Online retailing in the UK continues to grow exponentially and Liverpool digital venture Velstar is prospering by helping eCommerce businesses offer consumers a ‘seamless’ shopping experience. Tony McDonough reports

 

During the COVID pandemic, when bricks and mortar retailers were closed or restricted for long periods, internet retailers made hay.

At one point, in 2021, eCommerce grabbed a 38% market share of all UK retail sales, according to the Office for National Statistics. As shops reopened that number fell back but it now hovers around the 30% mark – far higher than the 20% share seen in 2019.

This apparently unstoppable rise of online retail is good news for Liverpool digital agency Velstar which has enjoyed rapid growth over the past few years, both organically and through strategic acquisitions.

From a consumer point of view, eCommerce can sometimes disappoint. From user-unfriendly websites to fulfilment, the process of getting the right online order to the customer, there are challenges to overcome.

Velstar, which was founded in 2016 by Dan Sheard, specialises in building and running Shopify Plus (a well established eCommerce platform) stores, which is the enterprise version of the Shopify platform.

Chief executive Peter Birks told LBN: “We are a full service eCommerce agency for D2C (direct to consumer) and B2B (business to business) businesses, focused on the design, build, and optimisation of our clients’ online stores.

“We not only ensure they look great and reflect the brand, but also that they work seamlessly. We continually improve performance so the stores are faster, easier to use, and ultimately help our clients reach their strategic growth targets.”

Another Velstar offering is Peracto, a custom eCommerce platform tailored for B2B businesses. Velstar’s team can build customised online stores that manage complex product data, integrate with existing systems, and provide a seamless experience for both customers and staff.

“In short, Velstar combines creative design, technical expertise, and strategic marketing to help retailers succeed in the digital world,” explained Peter who was appointed as chief executive in summer 2024.

“This is reflected in our three divisions: the Commerce pillar, focusing on Shopify D2C builds; the Enterprise pillar, focusing on Peracto and the B2B side of the business; and the Performance pillar, which focuses on overall performance and optimisation across the divisions. These divisions create a seamless, end-to-end service.

“Together, they form a powerful digital ecosystem that drives sales, efficiency, and long-term value.”

In March 2022 Velstar relocated its team from Mann Island, close to Liverpool waterfront, to The Tempest in Tithebarn Street to accommodate its growth. Later the same year it acquired Chester-based marketing firm We Influence in a deal backed by River Capital.

Velstar was already seeing significant organic growth as it entered 2024 and by the end of that year it was a much bigger business having completed no less than three acquisitions.

In March 2024 it bought Surrey-based agency WeTeachCRO and this was followed by another acquisition in May which saw Leeds-based B2B eCommerce venture 9xb join the Velstar group.

In November it rounded off the year with the acquisition of Edinburgh-based advertising and social agency Yatter. It meant that Velstar finished the year with a headcount of more than 150 people and revenues approaching £10m.

 

 

Peter acknowledged that growing by acquisition brings its own challenges. Not only do systems and processes have to be integrated but also people. Harmonising different work cultures and methods can be a big hurdle for a business that wants to maintain momentum.

He added that the success of the Velstar Group is  powered by an “incredibly talented team of industry experts passionate about delivering exceptional levels of customer service”.

“At Velstar, we’ve learned that patience and communication are key,” he said.

“Every acquisition brings in talented people with their own culture and strengths, and our focus has been on blending those seamlessly into the wider Velstar team while maintaining the collaborative, innovative spirit that defines us.

“The acquisition of 9xb allowed us to expand the enterprise side of the business and provide specialised services to B2B clients. This complements our core Shopify Plus offering and aligns closely with Peracto.

“By bringing together 9xb’s expertise with our existing teams, we can serve a wider range of clients, tackle more complex projects, and adapt to changes in the market.”

In a further boost to its prospects, Velstar was recently elevated to Shopify Platinum Partner status, just six months after becoming a Premier Partner.

Peter said: “Becoming a Shopify Platinum Partner so soon after achieving Premier status is a huge milestone for us and a real reflection of how far Velstar has come.

“It recognises the depth of our Shopify expertise, the quality of our work, and the success we’ve helped our clients achieve. More importantly, it shows that our focus on excellence, collaboration, and continuous improvement is paying off.

“This achievement also sets the tone for where we’re heading. As Shopify continues to evolve, we’re investing heavily in innovation, new technologies, and talent to ensure we stay at the forefront of the platform.”

 

 

Velstar works in a fiercely competitive market. Added to that the UK is experiencing a difficult economic climate. With online retailers competing for the money of cautious consumers Peter insists doing what they do right has never been more important.

“Our focus on creating performance-driven eCommerce experiences means our work remains essential and relevant for clients. When consumer spending is cautious, the need for an optimised, sale-driving online store becomes even more critical.

“We distinguish ourselves by offering a fully integrated, performance-driven approach. Instead of focusing on just one area, we bring together design, development, and marketing expertise under one roof.”

Peter says there are no immediate plans for new acquisitions but doesn’t rule out the possibility “where they make strategic sense and add real value”. But he insists “sustainable growth” and maintaining Velstar’s quality and culture are its key objectives.

“We’ll continue to strengthen our position as a leading eCommerce agency, both in the UK and internationally, investing in talent, technology, and innovation to keep pushing the boundaries of what we can offer our clients,” he explained.

“Liverpool has been a fantastic base for Velstar. The city has a strong sense of community, a growing digital and creative scene, and access to incredible talent.

“Being based here also gives us a slightly different perspective from agencies in London or Manchester, which clients often find refreshing.”

To explore Velstar’s full range of eCommerce solutions and learn more about its proposition visit velstar.agency