Best UK regions to start an e-commerce business
| Region | Average e-commerce manager salary in region’s largest city (in GBP) | Warehouse prime rent (in GBP per square foot) | Count of VAT/PAYE businesses (2025) | Count of new business births (2023) | Count of new business deaths (2023) | 5-year survival rate (%)* | Score (/10) |
| South East | 50,808 | 23.50 | 405 | 42,955 | 42,345 | 41.40 | 8.28 |
| South West | 44,395 | 9.80 | 235 | 22,875 | 22,695 | 45.20 | 8.02 |
| London | 50,129 | 29.00 | 538 | 74,650 | 65,855 | 38.60 | 7.65 |
| East | 42,427 | 23.50 | 271 | 30,360 | 29,360 | 40.40 | 7.56 |
| Yorkshire and The Humber | 45,972 | 9.50 | 191 | 22,280 | 23,160 | 41.00 | 7.56 |
| West Midlands | 59,459 | 11.00 | 216 | 26,275 | 28,655 | 34.70 | 6.97 |
| North West | 37,766 | 11.00 | 266 | 33,005 | 33,270 | 36.10 | 6.87 |
| Scotland | 37,407 | 9.50 | 173 | 18,275 | 17,295 | 39.80 | 6.55 |
| East Midlands | 36,298 | 10.50 | 181 | 20,495 | 21,265 | 40.00 | 6.44 |
| North East | 32,643 | 8.0 | 73 | 8,965 | 8,980 | 39.8 | 5.86 |
| Wales | 34,872 | 9.0 | 105 | 10,520 | 11,300 | 36.6 | 5.86 |
South East England emerges as the top destination for e-commerce entrepreneurs
According to a new analysis by Amazon accountants Archimedia Accounts, the South East of England stands out as the best region in the UK to launch an e-commerce business. The area offers a compelling blend of opportunity and reward, with e-commerce managers in Brighton and Hove, the region’s largest city, earning an average salary of £50,808. Although warehouse prime rents are relatively high at £23.50 per square foot, this hasn’t dampened the region’s entrepreneurial spirit. The South East boasts a thriving start-up scene, with 405 VAT/PAYE-registered e-commerce businesses, 42,955 new business births in 2023, and a 5-year survival rate of 41.4% – testament to its strong business confidence and sustainable growth potential.
South West: affordable growth and strong staying power
The South West offers a balanced environment for e-commerce startups, combining affordable warehouse rents (£9.80 per sq ft) with a strong five-year survival rate of 45.2%, the highest in the UK. With e-commerce managers earning £44,395 in cities like Bristol and a healthy stream of 22,875 new business births, the region’s steady growth and lower overheads make it an attractive choice for sustainable ventures.
London: high risk, high reward
As the UK’s economic powerhouse, London boasts the largest number of new business births (74,650) and the highest concentration of e-commerce enterprises (538). E-commerce managers earn competitive salaries (£50,129), but steep warehouse rents (£29 per sq ft) and a lower five-year survival rate (38.6%) reflect the city’s intense competition and elevated operating costs.
The North: lower costs, but slower momentum
While the North of England offers more affordable warehouse space, with rents as low as £8–£11 per sq ft, it lags in key indicators of e-commerce growth. Regions like the North East and North West face lower managerial salaries (around £32,000–£38,000) and modest survival rates hovering near 36–40%. The North sees fewer new business births and overall slower momentum, suggesting that affordability alone isn’t enough to drive long-term e-commerce success.
Finance Experts Reveal Impacts of Store Closures on Businesses
Experts at Amazon accountants Archimedia Accounts discuss what makes an e-commerce business a success in the UK:
“While the North benefits from lower rents and operating costs, true e-commerce success depends less on location and more on strong financial management. Northern businesses can close the gap by focusing on accurate cash flow planning, VAT compliance, and data-driven decision-making. Leveraging affordable overheads with smart reinvestment, automation, and efficient inventory control will help transform cost advantages into sustainable growth and profitability.
“And for those launching an e-commerce business in London, where high costs and fierce competition are the norm, financial discipline is key. Success often hinges on effective cash flow management, precise pricing strategies, and efficient stock control to safeguard margins. New sellers should also utilise accounting tools that integrate with platforms like Amazon and Shopify, ensuring real-time tracking of expenses and maintaining VAT compliance. With careful budgeting and smart reinvestment, even in a saturated market, London entrepreneurs can carve out a profitable niche.”