Amazon takes £4 in every £10 spent online

AMAZON is taking almost £4 in every £10 spent in UK online stores, giving it a remarkable stranglehold on the sector.

The figures come from web retail experts who warn other stores will have to copy its model or risk extinction.

In the UK, any company that has a market share of more than 25 per cent is said to have monopoly power.

Among UK supermarkets for example, Tesco has a market share of about 30 per cent. But Amazon holds an even stronger position – at 38 per cent – while extending its reach into groceries, fashion, and is even thought to be looking at car sales.

Britain is a goldmine for the US behemoth, which benefits from the fact that it has limited its UK tax liability by channelling sales through Luxembourg.

And unlike traditional British bricks and mortar stores, it does not have to pay punishing business rates.

The figures come as today the US web giant holds its Prime Day sales event.

The Amazon Prime service requires customers to pay an annual subscription of £79 in return for ‘free’ next-day or even same-day delivery in some areas.

Entertainment services including films, TV and music are included in the bundle.

Digital commerce consultancy Salmon research found that 48 per cent of British shoppers would rather order a product from Amazon Prime than any other retailer. Salmon’s Hugh Fletcher said: ‘As consumers increasingly look to service, speed and convenience – rather than brand – Amazon sets the standard that others must follow or risk being locked out.’ And Greg Greeley, vice president of Amazon Prime, said: ‘This Prime Day, our Prime members will find hundreds of thousands of deals.’