The last five years of physical retail businesses have been tough for the people of Wales. Across both England and Wales, over 6,000 have closed, marking an appreciable decrease that many of us have personally witnessed. While recent market stabilisations are appearing to slowly buck this trend, the online side of the equation appears to have experienced no such struggles.
Continual expansion in the online sphere is driven by greater trends across the UK, with a study from last year reinforcing not just growth, but also high levels of confidence in the years ahead. According to this research released in 2025 by eBay UK, 78% of respondents were confident they’d experience business growth over the coming 12 months.
Mapping Online Business Success
According to this research of 1,000 polled small businesses, confidence in the coming year stemmed from four main drivers:
- Strong consumer demand. This is likely tied to increasing trends of purchasing goods online at lower prices and with more convenience than what is possible with physical retailers.
- Better tools to enable selling, including AI innovation. These elements provide easier paths to building businesses, eliminating many of the complexities that used to hold businesses back.
- Better platform support. This makes it easier to reach audiences and synchronise retail systems across platforms like eBay, Shpock, and other online storefronts.
- Better economic conditions. These include elements like easier and cheaper tools, and lower interest rates for business owners.
Combined, these factors create an environment where real or imagined concerns are more easily assuaged. For both existing and new businesses, this drives further research, innovation, and expansion into the online sphere.
Taking Advantage of the Space
The development of the online sector has opened the doors for many new businesses to explore opportunities in the online business space. With higher demand, better tools, and improved economic conditions, starting an SME in Wales has fewer barriers than ever.
Consider, as an example, trying to build an online business like an iGaming platform. New tools that aid in the creation of iGaming software, such as dynamic frontend source code, provide an easier way to create otherwise complex websites. These fully customisable systems allow developers to target areas of specific demand better. Improved economic conditions and business grants can help newcomers with their first steps, aiding in scaling and streamlined entry-level systems.
These same benefits apply to a broad range of online businesses, and with guides and support systems only improving each year. With the added benefit of being able to build a business from home to avoid the costly necessity of dedicated rental space, the appeal of this approach has proven difficult to ignore.
While recent trends make it challenging to predict exactly how the retail/online divide will settle over the next few years, the continued expansion of the online sphere appears inevitable. Wales is poised for a stronger position than ever for digital newcomers and existing online businesses looking to expand. Whether selling goods, developing your own software, or anything in between, the future is looking up.
