Online retail sales, autumn 2026: online share rises to 28.8% of spending

This article is for online retailers, marketplace sellers and direct-to-consumer brands who want to know how online spending is trending and what it means for their cash flow. Two sets of figures, from the Office for National Statistics and the British Retail Consortium, show online sales holding up better than shopping in store. Below we set out the figures and the funding options for e-commerce businesses. Smart Funding Solutions is a broker, not a lender: we compare whole-of-market options across 300+ lenders, arranging funding from £10,000 to £20 million.

01The official figures

The ONS retail sales bulletin for August 2026, published on 18 September, found:

• The proportion of retail sales made online rose to 28.8% in August, from 28.4% in July.
• The value of online spending rose 2.5% over the month, after a 4.2% fall in July.
• Total retail sales volumes rose 0.5% in August and were 2.4% higher than a year earlier.

The ONS said non-store retailers, mostly online sellers, partly recovered in August from the fall in July. Its September figures are due on 23 October.

02The BRC picture for September

The BRC-KPMG Retail Sales Monitor for the five weeks to 3 October 2026 found online non-food sales rose 0.7% year on year, against 1.0% growth a year earlier, while in-store non-food sales rose just 0.1%. Online penetration, the share of non-food sales made online, was 38.3%, up from 37.9%.

KPMG's Linda Ellett said retailers "will need to balance customers' increasing appetite for value against the need to protect margins". For online sellers, that often means more discounting and more spending on advertising to win the sale. Our article on September's retail sales has the full figures.

03Tax and the marketplaces

Online sellers should also watch tax policy. As Hairdressers Journal reported in July, the government plans to pay for a 20% business rates cut for pubs and music venues partly through tougher measures on online marketplace sellers that do not meet their UK tax obligations. Sellers who keep their VAT and tax affairs in order should be well placed, but it is worth checking before the Budget on 28 October. Our Autumn Budget 2026 article covers what is expected.

04What it means for online sellers

The final quarter is the busiest time of year for most online businesses. Stock for Black Friday and Christmas usually has to be paid for in October, often to overseas suppliers, and advertising costs rise as competition for clicks peaks. Marketplace payouts and card settlements then arrive days or weeks after each sale. A seller who runs out of stock or cuts advertising too early can miss the most profitable weeks of the year. Returns after Christmas then reduce January income, so it pays to plan cash flow into the new year, not just to the end of December.

05Funding options for e-commerce businesses

• Revenue-based loans are repaid as a share of sales, so repayments rise and fall with trading.
• Stock finance and trade finance pay suppliers, including overseas, before goods arrive.
• Merchant cash advance is repaid from card takings.
• VAT loans spread a large VAT bill after a strong quarter.
• Warehouse equipment finance funds racking and packing kit.

Our e-commerce loans page explains how lenders view online businesses, and there are guides for Amazon sellers and eBay sellers.

06What lenders look at for online sellers

Lenders who fund online businesses usually look at your sales data directly. Many connect to your marketplace, shop platform or payment provider to see monthly revenue, refunds and growth, rather than relying only on filed accounts. They will also look at your margins after advertising and fulfilment costs, how much stock you hold and where it comes from, and how concentrated your sales are on one marketplace. Businesses selling through several channels, with steady or growing sales and low return rates, tend to find more options. Keeping your VAT returns up to date matters too, as lenders will check for HMRC arrears.

07How to compare your options

1. Work out how much stock and advertising you need for the final quarter, and when each supplier must be paid.
2. Check how quickly your marketplace or payment provider pays out.
3. Have your sales data, bank statements and latest accounts ready. Many lenders connect to your sales platform directly.
4. Use Instant Quotes to see your lender matches instantly, with no credit check.
5. Compare offers on the total amount you repay, not just the share of sales taken.

Online's share of spending is rising again. Get your Instant Quotes to see which lenders could fund your online business. Lenders make every decision, and all finance is subject to status.