The online retail sector has seen the number of news businesses triple over the past five years, seeing more growth than any other business sector.
The number of new online retail businesses has skyrocketed from 7720 in 2013 to 25,675 in 2018, marking the highest growth rate of any of the 237 business sectors.
According to a new report from private equity investment firm Growthdeck, the sharp rise in new ecommerce businesses has also driven the growth of industries which support online retailers behind the scenes.
Over the last half decade the number of new warehousing and courier businesses have also doubled in size, while the number of air transport businesses has risen sharply.
Despite this steep increase, the failure rate of ecommerce businesses is also much higher than average, with 13,195 businesses closing last year.
“Entrepreneurs are taking advantage of unprecedented change in online retail,” Growthdeck’s head of business development Gary Robins said.
“That’s despite the sector already notching up 20 years of strong growth.
“There is also a relatively high attrition rate among e-commerce businesses, which points to a need for funding to get some of these businesses out of the startup stage and begin to really build scale.”