Online retail sales in the UK have increased by 18% to reach £11bn in December 2013, compared to £9bn in December 2012, according to IMRG Capgemini e-retail sales index.
Throughout the year, the online sales have generated £91bn, an increase of 16% in the last 12 months.
With the rise in online sales, the e-retail accounts are estimated to account for 21% of the total retail market.
Smartphones and tablet devices were mainly responsible for the increase in sales, accounting for 186% and 131% of sales, respectively.
Among different retail products, clothing and electrical goods reported the highest growth rate of 17% and 18% year-on-year, respectively.
According to the index, purchasing a product online and collecting it from store accounted for 25% of multichannel retailers’ sales.
IMRG chief information officer Tina Spooner said with online shopping having become part of their everyday lives, the growth levels they are seeing in the e-retail market will not be slowing down any time soon.
"We predict that the UK online retail market will achieve 17% year-on-year growth during 2014 and we also expect the £100 billion threshold will be broken, with a staggering £107 billion predicted to be spent online in the UK alone this year," Spooner added.
"With mobile and tablets now accounting for almost 4 in 10 visits to e-retail websites and 27% of the UK online retail market, we expect growth to continue throughout 2014 with m-retail set to account for 30% of online sales during Q1."
Capgemini retail and technology head Chris Webster said the performance has been fuelled by a variety of factors, with major contribution by mobile technology, which has enhanced access to the internet and enabled the more tech savvy to shop while on the move.
"Combined with greater choice of delivery and collection options, as well as improved retail trading, the e-retail sector has all the ingredients for ongoing success," Webster added.