papmall® Team
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By papmall® 05 October 2022
Germany has the biggest economy in Europe and is the continent's most populated nation after Russia. Germany was split into two separate states following World War II: West Germany (formally known as the Federal Republic of Germany) and East Germany (the German Democratic Republic). While the communist GDR was more linked to nations like the Soviet Union, Hungary, and Poland, the western portion sought developed ties with other Western European nations. Germany had an estimated 81.1 million residents as of July 2013, with 42% being between the ages of 25 and 54.
(Overview the E-commerce in Germany with papmall®)
For many years, German pay through invoice was their preferred mode of payment. However, a survey from 2020 Payment method: Traditionally, online shoppers in Germany are keen on using invoices. Revealed that e-wallets were the most desired option among customers who had a chosen payment method. PayPal is very popular among Germans and credit cards, and direct debit are more common payment options.
(Customer Behavior of Germany’s E-commerce)
The most popular product category in Germany’s E-commerce is online fashion, followed by consumer electronics and media. According to RetailX research, 85 percent of Germans had shopped online in 2020. Additionally, 95% of people were online during that year.
In April 2019, Handelsverband Deutschland published some informative data about e-commerce in Germany. In 2018, the market had a value of 53.3 billion euros, and in 2019, that value was anticipated to rise to 57.8 billion euros. According to a different assessment by Bevh, e-commerce in Germany in 2020 was valued at 83.3 billion euros (services excluded).
(Germany’s E-commerce B2C Overview 2013 - 2020)
Germany's e-commerce market revenue, with 141.20 billion USD, is one of the top five economies in the world according to a comparison of revenue. China holds the top spot with USD 1,412,00 billion. With a score of 80.1%, Germany is already higher in this comparison of user penetration, ranking as high as a third. This nation is behind Norway (81.6%) and the UK (81.5%).
By 2025, 68.4 million people are projected to be active in the German eCommerce market. In addition, This number will be anticipated to increase from 80.1% in 2022 to 81.9% by 2025. Additionally, an average revenue per user (ARPU) of US$2.10k is anticipated. Germany's e-commerce market is predicted to expand quickly, especially for fashion items, electronics, and media, according to segment-by-segment sales estimates.
E-commerce in Germany platforms targets high-end fashion to increase transaction value and income. Businesses are aiming to increase their transaction value and income by focusing on the high-end fashion area, which is becoming increasingly popular among customers in Germany's e-commerce market, where there is tough competition. German travel services are gradually moving to e-commerce, with all tour services entirely through e-commerce portals. On-demand delivery platforms are looking to expand global delivery through vouchers for international mergers.
Globally, the pandemic epidemic has sped up the expansion of the on-demand food business, and over the next three to four years, analysts predict that trend will continue.
German food delivery companies increase investment in local and international food delivery platforms. Platforms for online food delivery have profited from an increase in demand during the worldwide pandemic epidemic. Businesses are worried about how long their business will last after eateries reopen, though. Cross-shareholdings in the industry result from a rush into new markets and early consolidation efforts.
(The Future of E-commerce in Germany)
Germany’s e-commerce appears to be dominated by two major players: American retailer Amazon and German-based Otto. They control roughly half of the internet market, making it very evident that it's challenging for smaller retailers to stand out. Here are the top 10 E-commerce stores in Germany:
More than the top 10, papmall® provides an e-commerce platform that serves for who need a digital solution for their business such as:
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To serve an e-commerce environment where anyone can participate. Dropshipping is seen as a new form of making money in Germany in recent years. To help you understand how widespread this form is in Germany, let's take a look at the 10 best service providers in Germany:
In general, e-commerce in Germany is growing strongly, but Amazon is still at the top of the trend and it seems that they still do not want to share this piece of cake with anyone.
Dropshipping is currently in Germany as a form of making money through e-commerce that has skyrocketed since the pandemic period. This makes it easier for many top-selling items in Germany to stand firmer in the German e-commerce market such as clothing, home appliances, etc.
In addition to analyzing Germany's e-commerce indexes on goods and services, a new E-commerce platform for freelancers has been developed and applied in Germany and other countries around the world. That's papmall® where you can provide services online and work remotely or hire freelancers without territorial limits.
Amazon, an American retailer, and Otto, a German company, look to be the two main competitors in Germany's online marketplace. It is clear from their control over almost half of the online industry that it is difficult for smaller merchants to stand out. The top 10 E-commerce shops in Germany are shown below:
A report on German e-commerce was issued by Handelsverband Deutschland in April 2019. The market has a value of 53.3 billion euros in 2018, and it is expected that this value would increase to 57.8 billion euros in 2019. In a separate analysis by Bevh, e-commerce in Germany was estimated to be worth 83.3 billion euros in 2020. (services excluded).
This shows that online shopping in Germany is very active. Some of the items that are considered the best selling online:
68.4 million persons are anticipated to participate in the German eCommerce industry by 2025. Additionally, it is expected that penetration would rise from 80.1% in 2022 to 81.9% by 2025.
The age range between 25 and 34 is the most active in Germany's E-commerce. Nine out of 10 Germans between the ages of 25 and 34 made internet purchases. Conversely, persons over 54 make fewer online purchases, as might be expected. Still, more than 10 million individuals older than 54 purchase online, with almost 60% of those in the 55 to 64 age range and a significant 40% of those in the 65 to 74 age range.
papmall® - an international e-commerce platform that not only provides online shoppers a simple, secure, and enjoyable online shopping experience but also plays as a solution for global vendors to optimize sales revenue.
Contact us