In 2023, the German B2C e-commerce market generated 85.4 billion euros in revenue , of which nearly 47 billion euros were sold through smartphones, accounting for 55%. According to Statista, the German e-commerce market revenue is expected to reach 98.31 billion U.S. dollars in 2024 , and will continue to grow at a compound annual growth rate of 8.23%. By 2029, the market size will grow to 146 billion U.S. dollars.
Compared with emerging markets such as Latin America with weak infrastructure and Southeast Asia with low average order value, Germany is a high-quality overseas destination in terms of business environment, online shopping groups and national purchasing power, which is worth a try for sellers.
Advantages of German e-commerce market development
The largest economy in the EU
Germany is located in the heart of Europe and is an important hub for trade exchanges between European countries, with a strong economic radiation effect. Germany's economic size ranks first in the EU , reaching 4.06 trillion euros. Its strong economic strength gives it a broad future prospect for the development of e-commerce.
High spending power
Germany has a population of 83 million, making it the most populous country in the European Union. Its per capita GDP ranks fourth in the world and its per capita consumption capacity ranks third in the world . The huge population base has led to an increasing number of consumer groups, and coupled with its high consumption capacity, Germany has become one of the countries with higher average customer spending in Europe, with an average customer spending of 134 euros .
Stable e-commerce ecosystem
Germany's e-commerce ecosystem has reached a relatively stable level. With the deepening of the Internet process, the Internet penetration rate has reached 93.42% , far exceeding the European and global average. The number of German e-commerce users is also increasing, and it is expected to reach 51.8 million by 2029, and the e-commerce user penetration rate will reach 70.6% .
People prefer online shopping
German online shoppers account for 83% of the total, with an average annual online shopping expenditure of $726 per person, ranking first in Europe. Among the main source countries for cross-border shopping goods, European countries account for 65%, followed by China at 44%, the United States at 32% and the United Kingdom at 29%.
Perfect logistics system
Germany, located at the crossroads of Europe, has inherent advantages in logistics and transportation. As one of the important member states of the European Union, sellers can radiate the entire EU market through German warehouses , and goods shipped to other countries do not need to undergo secondary customs clearance and pay taxes . In addition, Germany has large international logistics companies such as DHL and Hermes, which can provide great assistance for warehousing and distribution, cost reduction and efficiency improvement.
Consumer Trends
Consumer portrait : German online shoppers are mainly young people and the middle class. Among them, those aged 45-54 account for the highest proportion, and more than 1/10 Germans shop online at least once a day.
Consumer characteristics : Germans have a relatively conservative view of consumption, which to a certain extent means that they have a high degree of loyalty . Germans are slow to accept new things, but as long as they have a satisfactory shopping experience, they will become the most loyal customers.
Shopping trends : Germans have high requirements for quality and are willing to pay for it, with profit margins much higher than those in the US and UK. However, with the energy crisis and economic recession, 55% of German consumers are willing to spend less money to buy cheaper white-label products .
Mainstream e-commerce platforms
Amazon Germany Amazon.de
Amazon is the world's largest e-commerce platform. Its German site was formerly the German online bookstore TELEBOOK, which was acquired by Amazon in 1998 and developed into today's Amazon Germany. The platform covers multiple categories such as household goods, office and home furniture, consumer electronics and small household appliances, outdoor and sporting goods, home decoration and building materials, auto parts, clothing, shoes and bags, etc.
According to the annual report released by Amazon, Amazon Germany's turnover in 2023 reached 34 billion euros, an increase of 12% compared with the same period in 2022, ranking first among the top 100 B2C e-commerce companies in Germany , ahead of other e-commerce platforms such as OTTO.de and Zalando.de.
Zalando
Zalando is a German-based fashion e-commerce platform that sells footwear, fashion apparel, accessories and beauty products online, mainly targeting European consumers who pursue fashion and focus on quality. Currently, Zalando's online retail business has gradually covered the European continent, including more than 20 countries including Germany, France, Italy, Spain, and the United Kingdom, with more than 50 million active customers .
OTTO
OTTO e-commerce platform is one of the leading e-commerce platforms in Germany. It currently has 123 branches and its business covers more than 30 countries in Europe, North America, South America and Asia. Currently, OTTO offers more than 1 million products, covering multiple categories such as fashion, home furnishings, electronics, toys, etc. According to data released in 2023, OTTO has 11.7 million active users , equivalent to 14% of the total population of Germany; the average daily visit volume is 2.9 million times, and the average unit price per consumer is as high as 232-298 euros.
Temu
Temu is a cross-border e-commerce platform under Pinduoduo Group. The platform has a wide variety of products, covering household goods, electronic products, clothing, shoes and hats, beauty and personal care and other categories. According to data from authoritative institutions such as ECC KÖLN, in 2024, the purchase rate of German consumers on the Temu platform reached 32% , a significant increase from 11% in 2023. The platform has 15 million monthly active users , ranking among the top ten shopping apps with the highest number of active users in Germany.
Important consumer festivals
Munich Oktoberfest : Held from the last week of September to the first week of October every year, it is one of the most famous beer festivals in Germany and even the world. Various souvenirs and clothing related to the beer festival are very popular.
Cologne Carnival : One of the largest and longest carnivals in Germany, it starts around November 11th every year and lasts until February or March of the following year. During the carnival, citizens and tourists will buy various carnival costumes, masks and props to participate in grand parades and celebrations.
Cyber Monday : In recent years, sales on Cyber Monday in Germany have continued to grow. According to historical data and trends, sales on this day often reach billions of euros, becoming an important growth point for the German e-commerce industry. German consumers' budgets are mostly between a few hundred and a few thousand euros.
Christmas : Christmas is one of the most important festivals in Germany and is also the peak period of consumption throughout the year. According to eBay's report, German consumers' Christmas shopping demand usually peaks in the three weeks before "Cyber Monday", and more and more consumers have begun to look for Christmas gifts since the end of August. Popular categories include home appliances and consumer electronics, household goods, fashion and beauty products, etc.
Existential Challenges
According to a survey by German digital association Bitkom, the return rate of German online shoppers accounts for 11% of their total online purchases , and the main reasons for returns are inappropriate size or product damage. Young consumers have the highest return rate, among which the average return rate of people aged 16-29 has reached 15%, and the return rate of men (9%) is significantly lower than that of women (14%). For sellers, the average return cost is 5 to 10 euros .
German consumers have higher requirements for product quality. In the face of this challenge, sellers need to study consumers' shopping habits, use "good quality" as a benchmark, ensure the accuracy of product descriptions, avoid false and exaggerated slogans, and reduce returns due to information asymmetry.
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