- Insights
Explore the Growing Opportunities in Germany's E-Commerce Market
Germany is one of the most popular markets for e-commerce sellers to get started in, with many of our own clients choosing Germany as their starting point.Why is this, and why should you consider targeting German customers?
In today’s article, we’ll take a look at the research conducted by RetailX, a leading organisation in market research which has recently published its findings in the latest edition of their Germany 360° E-Commerce Report 2024.
General e-commerce trends
Germany currently contains the largest population in Europe. Although the population may be in decline, like many other developed countries, research suggests that the number of people participating in online shopping activities and e-commerce activities have continued to grow.
Internet usage has remained persistently high at 94% of the population, and 80.57% of the population in Germany was recorded as having shopped online during the course of 2023. This signifies one of the highest market penetration rates in Europe.
It is worth noting that RetailX has categorised Germany as a mature market, meaning that although future growth may not be as fast, it is one of the most stable e-commerce regions with persistently high demand across the population. It is therefore expected to continue growing year-on-year by around 2%.
One of the highest growth areas is in the fashion market, where the number of consumers buying fashion online has risen from 27 million (2019) to 36 million (2023).
Platforms
Online shopping in Germany is dominated by major e-commerce platforms which sellers can take advantage of. This includes the likes of multinational corporations such as Amazon, as well as local marketplaces such as Zalando. Online marketplaces now occupy 83% of online sales traffic in Germany.
Consumer characteristics
The extent to which consumer shop online vary by sector, with fashion being one of the most popular. 61% of German consumers were recorded as having bought fashion items and accessories online. Other popular categories included homewares, books, cosmetics and beauty products, and sports and leisure items.
The most common reason given for choosing to shop online was the allure of lower prices. Other reasons cited included the convenience of home delivery, time savings, special offers and a wider range of products compared to physical stores.
The latest report from RetailX has shown that Germany remains one of the best places to start your e-commerce journey. It’s also still one of our most popular choices for first-time e-commerce sellers!
TBA Global is best placed to help deal with the bureaucracy, with our wide range of compliance services covering Value-Added-Tax (VAT), Extended Producer Responsibility (EPR), product safety regulations, trademarks, and so much more! Get in touch with us at info@tbaglobal.com for more information on how we can help your business.
All statistical and graphical information was provided by RetailX. More information can be found here.
