Linnworks report links retail growth to ops maturity

Linnworks has published its annual State of Commerce Ops 2026 report, presenting survey findings on growth, operational constraints, and technology adoption among mid-market online retailers in the UK and US.

The report is based on responses from 500 retail leaders, split evenly between the two markets. Linnworks defined mid-market retailers as those with annual revenues of USD $7.5 million to USD $100 million. Respondents held senior roles across operations, supply chain, logistics, eCommerce, and executive leadership.

The findings point to broad trading momentum, while suggesting that operational design, inventory visibility, and fulfilment execution increasingly determine which businesses turn demand into scalable growth.

"As retailers navigate the ever-evolving eCommerce industry, one thing remains clear: growth and operational maturity are inseparable," said Jon Bahl, CEO of Linnworks.

Growth Patterns

In the UK sample, 89.6% of retailers reported moderate to significant year-over-year growth; in the US sample, 88.8% reported the same. The report argues that for many businesses, ambition and demand are less of a constraint than the structures and systems needed to run multi-channel operations.

Stronger growth outcomes also correlated with higher levels of automation and what Linnworks describes as multichannel maturity-markers of operational readiness for retailers managing multiple sales channels, warehouses, and carrier options.

Inventory Visibility

Inventory visibility emerged as a consistent weak point in both markets. Only around one-third of respondents in each country reported excellent visibility across channels and warehouses.

The survey highlights common failure points that become more pronounced as order volumes rise and channel complexity grows, including inventory accuracy, fulfilment execution, and system reliability. Gaps in stock visibility can lead to downstream issues in picking, packing, shipping, and customer service.

AI And Automation

The report suggests artificial intelligence is now used more widely among mid-market retailers, particularly in customer-facing applications. It found that 60.8% of US retailers and 54.8% of UK retailers use AI chatbots for customer support.

Interest is also expanding across operational use cases, including demand forecasting, inventory and order management, marketing optimisation, fraud prevention, and automation.

Operational automation is also common. In the UK, 64.8% of retailers described their operations as mostly or highly automated, compared with 60.0% in the US. The survey suggests adoption depth varies, with differences reflected in growth outcomes, operational resilience, and leadership confidence.

Fulfilment And Carriers

The findings also emphasise delivery performance and logistics resilience. The report describes fulfilment and logistics as central to customer experience, and frames carrier diversification as a sign of operational maturity.

Retailers using multiple carriers are described as more resilient during peak periods, with fewer disruptions and more flexibility to balance cost against delivery speed. This reflects a market where service expectations and delivery options influence conversion and repeat purchases, particularly in categories where delivery promises are a differentiator.

Platform Context

Linnworks positions itself as a provider of inventory, order, and warehouse management software for eCommerce operations. It says it serves more than 4,000 online retailers and connects to more than 100 marketplaces, with tools to manage listings, inventory, orders, and shipments through a centralised system.

The report outlines five areas for assessment and forward planning: revenue and order volume growth, operational efficiency and scalability, automation and AI adoption, logistics and fulfilment complexity, and strategic priorities for the year ahead.

"Our new survey data sheds light on the ongoing growth of the market while providing clients with strategies for scalability and progress," said Bahl.