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.

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.”

Sources:

[1] Statista | E-commerce in the United Kingdom (UK) – statistics & facts

[2] Ten Entrepreneurs | The immigrant founders of Britain’s fastest growing businesses

For data sources, please consult the dataset here.

Methodology:

1. The Amazon accountants Archimedia Accounts sought to investigate where in the UK would be best to start an e-commerce business.
2. To do this, the experts compiled data on the following:

• Salaries (2025)
• Warehouse prime rent (2025)
• Count of VAT and/or PAYE businesses (2025)
• Count of new business births (2023)
• Count of new business deaths (2023)
• Count of active enterprises (2023)
• New business survival rate (2018-2023)

3. The experts collected the most up-to-date information available. This is indicated in brackets above.
4. Due to inconsistent regional availability, Northern Ireland has been excluded from this dataset.
5. Each region was then given a score out of 10 based on these factors. A percent-rank formula was used to compare each region’s value against others on a scale between 0 and 1. Lower values were favoured for some factors, such as warehouse prime rent and business deaths, so were inverted. 
6. The final score was calculated as the square root of the averages of all seven normalised values and multiplied by 10 to smooth out outliers and make results easier to compare. 
7. This means regions with lower business costs, strong start-up activity, and high survival rates are ranked higher. 
8. Please find the full dataset here, along with the data sources used. 
9. The data was collected in October 2025 and is accurate as of then.