First lockdown created surge in e-commerce startups

The first Coronavirus lockdown caused a surge in online entrepreneurs, with nearly 16,000 e-commerce businesses created between March and July.

A new report from the Royal Mail said 315,000 companies were incorporated in the UK during lockdown, up seven per cent from the same period in 2019.

In the second quarter, 176,000 startups were recorded, the highest for any second quarter on record - with the highest rate of new business creation within e-commerce.

With a second lockdown for England now due to start later this week, many e-commerce startups will be put to the test during the peak trading period, as the UK enters a Christmas shopping season with non-essential retailers forced to close.

Nick Landon, chief commercial officer at Royal Mail, commented: “It is very promising to see this level of new business creation, the narrative for businesses during and post lockdown is not one purely of survival, but also of resilience, resurgence and growth.

“The e-commerce sector has seen huge growth this year and at Royal Mail we understand the importance of our parcel services in keeping the UK connected – particularly during such unprecedented times."

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