding more items to their carts to qualify for free shipping, while 60% hesitate to buy from online stores that don’t offer free returns.

With an increasing number of eCommerce stores and products available in 2026, customers need to do a lot of research to find exactly what they need. However, they can now save time (and stress) for a premium with agentic commerce.

Agentic commerce is when AI tools research and purchase the right product for your needs. You tell the tool what you want, and it shortlists relevant items, even completing the transaction on your behalf.

A backlash against cheap products on social media

While customers still love hunting for bargains, many have turned away from cheap drop-shipping sites, which often combine slow delivery times with poor-quality products.

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A post shared by maggie mcgaugh (@maggiemcgaugh)

There are many social media accounts where users vent their frustration at cheap products. For example, we love Maggie McGaugh’s Instagram account, where she purchases items from dropshipping sites and honestly reviews them in her posts.

Deinfluencing, where social media content creators tell subscribers that they don’t need to buy expensive products, is also on trend in 2026, especially with Generation Z and Generation Alpha.

It’s not just on social either; countries and organisations are leading the charge against large marketplaces and manufacturers. The European Union recently fined Chinese online retailer Temu €200 million after a mystery shopping exercise uncovered unsafe and illegal products.

From 1 July 2026, the EU will also be implementing a new levy on items priced under €150, in an attempt to curb sellers like Temu and Shein.

Trust and transparency lead the way

If you want to get a one-off customer, lower your prices. If you want to foster loyalty and encourage customers to buy from you again and again, give them a reason to trust you.

4 out of 5 customers say they need to trust a brand to consider buying from it. Showcasing and acting on your values, using trust signals, and building a community around your business are great ways to build trust and encourage revenue without resorting to sales and special offers.

According to Adobe, 7 out of 10 customers say fair pricing is one of their top reasons for repeat purchases. If prices change without good reason or explanation, they’re likely to walk away.

Dynamic pricing, where prices increase or decrease depending on demand, is a particular bugbear of shoppers, with 65% of UK shoppers disliking it. The practice came under fire at the end of 2024 when Oasis announced their reunion tour, and fans were frustrated by the extortionate ticket prices on Ticketmaster.

While the Competition and Markets Authority (CMA) concluded that Ticketmaster had not employed dynamic pricing during Oasis ticket sales, the CMA advised that the ticket vendor needed to be less misleading in future.

In conclusion: Price is still important, but shoppers want other things too

While price is still a defining factor in 2026, shoppers aren’t looking for the cheapest products by default. Customers are willing to pay more for an item if the quality is good, the customer experience is exceptional, or simply if it brings them joy.

In fact, customers are willing to pay 16% more for products if businesses provide an exemplary experience.

What does this mean if you run an eCommerce store?

Look at how you provide added value to customers. Understand your target audience and what they want, and how this aligns with your own company values.

We hope you enjoyed this look at 2026 eCommerce trends. Why not check out the rest of our series of articles?

• 5 lessons businesses can learn from Amazon
• Are businesses moving away from online stores?
• The rise of the online marketplace

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It’s important to work with a digital marketing agency that knows the ins and outs of eCommerce. By partnering with a team that understands the latest marketing trends, news, and developments, you can get the edge over your competitors and make more sales.

At Xigen, our skilled, knowledgeable team of eCommerce specialists will make sure you stand out from the crowd and provide value to your customers.

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