Online retailing in the UK is growing at an incredible rate, and small businesses can act to capture a slice of the market, a new report has revealed.

According to data published by Verdict Research, consumer online spending increased by 33.4 per cent to £10.9 billion last year, while experts predict it is likely to triple by 2011 and reach £28.1 billion.

One of the driving forces behind the growth is the emergence of service companies that offer automated fixed-price internet shops for retail businesses and home-based traders.

One such company is Internet Retailer, and its chief executive, David Geran, said: "We want to make sure that home-based traders and retail businesses do not miss out on this highly lucrative market.

"We are finding that independent retailers, working professionals, students, retired folk and even full time stay-at-home parents are giving online retail a go either as a hobby or as a serious full-time business," he added.

The report also cites the expansion of affordable broadband providers as another contributing factor to the phenomenal growth of the online sector.

Meanwhile a separate survey by RightNow Technologies revealed that 48 per cent of consumers have increased their online shopping habits "a great deal" or "somewhat" over the past five years.

According to Credit Action, Brits spend £82 million online each day.